Network Security Risks Caused by Third-Party Payment : a Case Study of Apple Pay

Abstract

The rapid growth in the adoption of third-party payment systems such as Apple Pay necessitates a thorough investigation of the security risks they present to users and how they impact user acceptance of the technology. This study used the qualitative case study methodology, employing document and thematic analysis of secondary sources, to explore the security landscape of Apple Pay through the lens of the Technology Adoption Model (TAM). The study addressed key questions regarding network security risks, vulnerabilities in the security architecture, causes of recent security breaches, and strategies to enhance transaction security. Key findings revealed that phishing, man-in-the-middle attacks, and data breaches are significant risks impacting user trust and acceptance. Vulnerabilities were identified in the tokenization process, biometric authentication methods, and third-party integrations. Recent security incidents were largely attributed to human error, software vulnerabilities, and insider threats. Effective strategies for enhancing security include the implementation of Multi Factor Authentication (MFA), continuous monitoring with AI and machine learning, and comprehensive user education and awareness campaigns. Insights drawn from this study may be helpful in the development of secure and user-friendly third-party payment systems.