Pensioner Peter Blyth had never heard of Carlena until he received a letter from the company claiming he owed him hundreds of pounds.
Peter is shocked to receive a demand of £269 from Buy now, pay later firm last week.
karnas Peter that he owed money for purchases from online retailer Choice Store in May.
But the 69-year-old ex-business owner from Milton Keynes has never been a customer of Klarna and never shopped at that store.
After calling the company’s helpline, he came to know that a fraudster had used only his name and address Set up an account under his identity.
“My name and address were the only details that were mine – but someone else’s email address and phone number were logged,” Peter said.
“What amazes me is how a fraudster is able to open an account with very limited information.”
Klarna gives to shoppers Spread the cost of their purchase in three interest free installments And it’s available at major stores like ASOS, H&M and New Look.
To sign up for an account, you will need to provide your name, email address, and phone number.
Before opening an account, Klarna will do a few checks to make sure it’s you.
You will then need a billing address and a debit or credit card to make a payment.
Although no payment details were linked to the account – meaning his bank details were not compromised – Peter is “very concerned” that a fraudster was able to sign up with some of his personal details so easily at Klarna. was.
He’s also concerned about his credit score – that’s because there are Klarna transactions You are now logged on to your credit filesWhich means lenders can see any late payments.
“If you try to open a bank account, you have to go through a lot of hoops and checks – you need ID and utility bills, for example,” he said.
“You can’t just walk anywhere and open a bank account.
“The question is, what did Klarna check?
“They say that on their website they do a lot of checks to protect Klarna customers from fraud.
“But it doesn’t mention what checks are involved in opening an account – you would expect it to be as stringent, but clearly it is not.
“The amount Kalarna is chasing could be just one payment. There could be a whole string of payments to follow.”
A spokesperson for Klarna apologized to Peter and confirmed that his account had been suspended and closed following an investigation.
He added: “Fraud is an industry wide issue and unfortunately, sometimes, fraudsters manage to defend us.
“When this happens, Klarna’s fraud policy ensures that customers never pay for purchases they haven’t made, and we take each case as an opportunity to further improve our systems and prevent this from happening again. see as.”
Resolver consumer expert Martin James said online financial services can be convenient if the identification process is “flawed” so crooks will “get into the system and take advantage of it”.
He added: “It is important that Klarna and other online financial service providers close these loopholes as soon as possible and go out of their way to ensure that no one’s credit is damaged as a result of the fraudulent actions.”
Andrew Hager, personal finance specialist at MoneyComes, said: “I am stunned that Klarna will actually allow this to happen.
“If it’s really that easy, the fraudsters will be rubbing their hands and Klarna will be left with a huge pile of debt.”
What to do if you are the victim of fraud
Peter’s isn’t a victim of Buy Only Now, Pay Later fraud – there are hundreds of similar complaints on social media.
Customers were warned of crooks who signed up for the last year Buy now pay later services in their name.
While fraud cases in general are on the rise, according to the Office for National Statistics, it rose 36% in the year to September 2021, to 5.1 million.
if you feel like you’ve been cheated onCall your bank immediately using the number on the back of the card.
You Should Tell Action Fraud – Report It Online or Call 0300 123 2040 (Monday to Friday, 8 AM to 8 PM). This will tell the police and give you a crime reference number.
Using a credit card when shopping online gives you more protection because you are covered under the Consumer Credit Act, which states that you are entitled to a refund if items are not delivered or not as described.
If you are not happy with the way your complaint is handled, you can make a complaint to the Financial Ombudsman Service.
If you’re concerned about your credit score being affected as a result of fraud, you can get it checked for free.
There are three credit reference agencies you can go to to check your score for free:
- Equifax: you can Check and report your score Free for the first 30 days, after which it’s £7.95 per month.
- the user: You can check your score for free using this online service, but if you want check your report Yourself, you can do it for free using just a 30-day trial, after which you’ll be charged £14.99 per month.
- TransUnion (formerly Call Credit): you can sign up for credit karma service Free to get unlimited access to your reports and scores for a lifetime.
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