After the iCloud celebrity photo hacking scandal took place a few weeks ago, many in the tech industry and the general public began to question the strength of Apple's security systems. While Apple has always prided itself on how well user identities and information is protected, the recent events seemed to undermine that credibility. It was also a major factor of concern when Apple recently unveiled the Apple Pay system.

Apple Pay allows consumers to user their smartphones and other devices to make purchases, instead of having to rely on their wallet or debit cards. A quick swipe and you will be able to use your Apple device at participating stores. This will even include the Apple Watch, which raises the question: how will the smart watch validate any of those purchases?

An insider familiar with the situation tells 9to5Mac that the security provided by the Apple Watch will essentially be two-fold, relying on both skin contact and personal information. In order to make a purchase, a user must enter in an individual PIN code while wearing the watch. Sensors on the back can determine whether or not it is actually making skin contact.

If the watch is removed from your wrist, it will lock and you will be unable to make any purchases with Apple Pay until it has been reattached to your wrist. Then, you will have to enter the PIN code once again to unlock the device and freely use it. This will allow you to keep all of your financial information secure, even when you are not physically wearing the watch itself.

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