FinTech: Klarna Suffers Severe Technical Issue; On Track For New Funding

May 28, 2021 | FinTech, Venture Capital
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A bug in Klarna’s mobile app lets users log into other customers’ accounts.

Klarna, the Swedish fintech famous for its Buy-Now-Pay-Later (BNPL) offering, suffered a major technical issue with its app on Thursday morning. Several users complained that when they attempted to log into their accounts, they entered other customers’ accounts. (PC)

Klarna shuts down its app

Irate users complained that they could view details of other accounts including personal information, postal address, purchases, and payment methods. Even portions of bank details were revealed.

What’s more, if a person logged out and logged in again, a different user’s data would be exposed.

The firm thereupon locked down its app.

According to Bleeping Computer, the app now displays: “Sorry, the Klarna app is currently down for maintenance.”

The company apologizes

In a statement on the bug, Klarna said: We are sad and frustrated to inform you of a self-inflicted incident, that for 31 min affected not more than 9,500 of our app users. The bug led to random user data being exposed to the wrong user when accessing our user interfaces. It is important to note that the access to data has been entirely random and not showing any data containing card or bank details (obfuscated data was visible). Even though GDPR would classify the information visible as “non-sensitive”, for us, all data is important. We are taking this incident very seriously and we will work tirelessly to regain the affected consumers’ trust.”

The company subsequently (11.20.42 am CET) updated that “the error was deemed to be contained and fixed.”

Technical bugs notwithstanding, Klarna is still on track for yet another round of financing, CNBC reported.

SoftBank-led funding

A new round of funding that would value it at more than $40 billion is on the anvil for Klarna.

The amount of funding is less than $1 billion, but the round would likely be led by SoftBank. Multiple other investors would also participate, the CNBC report said.

The startup previously raised $1 billion in March at a valuation of $31 billion.

Related Story:    Klarna’s Funding Binge On Course For A $1B Raise

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