This type of identity theft is common on retail sites that allow payment services such as Klarna, Ladbuy or Clearpay. These are chosen because it’s easy to create an account using minimum information and with minimum checks involved.

Klarna offers three payment structures:

• Pay 30 days later.
• Pay in 3 i.e. spread the cost of your purchase equally over two months.
• This lets you split your payments into monthly instalments over 6-36 months. It requires a full credit check and can charge interest – representative APR 18.9%, currently.

Identify Theft

The scam works by criminals stealing your personal details and then using them to create accounts with providers such as Klarna.

Stephanie McDaid told the BBC she received a £30 Klarna bill out of the blue one day, although she hadn’t bought anything. After contacting Klarna, it was confirmed she was a victim of identity fraud.

When customers sign up to Klarna financing thee is a ‘soft’ credit check i.e. only very basic.

If you think you’ve been a victim of fraud and crooks have ordered goods in your name, check your credit report for any soft searches. Also report it to Action Fraud and contact the relevant company in question, e.g. Klarna, Ladbuy and Clearpay.

If you have any experiences with these scams do let me know, by email.