"BNPL Fraud Alert as Account Takeovers Surge"

Security researchers at Imperva found that account takeover (ATO) attacks targeting the financial services sector surged 58% from April to May this year, raising fears that fraudsters are focusing more on buy now, pay later (BNPL) schemes.  The researchers noted that BNPL has become increasingly popular as the cost of living has increased, enabling consumers to buy the products they want by splitting purchases into smaller, interest-free payments.  The global market is predicted to be worth a staggering $4tn by 2030.  However, the researchers warned that new and emerging sectors like BNPL are often favorite targets of fraudsters, as they may initially have gaps in security and regulation which can be exploited.  The researchers stated that both ATO and new account fraud (NAF) could impact the BNPL sector.  The researchers noted that an ATO occurs when a fraudster takes over an existing BNPL account and uses it to make unauthorized purchases.  In a NAF context, fraudsters use stolen and synthetic data to create new fake BNPL accounts to make purchases.

Infosecurity reports: "BNPL Fraud Alert as Account Takeovers Surge"