Image courtesy of CNBC
Arkose Labs CEO Kevin Gosschalk told CNBC that criminals are increasingly targeting buy now, pay later platforms because they have "softer" security controls than established banks, making them a lucrative and relatively easy target for fraud. Gosschalk noted that fast-growing fintechs are especially vulnerable because early-stage companies typically prioritize growth over security infrastructure, creating gaps that criminals exploit to steal goods ranging from food to electronics. The CNBC investigation found fraudsters exploiting weaknesses in BNPL approval processes — which often rely on algorithms rather than formal credit checks — to slip through undetected across platforms including Klarna, Afterpay and Affirm.
