※ BNPL & Loans
We protect and defend BNPL & Loans companies and their customers using a single API and the power of real-time mobile intelligence.
The BNPL & Loans sector is under constant threat from sophisticated fraud schemes and evolving cybersecurity challenges.
The BNPL and loans sector continues to grow, driven by consumer demand for convenient and flexible financial solutions.
A growing number of consumers prefer BNPL over traditional credit options due to its simplicity and lack of interest charges. This trend is especially prevalent among Millennials and Gen Z.
Major retailers and e-commerce platforms are increasingly partnering with BNPL providers to offer these payment options at checkout, further driving adoption.
However, this growth needs to be tempered with robust security measures to safeguard against the ever-present threat of fraud.
Sekura.id helps BNPL & Loans companies to stay ahead of emerging threats and ensure the integrity of the digital lending ecosystem.
Global size of BNPL market in 2023*
Size of global BNPL market by 2030*
Rise in BNPL fraud attacks in 2022**
**SEON **fortune.com
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Just some of the unique challenges BNPL & Loans companies face:
New Account Abuse: Fraudsters often exploit the ease of setting up BNPL accounts by using stolen identities. This method is facilitated by inadequate Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, allowing scammers to gain initial credit lines easily.
Synthetic Identity Fraud: This form of fraud involves combining real and fake information to create a new identity, costing the industry around $6 billion annually. These synthetic identities often mimic legitimate consumer behavior, making detection difficult.
Account Takeovers (ATOs): Fraudsters use techniques like credential stuffing, phishing, and SIM swapping to hijack BNPL user accounts. This allows them to make unauthorized purchases, leading to significant losses for BNPL providers.
Fraudulent Chargebacks: Involves users or fraudsters making purchases and then falsely claiming they did not authorise the transaction, leading to chargebacks and associated costs for the BNPL providers.
Never-Pays Fraud: This occurs when fraudsters, using stolen or synthetic identities, make large purchases without any intention of paying back, resulting in direct financial losses for the providers.
Transaction Laundering: Fraudsters use approved merchant credentials to process transactions for undisclosed businesses, often involved in illegal activities, posing significant money laundering risks.
How Sekura.id Addresses These Challenges
Sekura.id’s suite of products offers comprehensive solutions tailored to meet the specific needs of the BNPL and loan companies we work with using the superpower of the SIM card.
The SIM card, a ubiquitous and secure element in mobile communication, serves as the cornerstone of Sekura.id’s solutions. Unlike traditional methods, SIM-based authentication and verification provide unparalleled security and convenience.
Unhackable and Unspoofable: The inherent security of SIM cards makes them resistant to hacking and spoofing attempts, offering a robust layer of protection for banking transactions.
Sekura.id use the super of the SIM with Mobile Operator data in real time to build a picture of your customer. That’s identifying them, matching their details, doing KYC and AML and giving you the unique confidence you need when weighing them up a a transaction-worthy customer or not.
One area where Mobile Identity excels for BNPL & Loans companies is in allowing younger people with thin credit files to demonstrate that they pay their mobile bills fastidiously which may be the only proof they have of credit-worthiness.
Authentication with SAFr Auth
Buy Now Pay Later services are revolutionising the way consumers shop, offering flexibility and convenience.
However, BNPL companies face significant challenges including fraud prevention, identity verification, and securing transactions. Ensuring a seamless user experience while maintaining stringent security standards is crucial for the success and growth of BNPL services.
SAFr Auth is Sekura.id’s premier authentication solution designed to address the security needs of BNPL companies. It provides:
- Enhanced Security: Use a unique passwordless verification to prevent unauthorised access and ensure that only legitimate users can complete transactions.
- User-Friendly Experience: Offers a seamless login process without compromising on security, reducing friction for users and improving customer satisfaction.
- Fraud Prevention: Monitors and detects fraudulent activities in real-time, mitigating the risk of account takeovers and fraudulent transactions.
By integrating SAFr Auth, BNPL companies can significantly reduce the risk of fraud and build trust with their customers through a secure and intuitive authentication process.
Verification with Mobile-to-Person Match (MPM)
Mobile-to-Person Match (MPM) enhances the verification process by matching user details in real-time using data from their SIM card; it verifies the legitimacy of users by matching their mobile number to their identity. It provides KYC and AML data in real time
Key features include:
- Identity Verification: Ensures that the mobile number provided by the user matches their personal information, preventing identity theft, synthetic identity applications and fraud.
- Real-Time Validation: Performs instant checks to confirm the authenticity of the user’s mobile number, address, date of birth and many more attributes, enhancing the onboarding process and reducing delays.
- Enhanced Trust: Provides an additional layer of security, reinforcing trust between the BNPL provider and the consumer, particular the younger demographic more likely to use BNPL. MPM allows you to consider customers that diligently pay their mobile bill but have no other proof of creditworthiness.
MPM is particularly useful for BNPL services, as it ensures that users are who they claim to be, reducing the risk of fraudulent activities and widening the scope of your customer base.
Fraud prevention with real-time SIM Swap detection.
SIM Swap protection, and one that works in real time before fraudsters attempt identity theft, is crucial for preventing unauthorised transactions initiated through hijacked mobile numbers.
SIM Swap Protection safeguards BNPL companies from the rising threat of SIM swap fraud. This solution offers:
- Real-Time Alerts: Notifies companies of any SIM swap attempts in real-time, allowing for immediate action to prevent potential fraud.
- Customer Assurance: Enhances customer confidence by ensuring their mobile-based transactions and communications are secure.
- Seamless Integration: Easily integrates with existing BNPL platforms, providing an additional security layer without disrupting the user experience.
By implementing SIM Swap Protection, BNPL providers can protect their customers from fraudulent account takeovers, thereby enhancing trust and security.
The Superpower of the SIM card
The SIM card, a ubiquitous and secure element in mobile communication, serves as the cornerstone of Sekura.id’s solutions. Unlike traditional methods, SIM-based authentication and verification provide unparalleled security and convenience:
Unhackable & unspoofable
The inherent security of SIM cards makes them resistant to hacking and spoofing attempts, offering a robust layer of protection for banking transactions.
Many regulations and standards around mobile identity and authentication (e.g., eIDAS in the EU) recognise and recommend the use of SIM cards due to their robust security features.
Broad Coverage & Convenience
With Sekura.id’s services covering over 2.5 billion people globally, banks can ensure secure and reliable identity verification and authentication across diverse geographies.
What about eSIMs? With the advent of embedded SIMs (eSIMs), mobile identities can be provisioned and managed remotely, providing additional flexibility and security.
Cryptographic Capabilities
SIM cards come with built-in cryptographic capabilities, allowing them to perform encryption and decryption operations securely within the hardware.
They facilitate secure key management, ensuring that cryptographic keys are generated, stored, and used in a secure manner.
Isolation from Device OS
The security functions of the SIM card are isolated from the device’s operating system, reducing the risk of software-based attacks.Since the SIM operates independently of the device's OS, the attack surface for malicious software is significantly reduced.
Banking
BNPL & Loan companies trust Sekura.id to protect millions of transactions every month.
Last thing: You're not just buying fraud prevention, you're also gaining happy, loyal customers...
Sekura.id is redefining security in the banking industry through its innovative use of SIM-based technology. By addressing critical pain points such as identity theft, SIM swap fraud, and advanced phishing attacks, Sekura.id provides BNPL companies with powerful tools for authentication, verification, and fraud prevention.
These solutions not only enhance security but also streamline the user experience, ensuring that customers can access their banking services with ease and confidence.
