A number of reports have circulated suggesting Klarna may have experienced a data breach, with differing claims and speculation. We want to take this opportunity to share openly and transparently what happened. 

A technical issue has affected a very small subset of Klarna users, whose recycled phone numbers were not immediately detected by our systems. Current estimates are that less than a few thousand users could potentially be affected. We will contact each consumer who has been affected. 

What is the media reporting about?

When someone gives up their phone number - maybe changing providers or getting a new one - the old number is eventually reassigned to another person by the provider. This can cause issues for services that use phone numbers for identity verification or login, and is a challenge faced across the tech industry.

Klarna uses advanced systems and algorithms, including device fingerprinting, behavioral analysis, geolocation, and dynamic risk assessment, to detect recycled phone numbers. These measures ensure that even in rare edge cases, we identify the vast majority of recycled phone numbers. 

Senior management was informed of a technical issue related to recycled phone numbers, and the underlying issue has been fully resolved, by implementing additional verification methods to further protect our customers.

Who was potentially  impacted?

This issue has affected a very small subset of Klarna users, whose recycled phone numbers were not immediately detected by our systems. Current estimates are that less than a few thousand users could potentially be affected. 

The data that may have been exposed for the limited number of affected consumers is personal information such as for example name, email and address. No card details have been exposed. This was not linked to any specific device, payments service, app version, or operating system.

What are the next steps?

We’re continuing to investigate this incident thoroughly. 

Deserving your trust means having both strong technical safeguards and sound organizational practices. We’re committed to both. Please know that your trust is most important to us.