How Buy Now, Pay Later is being targeted by fraudsters

2022-01-18 06:02

Consumers are increasingly utilising Buy Now Pay Later payment options to make online purchases.

As a result, BNPL is currently the fastest growing e-commerce payment solution of recent years, now accounting for 2.6% of global e-commerce sales.

While companies offering BNPL are seeing an increase in purchases and revenue, the payment option is also attracting fraudsters, who are always on the lookout for loopholes in payment systems and often target new systems to make a profit at a retailers' expense.

Another more well-known type of fraud that is affecting BNPL is account takeover fraud.

Much of the fraud that BNPL is susceptible to can avoid 3DS checks, by a fraudster hacking into an account and changing the authentication details.

SIM swapping is also a popular method of gaining access to someone's account and beating 3DS. While 3DSv2 has been an option since last January, 3DS will not be decommissioned until October 2022, so fraud will continue to effect businesses which offer BNPL as a payment option.

News URL

https://www.helpnetsecurity.com/2022/01/18/bnpl-fraudsters/