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17 Jan 2022

Thereis now less than three months until all VAT-registered retailers are required to submit quarterly VAT updates and annual returns via the government's Making Tax Digital (MTD) system.

11 Jan 2022

Applicationsfor the Government's latest additional incentive payment of £3,000 opentoday (11 January 2022) for employers who have hired an apprentice(s) over the winter.

11 Jan 2022

Following an increase in counterfeit notes, the "Know your Scottish Polymer £50 notes" document assists retailers in determining whether the Polymer Scottish£50 notes they receive as...

11 Jan 2022

The Greeting Card Association (GCA) have created the 2022 Valentines DayToolkit full of resources to help retailers promote Valentine's Day in their stores and online.

6 Jan 2022

Research shows 45% of people are unwilling to use a bike if there is no secure parking at their destination. HUDJO fixes this problem by encouragingcyclists to hop on their bike and cycle...

6 Jan 2022

A rising demand for retail property to be used for leisure and hospitality businesses has given "renewed optimism" for some UK high streets and shopping districts, according to industry experts.

5 Jan 2022

Maybe* have rounded up the best social media posts of 2021 so you can take those lesson into 2022 and hit the ground running!

5 Jan 2022

This year will bring everything expected at iceBike* but in a digital format in a whole month of content from Monday 21st February all the way through to Friday 18th March.

16 Dec 2021

As a member of the cycling trade we want your opinion on what date Local Bike Shop Day should fall within the May Bank Holiday, and how you'd like to celebrate it!

16 Dec 2021

You can be a HUDJO host by using any existing secure space on your business premises. By keeping bikes secure you generate additional income and give people more reason to visit you.

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How fraudsters are exploiting customers using popular BNPL service providers

Posted on in Business News ,Brands & Products News , Cycles News

Improperly e-commerceregulated Buy Now Pay Later services aren't just growing in popularity among consumers, they're also proving to be a hit with criminals.

Retail finance, when used correctly, is an advantageous payment option for both retailers and consumers and it should continue to be so. It is specifically the BNPL providers performing soft credit checks where fraudulent activity is on the rise, which include Klarna, Afterpay and Affirm, according to fraud experts.

BNPL products are becoming increasingly popular among Gen Z's and Millennials, they are offered widely online by fashion retailers whereby they allow shoppers to split payments at checkouts or pay 30 days later interest-free. They've become massively popular in the U.S. and Europe, and generated almost $100 billion in transactions globally in 2020 alone.

Criminal gangs are exploiting weaknesses in the application process for BNPL loans, experts say, using clever tactics to slip through undetected and steal items such as bicycles, booze and video game consoles.

Martin Rehak, CEO and co-founder of Czech fraud detection start-up Resistant AI said that one of the vulnerabilities is BNPL firms' reliance on data for approving new clients. Many companies in the industry don't conduct formal credit checks, instead using internal algorithms to determine creditworthiness based on the information they have available to them.

Rehak said many scammers are stealing people's identities or taking over their accounts to evade detection, making unsuspecting victims foot the bill. He declined to name any specific companies being targeted, however, saying Resistant AI counts a number of BNPL businesses as clients.

Warnings of BNPL fraud are particularly timely as Black Friday kicks off the critical holiday shopping season next week. "There's going to be a huge amount of fraud hidden in there because they always lower their security checks during those events because they don't want it to impact sales," said Kevin Gosschalk, founder and CEO of fraud-prevention start-up Arkose Labs.

Consistent campaigning has now led to the UK Treasury launching a consultation into bringing the sector under regulation. The Treasury said that the consultation "sets out policy options to achieve a proportionate approach to regulation of BNPL".

Martin Lewis, founder of MoneySavingExpert.com, summarises the issue by saying retail finance "isn't automatically a bad thing to do" and that when done right it "can be a useful tool to help people spread costs."

The ACT and ActSmart, members of the Independent Retailers Confederation (IRC), has previously raised concerns about the improper regulation of BNPL providers such as Klarna, Openpay and LayBuy and the risks that they bring to potential customers.

Some debt charities argue that it is the retailer's responsibility to educate their customers of the risks being undertaken when committing to any BNPL payments. With a retailer's reputation at stake, as well as the wellbeing of their customers, it is imperative that businesses find a finance provider that they can trust and that is correctly regulated by the FCA.

The ACT have created a mini-series - Choosing the right finance provider, avoid the pitfalls - which assists retailers by highlighting what to look out for when choosing the right finance provider for you.

 

Train your staff to deliver finance effectively

Retail Finance Training, brought to you by Indie Retail Training, is a distance learning course ensuring your business sells using finance effectively and compliantly.

This course is designed for all owners and employees in a business that either currently, or plans to, offer retail finance as a payment method.

The course will teach you how to legally promote and use retail finance in-store, online and in all other forms of media. As well as covering the legal details this course also aims to make sure you maximise each sale using retail finance.

You can sign up and access a demo of the training site for FREE: https://demo.indieretail.training.

For the full course, ACT members receive preferential pricing with up to 50% off. Find out more about the full course.

 

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