Klarna Being Investigated by Regulator for Apparent Security Breach

Klarna, a top European Fintech, is under investigation by the Swedish regulator Finansinspektionen for a possible security breach and transgression of the bank secrecy act.

In a statement by Finansinspektionen, the financial regulator referenced an “IT incident” that took place in May 2021 where customers were able to view information about each other for a period of time. Finansinspektionen had already launched an investigation into Klarna’s cybersecurity protocols.

Finansinspektionen states that bank customers must know that their information is secure and the protection of privacy is paramount.

Reuters quoted a statement by Klarna on the investigation as being “very much expected as part of our regular dialogue with the Swedish FSA and as always we approach this with full cooperation and transparency.”

It was not immediately clear as to the ramifications of the breach and how it may impact Klarna.

Klarna is a multifaceted Fintech that also holds a banking license. Last month, it was reported that Klarna was looking to raise money at a $45 billion valuation making it one of the most highly valued Fintechs in Europe.

Klarna is expected to pursue an initial public offering in the US within the next year or two.

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