Is Buy Now Pay Later Fraud Real? Here’s What You Need to Know

Buy Now Pay Later (BNPL) services have grown tremendously in popularity in the last few years. They enable shoppers to access products without needing to pay the full amount upfront.

However, according to PissedConsumer.com’s scam alert, Buy Now Pay Later fraud is on the rise. Several trustworthy reviews on our platforms further evidence incidents of BNPL fraud. 

This article highlights the most common BNPL fraud risks and how to avoid them.

Key Insights

• Affirm and Afterpay are among the biggest BNPL apps in the United States in 2025.
• 66% of BNPL users express concerns over the risks associated with the service and payment fraud trends.
• According to the PissedConsumer consumer trends report, the most common BNPL complaints are unauthorized charges, hidden fees, and billing errors.

Unexpected Fees and System Errors

One of the most frustrating consumer issues reported by BNPL users is unexpected charges. These often happen due to system glitches. 

For example, in one of Klarna reviews #5958197, the customer wrote:

There were technical issues with my transaction and I received an error page stating that I wasnt being charged.

At first, they thought everything had failed and no money had left their account. But soon after, they were shocked to find three separate charges had been applied, and days later, those charges still hadn’t dropped off.

Similar stories are emerging from users of other pay later services. For example, in review #5770271 customer shared:

I made a payment and was charged twice for the same amount…

Unauthorized Charges via BNPL Services

Double charges like this can cause major disruptions to personal budgets, especially for users living paycheck to paycheck. But what if the charges aren’t just doubled, they’re completely unauthorized?

Unfortunately, that’s the reality for many users of BNPL services. Several customers have complained about fraudulent activities on their accounts that resulted in unauthorized charges.

For example, in Klarna complaint #6217404, the customer wrote:

Fraudulent activities occurred on my account (Target purchases), tried to get help from Klarna in resolving the matter, but my request was denied.

In many cases, scammers gain access to a user’s email address or other personal information and use it to open a BNPL account in their name. This kind of payment fraud doesn’t just lead to surprise bills. It can also damage a consumer’s credit report, especially if they don’t catch the issue quickly.

Scams Involving Non-Delivery of Goods

Some customer reviews highlight cases in which customers don’t receive items after using BNLP services, yet they continue to be charged the repayment installment.

Consumer insights indicate that what makes this issue even more frustrating is that reversing such charges can be a slow and challenging process. Unlike traditional purchases, where a credit card company may quickly reverse charges for lost shipments, BNPL payments add layers of complexity.

For example, in AfterPay review #6356137, the customer explained: “Never got my package getting the run around from both afterpay and adorama…” The customer continues to be charged for the order and is having difficulty claiming insurance on the package with UPS.

Is There a Way to Avoid BNPL Fraud?

Yes. There are measures you can take to avoid common risks with BNPL. Below are 5 tips:

• Read trustworthy reviews for prospective BNPL services or apps before signing up. Online reviews can help you determine if the BNPL app or service is reliable. Check their overall rating and read reviews for insights on common issues that customers encounter when using the service. Avoid apps and companies with low ratings and too many complaints.

• Protect your personal information from scammers. For example, use strong, unique passwords for your BNPL accounts and enable two-factor authentication for extra security. Also, avoid sharing your personal information on social media and unsecured websites. Be cautious of phishing emails and texts.

• Regularly check your payment method and BNPL account for unfamiliar activity or unauthorized charges. Report any suspicious activity or charges to the BNLP company or payment method, respectively.

• Make your installment payments on time. Create a budget that includes the repayment amount. Then, ensure that your payment method has enough balance to pay your monthly instalment as of the repayment date. Otherwise, if you miss your payment, additional charges such as late payment fees may apply.

• Carefully read the terms and conditions of the BNPL services. Although BNPL services are mostly interest-free, additional charges apply under specific conditions. Read the fine print when signing up to ensure you understand the exceptions and how to make the most of your payment plan.

Shop Smarter with BNLP

Without a doubt, BNLP services offer convenience and flexibility when shopping. Their interest-free payment plans make them a preferable option to credit cards. However, be aware of Buy Now Pay Later scams, and take proactive measures to protect yourself.

By educating yourself on common BNPL issues, reading consumer reviews, and following basic security practices, you can minimize the risks and use these services responsibly.

Have you used BNPL services? What was your experience? Write a review on PissedConsumer.com