Is Apple Inc. (NASDAQ:AAPL)’s Apple Pay product the solution to the credit card and personal banking information being hacked and stolen? JPMorgan Chase & Co. (NYSE:JPM) computer networks were reportedly breached and hacked earlier this year. JPMorgan is continuing to investigate the extent of damage to the customer’s financial and personal information. Meanwhile NY times reports suggest that nine other unnamed financial institutes were attacked by hackers in an attempt to steal the financial and personal information. CEO of Night Lion Security, Vinny Troia talked on Fox Business about the JPMorgan incident and the advantages of Apple Pay product.
“I think it (Apple Pay) is the way around the credit card problem. But the JPMorgan and some of these other banks I really don’t think it’s going to have much of an impact, because this particular situation they are going in and potentially accessing people’s checking accounts, mortgage accounts and things like that,” Troia said about Apple Inc. (NASDAQ:AAPL)’s Pay product.
JPMorgan Chase & Co. (NYSE:JPM) has announced that no money was stolen, no accounts were penetrated and no funds were transferred by the hackers. The major impact was on the credit card information which was stolen, which had to be compromised. Troia thinks that Apple Inc. (NASDAQ:AAPL)’s pay system might revolutionize things in future, since they are eliminating the credit card number from the payment process.
Troia pointed at another possibility in which hackers could use the usernames from JPMorgan Chase & Co. (NYSE:JPM) and match that against the 1.3 billion passwords that they have to get into checking accounts of people and drain the money. He said that the hackers have not made any such attempts yet, but he thinks that it is the next logical step that the hackers might pursue.
JPMorgan Chase & Co. (NYSE:JPM) issued statement that no passwords were stolen during the attack and Troia thinks that even if passwords were stolen, it would not help the hackers since JPMorgan would have pushed all customers to reset the passwords. But he thinks that the longer way of matching the user names with passwords would be more beneficial for the hackers. He advised all the people to make sure that they reset the passwords of checking accounts and other accounts to preserve their money.
If a customer’s account is hacked and money is stolen by a hacker, then Troia thinks that it is the responsibility of the bank to compromise the situation. He thinks that Apple Inc. (NASDAQ:AAPL)’s pay product can help eliminating the credit card information theft, but cannot prevent the theft of personal and account information.
As of 30 June 2014, Carl Icahn‘s Icahn Capital Lp hold around 52.8 million Apple Inc. (NASDAQ:AAPL) shares.