Why BNPL platforms have become a playground for cybercriminals

BNPL (Buy Now Pay Later) is becoming popular in India because it offers short-term financing options, financial flexibility, affordability, and smaller credit lines. In fact, the BNPL market expected to reach $35–40 billion by 2026 from $3.5–4 billion in 2021.

But unlike credit cards, BNPL services lack security and many customers are left vulnerable to vishing (voice phising) scams. Most of them are via Olamoney and Mobikwik ZIP. Meanwhile, more than two-thirds of cybercrimes in India are now online and vishing scams account for 5.3% of such crimes.

To make matters worse, there is little recourse for defrauded BNPL customers because proper consumer-protection guidelines are not in place.  And even though they were scammed, many of them are being forced to clear their dues for transactions they never made.

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