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Sweden’s FSA Probes Klarna Over Customer Info Breach

Payments firm Klarna is under the microscope of Sweden’s financial watchdog, over reported violations of security laws, Reuters reported Monday (July 5).

On May 27, for around 30 minutes, users of Klarna were able to see other users’ data.

The report said that data didn’t include users’ card data.

The company called the breach a mistake, saying this was the result of “human error.” The company said the probe was “very much expected as part of our regular dialogue with the Swedish FSA and as always we approach this with full cooperation and transparency.”

“(We) will investigate whether Klarna has violated bank secrecy in connection with an IT incident in May where the bank’s customers were able to access information about each other for a limited time,” Sweden’s Finansinspektionen said in a statement.

According to the regulator, the issue about Klarna’s security would contribute to a larger survey announced back in March. That survey would allow for a look into generally how Klarna works with information and cybersecurity risks, Reuters wrote.

Klarna recently was the recipient of a venture funding round of about $639 million.

The deal put the company’s valuation at a total of $45.6 billion and saw the company planning to use its new funding for expanding globally and drawing in new customers.

The valuation also exceeded that which said the company would be valued at $40 billion.

There was a funding round from March, fetching $1 billion, which valued it at $31 billion.

Klarna, which was founded a decade ago, has seen a rapid-fire growth particularly in the U.S., with buy now pay later (BNPL) plans growing exponentially because of COVID-19 and its ensuing shift toward digital payments.

“Consumers continue to reject interest- and fee-laden revolving credit,” said Klarna Founder and CEO Sebastian Siemiatkowski. “Klarna’s more transparent and convenient alternatives align with evolving global consumer preferences.”

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