Buy now, pay later (BNPL) services make shopping easier by letting you split purchases into smaller, more manageable payments. But as these services grow in popularity, scammers are finding new ways to take advantage of them.

According to a 2026 LendingTree survey, nearly half of Americans (47%) have used a buy now, pay later loan. And the trend is growing. The Consumer Financial Protection Bureau reported that 53.6 million Americans used one of the six largest BNPL providers in 2023, a 12% increase from the previous year.

With more people using these payment options, scammers have a growing pool of potential targets. Understanding how buy now, pay later scams work and how to spot the warning signs can help you protect your money.

How BNPL Scams Work

Buy now, pay later scams can take several forms, but most involve criminals gaining access to your personal information, financial accounts, or payment details. Here are four common tactics to watch out for:

  • Account takeover. Scammers use stolen login credentials, often obtained through phishing emails or text messages, to access an existing BNPL account and make unauthorized purchases. You may not realize anything is wrong until unexpected charges appear.
  • Fraudulent accounts opened in your name. Using stolen personal information, scammers can open BNPL accounts without your knowledge. Because many services offer quick approvals, fraudulent purchases can happen before you even know an account exists.
  • Synthetic identity fraud. Scammers combine real personal information, such as a stolen Social Security number, with fabricated details to create a false identity. They then use that identity to open accounts and make purchases they never intend to repay.
  • Trojan horse fraud. Like the wooden horse in the Greek myth, the scam looks harmless at first. A fraudster opens an account and behaves like a normal customer to earn the provider's trust. Then they switch the payment method to a stolen credit or debit card, or change the account details. The real cardholder finds the charges later.

According to fraud researchers at Juniper Research, Bitdefender, and FOCAL, these tactics highlight a common risk: scammers don't necessarily need access to your bank account to cause financial harm. Sometimes, your personal information or login credentials are all they need.

Why Buy Now, Pay Later Fraud Can Be Hard to Spot

One of the biggest challenges with buy now, pay later fraud is that unauthorized charges can be easy to overlook. Unlike a large, unexpected withdrawal, BNPL purchases are often divided into smaller payments that may blend in with everyday spending.

According to the Consumer Financial Protection Bureau, the average BNPL purchase in 2023 was just $135 (LendingTree). When split into four installments, that's less than $34 per payment, an amount that might not immediately raise concerns.

Keeping track of multiple payment plans can make spotting fraud even more difficult. In 2022, more than 60% of BNPL borrowers had multiple loans at the same time, and roughly one-third used more than one provider (CFPB research). With different payment schedules, apps, and automatic withdrawals, an unfamiliar charge can easily go unnoticed.

Account security adds another layer of risk. A 2022 survey found that one in seven BNPL users reported experiencing fraud, while 45% of people using multiple BNPL services reused the same email address and password across accounts (Callsign, via Crowdfund Insider). Reusing login credentials can make it easier for scammers to access multiple accounts if those credentials are compromised.

Financial fraud doesn't always involve a large, suspicious transaction. Sometimes, it's a series of smaller, unfamiliar charges that go unnoticed over time. That's why regularly reviewing financial activity and knowing what to look for can make a meaningful difference.

Learn more about The Passwords Hackers Guess First

Warning Signs and Simple Protections

Buy now, pay later scams can be difficult to recognize, especially when fraudulent charges are small or spread across multiple payments. Knowing what to look for and taking a few simple precautions can help protect your personal information and finances.

Watch for:

  • Unfamiliar charges or account notifications. A BNPL charge on your bank statement, a payment reminder for a purchase you don't recognize, or a welcome email from a provider you've never used could indicate that someone has accessed your account or opened a new one in your name.
  • Suspicious emails or text messages. Be cautious of messages claiming your BNPL account has been locked, a payment has failed, or you need to verify your identity immediately. Scammers often impersonate legitimate providers and include links to fake websites designed to steal your personal information or login credentials.
  • Unexpected activity on your credit report. An unfamiliar account or credit inquiry could be a sign that someone is using your identity to apply for credit. Keep in mind that not all BNPL providers report activity to credit bureaus, so fraudulent accounts may not always appear on your credit report.
  • Requests for unnecessary personal information or permissions. If a BNPL app or website asks for access to your contacts, messages, or other information that doesn't seem necessary, proceed with caution. Fraudulent apps and websites may use these requests to collect sensitive information.

Protect yourself:

  • Use a unique, strong password for each BNPL app, and turn on two-step verification.
  • Log in through the official app or website — never through a link in a message. Caller ID and emails can be faked.
  • Check your BNPL accounts as you would a bank account. Small charges still matter.
  • Close BNPL accounts you no longer use.
  • Consider freezing your credit with Equifax, Experian, and TransUnion. While a freeze won't prevent every type of BNPL fraud, it provides an important layer of protection against identity theft.
  • Before using a BNPL service, review its repayment schedule, potential late fees, refund policies, and protections against unauthorized transactions. Not all BNPL providers offer the same consumer protections, so it's important to understand what happens if something goes wrong.

What to Do If You Suspect Fraud

  1. Contact the BNPL provider right away through its official app or website. Report the fraud and ask them to freeze the account.
  2. Call your bank or card issuer if a linked card was charged.
  3. Change your passwords, starting with email.
  4. Report identity theft at IdentityTheft.gov and scams at ReportFraud.ftc.gov.
  5. Freeze your credit if you haven't already.

Scams like these succeed when no one is watching. The good news: a few habits, and a second set of eyes on your accounts, go a long way. Carefull helps families spot unusual activity early, before small charges turn into big problems.