Risk on the Rise: Exploring the Unprecedented Growth of Identity Fraud in BNPL 2023
Discover new research into how bad actors are targeting Buy Now Pay later (BNPL) operators, plus how operators can scale by using an effective identity verification solution.
Chris Hooper
With total global payments on pace to reach $680 billion by 2025, 2023 looks to be another landmark year for the Buy Now Pay Later (BNPL) sector. Customers can now use BNPL to buy anything from cleaning materials to high-tech products. U.S.-based customers use BNPL in four out of five cases, and European customers are not far behind. However, to sustain this strong and steady development, the sector needs to boost its efforts to combat the growing issue of identity fraud.
According to our most recent study, document fraud across financial services increased by 79% in the last year. Throughout 2022, this spike helped to increase the overall identity fraud rate by more than 1% a quarter, and there is no indication that this upward trend will abate.
BNPL providers can now defend themselves against highly coordinated, persistent, and pervasive bad actors by utilizing AI-driven identity verification solutions.
Optimizing BNPL processes with identity verification
BNPL providers are seen by organized fraud groups as especially alluring targets because their customer proposition is heavily based on a quick and seamless experience. However, the idea that business will always experience such a high level of identity fraud isn't set in stone. BNPL providers can now defend themselves against highly coordinated, persistent, and pervasive bad actors by utilizing AI-driven identity verification solutions.
Read Veriff's new publication, Buy now pay later: The dramatic growth of organized identity fraud in 2023. This ebook provides you with a summary of the major trends that our internal fraud team has observed throughout the BNPL sector in 2022. It also discusses the industry's concerns for the coming year, delves deeply into phishing, and delivers insight into cutting-edge solutions that can help you safeguard your organization and clients against identity fraud.
Fast decisions
A 98% check automation rate gets customers through in about 6 seconds.
Simple experience
Real-time end user feedback and fewer steps gets 95% of users through on the first try.
Document coverage
An unmatched 11K+, and growing, government-issued IDs are covered.
More conversions
Up to 30% more customer conversions with superior accuracy and user experience.
Better fraud detection
Veriff’s data-driven fraud detection is consistent, auditable, and reliably detects fraudulent forms of identification.
Scalability embedded
Veriff’s POA can grow with your company’s needs and keep up with times of increased user demand.
