Police in Sydney, Australia reportedly arrested two men this week suspected of using Host Card Emulation technology to make fraudulent debit card purchases amounting to AUS$1.5 million (US$1.1 million).

The arrests followed an investigation that began last year in Sydney to root out possible fraud connected to HCE, according to Computerworld.

In the report, police allege that perpetrators ported mobile phone numbers and hacked into victims’ bank accounts through mobile applications, using the stolen funds to purchase electronics and other luxury goods.

HCE enables mobile payments by storing card credentials securely in the cloud instead of inside the secure element of a handset.

Getty Images

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry