Fintech companies enabling Buy Now, Pay Later (BNPL) and merchants using the payment method will be at increased risk of identity theft and synthetic identity fraud attacks in 2022, according to a new analysis from Experian.
The Dublin, Ireland-based data aggregator and credit bureau included the thoughts on BNPL as part of its annual Future of Fraud Forecast and cited research that predicts merchants will lose a cumulative $206 billion to online fraud over the next four years.
In addition to the surge in synthetic identity fraud plaguing BNPL providers and merchants, Experian also expects 2022 to see cryptocurrency accounts play a larger role in extracting and storing stolen funds, an increase in ransomware attacks against businesses and more romance scams and elder abuse targeting the consumer side.
“Business and consumers need to be aware of the creativity and agility that fraudsters are using today, especially in our digital-first world,” said Kathleen Peters, chief innovation officer at Experian Decision Analytics in North America. “Experian continues to leverage data and advanced analytics to develop innovative solutions to help businesses prevent fraudulent behavior and protect consumers.”