Security experts say fraud has resulted from some early Apple Pay transactions. The problem apparently is linked not to a compromise of the mobile device’s security, but to lax authentication practices used by the banking institutions to verify cards that are loaded to the iPhone for Apple Pay purchases. One executive with a mid-tier institution on the West Coast that just launched Apple Pay last month, who asked to remain anonymous, says fraud levels as high as 6 percent. By comparison, average losses for fraudulent credit card transactions typically fall below 1 percent.”]
Source: https://www.cuinfosecurity.com/apple-pay-fraudsters-exploit-authentication-a-7967