Buy now, pay later, regret forever? Alarming rise of BNPL scams in India | Technology News

In 2024, as online shoppers flocked to platforms during the festive season, scammers were quietly exploiting the Buy Now Pay Later (BNPL) option to trick unsuspecting consumers. Fraudsters posed as representatives from popular e-commerce sites, claiming that the victim’s Pay Later account was under threat. In a panic, victims were manipulated into revealing OTPs and personal details—ironically, in an attempt to avoid fraud.BNPL allows customers to purchase items instantly and defer payment through short-term, often interest-free, installments. It’s marketed as a convenient alternative to credit cards, but the speed and simplicity of BNPL make it highly vulnerable to misuse.
“BNPL services, while offering convenience, are prone to scams involving identity theft and account takeovers,” cybersecurity expert Jeet Jaiswal told . “Fraudsters trick users into giving up sensitive login and payment information.”
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Last festive season, BNPL scams were rampant on one of the popular Indian e-commerce platforms. Scammers posing as agents from the platform contacted customers claiming someone tried to access their “pay later” account, created a sense of urgency, and coaxed them into sharing sensitive information.

Cyber lawyer Ankit Dev Arpan, director at Lex Cyber Attorneys LLP, said, “Loan apps, in particular, have become a major tool for financial deception, targeting low-salaried employees, students, rural residents, and even professionals.”
He explained how they operate: “Scammers create apps that appear as legitimate loan or EMI providers. With clean interfaces and quick approvals, these apps deceive users into signing up for BNPL services that don’t ex.”
According to Arpan, there are different kinds of BNPL scams:Story continues below this ad
Loan interest rate scam: Victims are promised 10–24 per cent interest, only to find it’s monthly, not annual, leading to massive overpayments with hidden fees and penalties.
CIBIL score scam: Victims are told their credit scores will drop unless they make immediate payments to accounts falsely linked to their identity.
KYC phishing scam: Fake representatives request Aadhaar and PAN details to enable BNPL services. These are then used to place fraudulent orders or take loans in the victim’s name.
Gallery and contact access scam: Some apps demand access to galleries and contact ls of users’ smartphones. Once granted, personal photos are stolen and used for deepfake blackmail.Story continues below this ad
Unled stocks scam: On platforms like Telegram, victims are lured into buying stocks before IPOs through fake BNPL schemes—only to find the company vanishes after payment.
“Fraudsters even create fake e-commerce sites or send phishing messages offering BNPL benefits. Once victims share information or make payments, the sites disappear,” Jaiswal said.
How to protect yourself
Secure personal information: Always enable two-factor authentication (2FA) on BNPL accounts.
Monitor transactions: Regularly check your statements for unusual activity.
Beware of phishing: Never share personal info via email or phone unless you’re sure of the source.Story continues below this ad
What to do if you fall victim to such a scam
Report to the BNPL provider: Contact your BNPL service immediately. Most services have fraud protection measures in place.
Freeze your account and alert bank: If identity theft is involved, secure your financial accounts freezing or blocking them to prevent further misuse.
Report to cybercrime authorities: File a complaint with local law enforcement, cybercrime authorities (dial 1930), or financial regulators to take legal action.
Educate others: Spreading awareness helps prevent more people from falling victim to similar scams; hence, it is very important to educate others.
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As the world evolves, the digital landscape does too, bringing new opportunities—and new risks. Scammers are becoming more sophicated, exploiting vulnerabilities to their advantage. In our special feature series, we delve into the latest cybercrime trends and provide practical tips to help you stay informed, secure, and vigilant online.