Fraud protection promise

Klarna works continuously to prevent, identify, and mitigate fraudulent activity so that you feel safe and secure when making purchases using our payment options. We have fraud monitoring systems and processes in place to proactively mitigate fraudulent activity and we have regular contact with law enforcement, retailers, distribution companies, industry organisations and our customers to be one step ahead of fraudsters.

If you suspect that you have been a victim of fraud it is important that you

Klarna will work diligently with you to investigate your report of suspicious activity or a fraud attempt. Where this investigation confirms that you have been a victim of fraud (and you have not acted negligently, see more under section “When does this guarantee not apply”), rest assured that Klarna shall not expect you to pay for the fraudulent purchase.

Please read through this document carefully for information on how to report a fraud claim with Klarna and for information on exclusions to our Fraud Protection Promise.

Should you have a dispute related query with regards to a purchase you have made, we ask that you review the Buyer’s Protection Policy to assist with a resolution. You can find our Buyer’s Protection Policy

At Klarna, we have strong anti-fraud controls in place to protect our customers and prevent fraudsters from making unauthorised purchases. We cannot share all of these measures as this could educate those who wish to manipulate the system. The measures in place and those that we can share are as follows:

1. Risk engine

We have developed a sophisticated in-house risk engine from our experience over the past 15 years. When a shopper attempts to place an order, we check over one hundred data points as well as third-party vendors for verification.

2. Identity Checks

We verify the identity and address of all our customers against external data sources including a credit check. This varies between a soft and hard check, dependent upon the Klarna product used. If we can’t get sufficient identity confirmation from the independent data providers, we reject the transaction.

3. Authentication Checks

For “higher risk” purchase attempts, our fraud risk tools may require further authentication checks. Here we request additional information from customers to verify their identity using methods such as knowledge based challenge questions.If we detect that a fraudster is trying to use another individual’s details to buy something with Klarna, our fraud team will do everything they can to stop the transaction and protect the individual’s details from further exposure within Klarna. We work with our retailers and logistics providers to prevent delivery and intercept parcels if they have already been dispatched, however, like with all payment providers, this isn’t always possible.

There’s lots of useful information available to help you protect yourself against fraud. Here are a number of recommendations:

• Never give out your personal details to someone who has called you unexpectedly. This includes your account information and passwords or PIN – Klarna or the Police will never call you and ask for this type of information.

• Never download any software onto your PC or mobile phone when asked by someone over the phone or by email – even if you think you are speaking to a trusted organisation.

• If you are unsure about someone who has called you claiming to be from the bank or another company, hang up and call back on the company’s published telephone number.

• Keep your personal information secure when using your card over the phone, on the internet, or in shops by ensuring that others can’t overhear you or see your information.

• Use a redirection service when moving to a new home such as the one provided by the Royal Mail as well as informing your bank, card company and any other organisations that require your new address.

• Destroy unwanted documents including bills, bank statements or post that’s in your name, preferably by using a shredder.

• Provide as little personal information about yourself on social media as possible and only accept invitations from people you know.

• Be careful if other people have access to your post. Contact Royal Mail if you think your post is being stolen.

• Cancel any lost or stolen credit or debit cards immediately.

• If your passport, driving licence, cards or other personal information have been lost or stolen, immediately contact the organisation that issued it.

There are a number of organisations which provide further information on how you can best protect yourself from online and financial fraud. Klarna recommend these resources:

• https://www.cifas.org.uk/individuals
  – An independent, not-for-profit organisation working to reduce fraud and related financial crime in the UK.

• https://takefive-stopfraud.org.uk/
  – A national awareness campaign led by UK Finance and backed by Her Majesty’s Government.

• https://www.citizensadvice.org.uk/consumer/
  – Provide consumers free, confidential information and advice to assist with financial, legal, and consumer problems.

• https://www.actionfraud.police.uk/
  – UK’s national fraud and internet crime reporting centre.

If you think you have been a victim of fraud, there are a number of quick and practical steps to consider.

First, please consider if you may have selected Klarna at the checkout at any of our partnered stores. You can find all the brands we work with

Second, you could also check if you have received any emails from Klarna on or around the date of the purchase. Within the email communication from Klarna it should be clear which store the purchase was made with and what items were purchased.
If you still do not recognise the purchase and you believe you are a victim of fraud you should

Klarna will work diligently with you to investigate your report of suspicious activity or a fraud attempt. Where this investigation confirms that you have been a victim of fraud, rest assured that Klarna shall not expect you to pay for the identified purchase.

You may also wish to report the fraud attempt to

In order for the Fraud Protection Promise to apply, you must not have played any part in, nor have any awareness of the fraudulent activity taking place. You must also be willing to assist Klarna in the investigation of a fraud claim.

The Fraud Protection Promise does not apply in situations where you have:

• Active involvement in committing the fraud which has taken place.

• Not taken reasonable steps to protect your Klarna account or personal information, thus enabling the fraud to take place.

• Refused to assist Klarna in the investigation of the fraud, including the refusal to provide further information or documentation, on request from Klarna.

• Attempted to abuse the Fraud Protection Promise.

The Fraud Protection Promise shall be applicable to all fraud reports from 1st January 2020.

The conditions of the Fraud Protection Promise may be updated in future to protect against abuse or to help Klarna prevent and prosecute fraud. We may also make adjustments to reflect guidance or requirements from regulators or enforcement authorities.

If you are a victim of fraud relating to an authorised purchase using one of Klarna’s payment options and a payment has been taken from your credit or debit card or your issuing bank account, we kindly ask that you contact your card/account issuing bank directly to raise a payment claim and resolve your dispute.

In the event that our investigations confirm that you have been a victim of fraud but no payment has been taken, rest assured that Klarna shall not expect you to pay for the fraudulent purchase.