Online shopping is getting easier with services like Buy Now, Pay Later (BNPL), where you can buy something today and pay for it later. But now, many scammers are using BNPL to cheat people. They pretend to be from trusted websites and trick people into sharing personal details like OTPs and ID numbers. These scams are growing fast in India. In this article, you’ll learn what BNPL scams are, how they work, and how to stay safe from them.
Read More: How To Report Cybercrime And Online Fraud In India?
What Is BNPL?
Buy Now, Pay Later (BNPL) enables the instantaneous purchase of goods and services through divided payments within a specified period, commonly without any interest fees. Compared to credit cards, BNPL is more convenient; however, this convenience comes at the expense of increased fraud targeting these schemes.
The Festive Season Trap
In 2025, alongside the holiday shopping rush, scammers took advantage of BNPL by masquerading as customer support representatives. They convinced customers that their Pay Later account was essential, luring them into giving up their confidential OTPs. Strangely enough, people were victimised while they were trying to safeguard themselves from fraud.
Types Of BNPL Scams
BNPL (Buy Now, Pay Later) scams are evolving fast, and scammers are using clever tricks to exploit people financially and emotionally. Here’s a list of common scams you must know to stay one step ahead.
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SBI Card Scam: In this scam, interest rates (10-24%) offered to victims appear low, however, they are monthly instead of yearly. This helps the lenders stealthily take higher fees and pay massive amounts in overpayments.
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CIBIL Score Scam: This scam misleads the victims by stating that payments must be done immediately, else their credit scores will drop.
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KYC Phishing Scam: Criminals who claim to assist with enabling BNPL request Aadhaar and PAN numbers, which are later used to place fake orders or loans.
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Access to Gallery & Contacts: Some predatory apps request access to a user’s phone gallery and contact list. After they are given access, they can steal personal photos, which can be used for deepfake blackmail.
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Unlisted Stocks Scam: Through platforms like Telegram, people are offered fake buy now pay later schemes and are convinced to purchase unlisted stocks which don’t exist. Once the transaction is made, the scammers block and disappear.
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Fake BNPL Portals: Scam websites are created offering BNPL on e-commerce scams. Users are baited with phishing messages, and once the information or payment is submitted, they no longer provide services.
Read More: Understanding RBI's New Master Directions on Fraud Risk Management
How To Protect Yourself?
As always, staying safe from securities fraud starts with being vigilant. Safeguarding your identity and finances does not need to be stressful if you take the right proactive steps.
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Enable 2FA: Two-step authentication should be turned on for these features for BNPL accounts.
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Monitor Transactions: Account activity and statements should be monitored frequently.
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Beware of Phishing: Do not disclose personal or login information via email or phone unless you can validate them.
What To Do If You're Scammed?
If you’ve fallen victim to a BNPL (Buy Now, Pay Later) scam, quick action is key to limiting the damage. Don’t panic; just follow these steps immediately to secure your finances and report the fraud.
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Notify Your BNPL Provider: Most platforms have dedicated fraud resolution channels.
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Secure Your Accounts: Freeze your accounts and alert your bank immediately.
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File a Complaint: Report cybercrime via 1930 or the Cyber Crime portal.
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Educate Others: Share your experience. Awareness can help prevent others from becoming victims.
Conclusion
The development of technology brings about new advances as well as new threats. As an example, BNPL scams provide the modern consumer with serious reasons for concern. Scammers are improving every day, so it’s essential to stay alert and proactive.
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