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Afterpay was in trouble and ha dto close down
Executive summary
Afterpay has not been reported as having been forced to close; it remains an operating BNPL service now part of Block/ Square since 2021 and continues to publish updates and reports [1] [2]. Recent coverage documents rising fraud risks and customer hardship concerns — not a shutdown — including a November 2025 Payments Dive report about merchants colluding with synthetic‑identity fraud that can leave Afterpay on the hook [3] [4].
1. Afterpay wasn’t described as “closed” in available reporting
Available sources note that Afterpay was acquired by Block (formerly Square) in 2021 and was delisted as a standalone stock because of that acquisition, but they do not say the company shut down; Afterpay’s newsroom remains active and status-monitoring sites list the service as operational [1] [2] [5]. If you heard “closing,” current reporting instead documents operational challenges and integration under Block rather than a complete shutdown [1] [2].
2. Fraud is the headline risk currently being reported
Payments Dive (picked up by Yahoo Finance) reported on Nov. 10, 2025 that Block/Afterpay executives described a new fraud pattern: bad‑actor merchants sign up for Afterpay and collude with synthetic‑identity consumers to make fraudulent purchases, leaving Afterpay responsible for losses [3] [4]. The report cites executives’ comments that AI and stolen personal data make creating multiple fake consumer profiles easier, amplifying the risk [4].
3. What that fraud risk means for users and merchants
The immediate consequence described in reporting is financial exposure for the BNPL provider (Afterpay/Block) and potential fallout for merchants and genuine customers if the company tightens onboarding or declines some users or retailers as fraud prevention [3] [4]. Available coverage does not quantify total losses or show that this risk has caused Afterpay to stop serving customers; it documents a threat and industry discussion about mitigation [3] [4].
4. Consumer‑harm concerns predate the latest fraud story
Consumer advocates and regulators have raised worries about BNPL products generating overextension and financial hardship. Financial Counselling Australia criticized Afterpay’s product changes in 2023 as risking more consumer debt, and U.S. reporting shows BNPL users often have other outstanding debts and late payments — context that informs scrutiny of any operational stress on BNPL firms [6] [7]. These critiques are about consumer outcomes, not a corporate shutdown.
5. Afterpay’s public posture: hardship policies and customer communications
Afterpay’s own help and newsroom pages show the company continues to provide customer support guidance, including a formal hardship policy and periodic consumer research and reports through 2025 — evidence of ongoing operations and an attempt to manage customer financial issues and brand messaging [8] [9] [10] [2]. That reinforces the distinction between service difficulties or reputational challenges and a permanent closure.
6. Alternative viewpoints and missing information
Payments Dive/Yahoo Finance present the fraud risk as coming from insiders’ and executives’ remarks at industry events; they frame it as a newly notable threat but don’t present independent loss figures or regulatory enforcement actions tied to a shutdown [3] [4]. Consumer‑advocacy sources stress financial harm to users from BNPL broadly, which could increase regulatory risks for providers [6] [7]. Available sources do not mention any definitive corporate insolvency filing, mass layoffs that close the business, or regulator‑ordered cessation of operations — those claims are not found in current reporting (not found in current reporting).
7. What to watch next
Monitor official Afterpay or Block communications (Afterpay newsroom/status) for service advisories and earnings or loss disclosures, and watch investigative or regulatory reporting for quantified fraud losses or enforcement actions that could materially change operations [2] [5]. Also watch Payments Dive/Yahoo Finance for follow‑ups on the synthetic‑identity fraud story and consumer‑advocacy outlets for data on customer harm trends [3] [4] [6].
Conclusion: claims that “Afterpay was in trouble and had to close down” are not supported by the provided sources. Reporting documents serious fraud risks and longstanding consumer‑harm concerns that could threaten profitability or require operational changes, but the evidence in these sources points to challenges and ongoing operations — not a company closure [3] [4] [1] [2].