TikTok’s viral 'Klarna Glitch' just made their massive IPO Lawsuit nightmare worse

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00:00If you've been on TikTok or Telegram lately, you might have seen people flexing stacks of cash,

00:04claiming they found a new money glitch. They call it the Klarna method, and they claim it's an easy

00:09way to get free iPhones, Playstations, and designer clothes without spending a dime.

00:13But let's be very clear, this isn't a glitch or a hack, it's just old-school identity theft

00:18rebranded for Gen Z. To understand the scam, you have to understand the tool. Klarna is a massive

00:24Swedish fintech company famous for its buy now, pay later service. It allows legitimate shoppers

00:30to slip purchases into interest-free installments like their popular pay-in-for option, or even

00:35delay payment for 30 days. And Klarna even integrates directly with major retailers to make checking out

00:41seamless. But scammers have found a way to weaponize this convenience. On TikTok, videos indicate this

00:47specific wave is originating out of Detroit, and of course the people teaching this quote glitch

00:52are scammers who aren't using their own information. Instead, they purchase stolen data,

00:57known on the dark web as fools, which includes real people's names, social security numbers,

01:01and addresses. The scammers then use the stolen info to open a fresh Klarna account,

01:06and opening these accounts is often successful because Klarna frequently does, quote, soft checks

01:11for smaller amounts to make the checkout process fast, which allows scammers to bypass strict security.

01:17Once the account is open, the scammers max out the credit limit immediately, in-store or online.

01:23And we aren't talking about small purchases. In one viral video that has been re-shared across

01:28social media, you can actually see a crew testing this out in real time. And the result is the scammer

01:33gets the goods, which they quickly flip for cash. Meanwhile, the bill goes to the unsuspecting victim.

01:39Because the scammer never intends to pay the pay later installments, the account goes into default.

01:44So for the victim, who might be a random person across the country, they often don't find out

01:49until debt collectors start calling. This causes the victim's credit score to tank, dropping by

01:53hundreds of points, which can make it impossible for them to rent an apartment or even buy a car in

01:58the future. And while these scammers are posting videos bragging about eating off Klarna, authorities

02:02warn this is federal wire fraud, which can result in up to 20 years in prison. And this isn't new.

02:08We saw the same playbook recently with the viral Chase Bank glitch and the Cash App glitch.

02:13In every single case, people claimed to have found a loophole, but they were actually committing

02:17check fraud or falling victim to the scam and getting their own accounts drained.

02:22So if you see someone selling a Klarna Bible or a Method for $50, run. There is no such thing as

02:27free money, just stolen identities and future felonies. As for Klarna, this fraud wave couldn't

02:33have come at a worse time. According to reports, Klarna is currently facing multiple lawsuits that

02:39paint a chaotic picture behind the scenes. Following their September 2025 IPO, investors filed

02:44the securities class action lawsuit, alleging Klarna downplayed the risks of credit losses.

02:50Basically, the company is being sued because too many users, including these scammers, aren't paying

02:55their bills, causing stock prices to drop. On top of that, back in March, the company faced claims

03:01that their browser extension steals commission from creators. And in December of 2024, Reuters reported

03:07that a review of the company found significant deficiencies, revealing that Klarna failed to

03:12properly assess how its platform could be used for money laundering or even terrorist financing.

03:17So while scammers think they're eating off a glitch, they're actually just adding fuel

03:21to a massive legal fire. So is this the end of the buy now, pay later era? Share your thoughts

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