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Updates on Backpack Credit and Referral System

Hey Backpackers, Have some updates for you regarding our referral and Backpack Credit system.

We all love and use Backpack’s amazing credit and referral system. I haven’t missed the photos you’ve posted swanking the amount you earned by sharing Backpack with your friends and I loved it! But at the same time this feature was turning into a curse: a few bad actors were taking advantage of the system and were committing fraudulent activities. The situation deteriorated to a level where we were on the verge of shutting down the referral system itself. But then we thought, this wouldn’t be fair to the genuine Backpackers – most of whom are awesome people and using the system in the right manner.

This thought led to an intense week when we put our heads together and brainstormed through quite a few solutions to prevent the fraud and keep referral alive. Most of these solutions centered around identity verification i.e. you securely upload a digital image of your passport or national ID and we cross-check that against the government database to confirm your identity. In this way the bad actors can’t have multiple fake accounts to game the system. But at the same time a lot of our users do not have passport or national ID and cross-checking them is an expensive process.

Hence we took the idea of ID verification and combined it with simple risk management system to come up with our current model. This fraud prevention model is a simplified two-fold system:
Shoppers can only pay upto 50% of the cost with Backpack c

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