In November 2022, the specialist fraud prevention firm Callsign issued a study of 2,000 UK consumers that explores BNPL and also reveals that one in eight respondents has experienced fraud involving BNPL services, 26% of whom say they signed up to a fake BNPL service and 22% say their account was hacked (see the summary graphic below).
The impact of fraud involving BNPL services led 35% of respondents to say that they do not believe BNPL providers will protect them from fraud, and a fifth to state that they now worry about making online payments.
When it comes to the type of fraud experienced after using a BNPL service, 30% of respondents reporting fraud to say a fake account was set up using personal credentials, while 28% say they gave away personal information to a scam BNPL service.
The survey highlights the uncertainty surrounding BNPL services. 52% of respondents do not trust BNPL services to prevent them from falling into debt. This can also have a huge impact on reputation.
After experiencing fraud through BNPL, 21% of respondents stated they no longer use those services and 28% that they no longer use the retailer from which they purchased the goods.
The research also highlights that 46% of respondents stated that BNPL providers should be responsible for protecting consumers from fraud.
If you’d like to know more about how we can help you with your BNPL anti-fraud arrangements, or any other regulatory compliance issues, our specialist team is here to help.
Contact us today on 0207 436 0630 or email info@thistleinitiatives.co.uk.