According to Imperva, account takeover attacks targeting the financial services sector have surged by almost 60% from April to May this year. Security researchers believe this may be due in part to buy now, pay later (BNPL) schemes targeting consumers. BNPL has become increasingly popular due to inflation, living crises, and other financial stressors. By using BNPL, consumers can buy products they want and make smaller payments that are interest free. Apple recently announced a move into the space, and the global market is predicted to be worth $4 trillion by 2030.
However, security researchers have warned that new and emerging sectors such as BNPL are often targeted by malicious actors and fraudsters. Due to their nature as emerging sectors, there are still gaps in security and regulation that can be exploited by fraudsters. Account takeover and account fraud are just some of the risks that come with the services. Consumers, merchants, providers, and banks are also potentially exposed to this type of fraud due to their involvement in the payment process.
Read More: BNPL Fraud Alert as Account Takeovers Surge
