A group of first-time Zip customers in the United States have managed to defraud the buy now, pay later provider of about $10 million, raising concerns about the company’s risk controls and sending its stock price into freefall.
Zip shares lost almost half their value as the market opened on Friday, and were trading down 31 per cent at $1.42 at midday, after it said in a quarterly update that the fraud had hit transaction volume and new customer growth in July and August.
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