Can I get scammed through buy-now-pay-later?
BNPL fraud happens in two ways: scammers use stolen identities to open BNPL accounts, and scam merchants accept BNPL then disappear — leaving you with a debt and no goods.
Last reviewed: 10 June 2026
Explanation
Buy-now-pay-later services like Klarna, Afterpay, and Affirm allow you to split purchases into instalments. They are convenient but introduce specific fraud risks that differ from traditional credit card purchases.
The first risk is identity fraud: criminals who obtain enough personal information can open a BNPL account in your name and make purchases charged to you. BNPL providers historically had lighter identity verification than traditional lenders, though most have tightened this since. If you discover a BNPL account you did not open, dispute it immediately with the provider and with the credit bureaus.
The second risk is merchant fraud. Unlike a credit card with a well-established chargeback system, BNPL dispute processes vary widely by provider. If you use BNPL to buy from a fraudulent online store — one that takes your order and never ships — your ability to dispute the debt and get it cancelled depends on the specific BNPL provider's policies and how quickly you report the problem. Some providers handle disputes well; others are slow.
A third scenario involves phishing pages mimicking BNPL providers. You click a link claiming your BNPL account needs verification, enter your credentials on a fake page, and your real account is taken over. Always log into BNPL apps directly, never through an emailed link.
Common red flags
- BNPL provider sends an alert for a purchase you did not make
- Online store accepts BNPL but has no physical address, no returns policy, and recent reviews are suspiciously positive
- Email or text saying your BNPL account is locked with a link to 'verify' it
- Price on a BNPL-enabled site is dramatically below all other sellers
- Checkout flow asks for more personal data than usual
- You receive BNPL statements or collection notices for accounts you did not open
What to do now
- Check your credit report for BNPL accounts you did not open — dispute them immediately
- Enable purchase notifications on all BNPL apps so unauthorised charges appear instantly
- If goods never arrive, dispute the charge with the BNPL provider before the next instalment is due
- Never click links in BNPL-themed emails — go directly to the app or official website
- Report identity-related BNPL fraud to the FTC at IdentityTheft.gov
- Visit /scams/finance-scams for more on lending and credit-related fraud
Frequently asked questions
Do BNPL purchases have chargeback protection like credit cards?
BNPL dispute rights vary by provider and are generally weaker than credit card chargeback rights under the Fair Credit Billing Act. Check your provider's dispute policy before you buy from an unfamiliar merchant.
What happens if I dispute a BNPL charge I cannot resolve?
File a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint. BNPL providers are increasingly subject to CFPB oversight, and a formal complaint often accelerates resolution.