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Lending and BNPL Fraud Prevention for Modern Risk Teams

BNPL and lending fraud

Approve borrowers fast, deter all financial crime

Verify customers, screen for fraud, and monitor activity across the full lending and BNPL lifecycle in one place.
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1.5B+
identities processed worldwide
240% ROI
payback in under 6 months, per Forrester TEI
94%
reduction in manual verification work
Verify genuine borrowers and shoppers
Let trustworthy customers go through fast, while risky users go through extra checks and questionnaires
Meet AML compliance requirements
Maintain your business reputation, stay compliant regardless of country or jurisdiction, and easily report suspicious activity
Prevent fraud before losses happen
Save costs and stay compliant with regulators by deterring even the most advanced fraud wherever it may occur

BNPL financial crime prevention at every lending decision point

Financial crime doesn't only happen at sign-up. It shows up at checkout, at disbursement, on the second loan, during repayment, and in the refund queue. Sumsub places checks at each of these points so risky behavior gets caught wherever it appears - all while keeping your decisions always audit-ready.

At application or sign‑up
At approval or checkout
At disbursement
At repeat borrowing
During repayment
At dispute or refund
Verify identity, screen devices, and spot duplicate or previously declined applicants before they enter your system. Catch fraud signals and run sanctions, PEP, and adverse media screening at the same time.
At application or sign‑up
At disbursement or purchase confirmation
During repayment

Grow lending and BNPL without growing financial crime losses

Get onboarding speed, fraud prevention, and AML in one platform.

Give every team one risk view

Fraud teams
Identify linked accounts, suspicious devices, synthetic identities, and repeat abuse patterns earlier.
Compliance teams
Keep AML checks, monitoring alerts, case notes, and audit trails in one place.
Risk teams
Support better approval, repayment, and escalation decisions with identity, device, transaction, and behavioral context.

Don’t take our word for it.
Here’s what our clients have to say

  • The Fraud Network Detection feature has significantly helped us identify groups of fraudulent users in emerging markets. By analyzing shared IP locations, devices, and fingerprints, we have been able to detect and prevent multiple fraudulent accounts operated by the same network.
    Michael Dare
    Michael Dare
    Fraud Investigator at iFAST Global Bank
  • Sumsub has made managing risks easier and helped us provide a better customer experience.
    Paul Chapman
    Paul Chapman
    Global Head of Financial Crime Operations at Wirex
  • With Sumsub, we’ve managed to reduce user fraud to practically zero. Since we began using Sumsub, fraud is just one less thing we’ve had to worry about.
    Amram Adar
    Amram Adar
    Co-Founder and CEO at Oobit
  • Identity Verification
  • Address Verification
  • Fraud Detection
  • Anti-Money Laundering

Need the Ideal Solution?

Choose G2's Top Pick

Optimize your fraud detection and response strategy, where cost reduction is achieved effortlessly. Avoid internal development expenses with easy configuration and pre-designed anti-fraud rules.

  • 73

    Net Promoter Score

  • 92%

    Ease of use

  • 90%

    Ease of setup

* According to G2 2025 Identity Verification Spring Report

FAQ

  • What is BNPL fraud?

    BNPL fraud is any attempt to get goods, credit, or refunds through a buy now pay later product without intending to repay, or while using someone else's identity or payment details. Common types of fraud in BNPL include synthetic identity fraud, account takeover, stolen card use, multi-accounting to bypass limits, refund abuse, and first party fraud where the real customer claims they never made the purchase.

  • What is loan stacking?

    Loan stacking is when one borrower takes out several loans from different lenders in a short window, often before any of them update credit bureau records. Each lender sees a clean file and approves. The borrower walks away with more credit than any single lender would have allowed, and default risk goes up sharply. It's a known issue in digital lending where speed of approval is the main selling point.

  • Why do BNPL providers need identity verification?

    BNPL approvals happen in seconds at checkout, which is part of the appeal for genuine shoppers and part of the appeal for fraudsters. Identity verification at sign-up and checkout cuts down on synthetic identity fraud, account takeover, and multi-accounting that would otherwise turn into bad debt or chargebacks. It also feeds the affordability decision, AML screening, and the audit trail regulators will expect once BNPL comes under formal supervision.

  • What compliance requirements apply to BNPL providers?

    It varies by market, but the common ground is AML screening (sanctions, PEP, watchlist, adverse media) at onboarding plus ongoing monitoring, and a clean audit trail of identity checks and decisions. Consumer credit rules are the bigger variable: the EU applies the revised Consumer Credit Directive (CCD2), the US has state licensing plus CFPB oversight, Australia requires a credit licence, and the UK is moving to full FCA supervision in 2026. The direction of travel everywhere is towards treating BNPL like other consumer credit.

  • How is BNPL regulation changing in the UK?

    The FCA will start regulating Deferred Payment Credit (the technical term for most BNPL products) on 15 July 2026, and lenders will need to be authorised by the FCA to provide BNPL from that date. The rules require proportionate affordability checks, clear upfront information about repayment terms, support for customers in financial difficulty, and access to the Financial Ombudsman Service if something goes wrong. Firms without existing consumer credit permissions can use the Temporary Permissions Regime, which opens for registration on 15 May 2026 and closes two weeks before Regulation Day, giving them time to get fully authorised while continuing to operate.