Business · Companies · 1 hr ago
Zip Shares Halve After Company Flags US Fraud-Related Costs
Zip Co.
shares roughly halved after the Australian payments firm flagged new costs.
The company provides payment services and is based in Australia.
The expenses relate to an external fraud event in the United States.
Zip said the costs total A$10.1 million, or US$7.1 million.
The market reaction shows the costs weighed on shares, though the available details do not explain the fraud event itself.
No further action or timeline was specified.
Zip shares fell as much as 50% after the Australian payments company reported a US fraud event that cost A$10.1 million.
The fraud involved people using legitimate credentials to open accounts and make transactions that went unpaid.
Zip said the incident temporarily slowed transaction and customer growth as it introduced measures to contain it.
The company also reported higher bad debts, while cash earnings rose 3.4% to $65 million.
Zip reaffirmed its FY27 guidance, including forecast cash earnings of $340 million.
- Who
- Zip Co., an Australian payments firm.
- What
- Its shares fell sharply after it flagged A$10.1 million in costs related to a US fraud event.
- When
- Friday, October 23, 2026.
- Where
- The fraud event was in the US.
- Why
- People used legitimate credentials to open accounts and make transactions that went unpaid.
This story does not have two clearly opposing sides.
Zip identified an external fraud event in the US and introduced measures to contain it.
Zip released its first-quarter trading update, and its shares fell as much as 50%.
- Fraud-related expense
- A$10.1 million ($7.1 million)
- Share-price fall
- As much as 50%
- Group net bad debts
- 1.97% of transaction volume
- Cash earnings
- $65 million, up 3.4%
- FY27 cash-earnings guidance
- $340 million
2 sources
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