I’ve been wanting to write about Klarna for a while. The buy-now-pay-later company offer something I think need restrictions. Now I’ve been reading about Klarna fraud. How easy it is to set up an account, get things sent to you and then pay them off later. So easy in fact, people are using it as a scam and ruining other people’s finances.
What Is Klarna
Klarna describes it’s service on it’s own website as:
“Buy what you need today and pay later. Effortless, safe and fun.“
It is now payment option on many websites, mainly fashion. You can go onto Topshop, for example and place an order. You can spread the cost with no impact on your credit score and no interest. Sounds great in theory. However, these Klarna instalments that you have to pay, might be for something that you haven’t even bought.
Klarna Fraud
These ways of paying have been a honeypot for scammers. Abusing the system and getting product after product sent to their own home, whilst lumbering other people with the bill. The ability to get something for nothing is to much of an attraction for some. I read that someone got a bill for £30 when they had never used the service. To sign up to Klarna all your need is your name, date of birth, billing address, email address and phone number. There are easy ways to find out someone’s name, address and date of birth. Many of my friends know all three bits of this info. Then all you need to do is set up a fake email, get a free burner sim card and change the delivery address. There needs to be better checks and obstacles in place to stop fraudsters.
It Can Affect Your Credit Score
I’ve also read about how Klarna, whilst they state their service doesn’t affect your credit score, has ruined credit scores for various people. We must keep an eye on our credit scores and if there is an easy way that people can impact ours, it needs to be addressed and stopped.
Don’t Spend Money You Don’t Have
If you cannot afford it, you shouldn’t be buying it. Klarna and other buy-now-pay-later platforms are just encouraging spending of money people don’t have. Klarna describes itself as an alternative to credit cards however credit cards are checked. You’d be much better applying for a 0% credit card than relying on these BNPL platforms. They are often dressed up fancy fonts and look exciting on the web page. You might also trust them as they are a payment option on a brand website you’ve used before.
Keep an eye on your credit score and make sure to shred any paperwork you throw out. If you do use these BNPL schemes, just be careful. Is the potential hassle and not being able to pay the money back really worth a new dress?
