Buy now, pay later fraud warning after crooks steal details to create accounts in your name
BRITS are being warned about fraudsters signing up for buy now, pay later services in their names.
The scam works by crooks stealing your personal details and then using them to create accounts with providers such as Klarna.
For example, 26-year-old Stephanie McDaid told she received a £30 Klarna bill out of the blue one day, although she hadn't bought anything.
She also received the parcel, a Topshop dress, as the crook accidentally sent it to her former address at her parents' home.
After contacting Klarna, it was confirmed she was a victim of identity fraud.
To use Klarna's pay later service, which defers payments for up to 30 days, shoppers only have to provide a name, email, date of birth, mobile and a billing address.
When customers sign up, they also undergo a soft credit check.
How to prevent identity fraud - and what to if you've been a victim
AMBER Burridge, head of fraud intelligence at Cifas, has shared the below tips on how to prevent fraud.
- Never share personal or financial details on email, texts or over the phone
- Provide as little information about yourself as possible on social media
- Never be afraid to challenge a request if you cannot confirm it is legitimate
- Remember that only criminals will try to rush or panic you into making a decision quickly
Martyn James of Resolver also suggests using secure password managers that will tell you if any have been compromised.
You should also check your bank and credit card statement and phone bill each month for suspicious transactions.
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.
You can follow our guide on how to check your credit score for free.
You should also report it to Action Fraud and contact the buy now, pay later firm in question, whether it's Klarna, Ladbuy or Clearpay.
In Stephanie's case, fraudsters had signed up for the service using her details.
Campaigners and consumer experts are now raising concerns about how easy it's become to sign up to pay now, pay later services in other names.
Alice Tapper, who runs the #KlarNAA campaign, told The Sun: "I have spoken to several hundred consumers about these issues - a proportion of those have been victims of fraud with similar stories [to Stephanie].
Buy now, pay later firms aren't currently regulated, meaning consumers can't go to the Financial Ombudsman if and when things go wrong.
Shoppers are being warned about spiralling into “unmanageable debt” after they spent £2.3billion through buy now, pay later services before Christmas.
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Meanwhile, the firms also "trick shoppers into spending more", Which? has warned.
Debt campaigners have also been left furious after Love Island stars plugged Klarna, getting Brits into debt.