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Financial Crime and Cybersecurity Risks on the Rise in Sweden
A recent threat assessment report has sounded the alarm on the growing threat of financial crime and cybersecurity risks facing banks in Sweden. The report, compiled by the country’s banking industry, highlights the deteriorating security situation and the increasing sophistication of criminal actors.
Bank Robberies Down, But Other Threats On the Rise
According to the report, there were no bank robberies or cash-in-transit heists in 2023. However, ATM attacks increased to five incidents involving Bankomat AB’s machines. Furthermore, bank staff have reported an uptick in harassment, personal threats, and violence against them, with many employees fearful of representing their banks in legal contexts.
Insider Threats and Foreign Interference
The report also warns of the insider threat, where individuals with access to sensitive information can exploit their knowledge to facilitate illegal activities or manipulate financial flows on behalf of criminals or foreign states. Foreign states have been known to employ networks of insiders to gather intelligence, disrupt economies, and influence political decisions.
Cybersecurity Threats
Cybersecurity threats are also a major concern, with criminal and state-sponsored actors targeting the country’s financial institutions. Ransomware attacks have increased in number, although the impact has been limited so far. Denial-of-service attacks against banks continue, while the sabotage of critical infrastructure such as gas pipelines and telecommunications cables poses a growing threat.
Rapidly Evolving Threats
The report highlights the rapid exploitation of technical vulnerabilities by threat actors and the use of artificial intelligence for fraudulent purposes. Consumers and businesses are increasingly vulnerable to fraud, with even greater consequences, and this is also affecting the banking sector.
Frauds and Scams on the Rise
Fraud schemes have become more targeted and personalized, with bank customers and businesses subjected to a variety of scams, including:
- Vishing
- Smishing
- Investment fraud
- Romance fraud
- Credit fraud
- Use of straw men to enable these schemes remains a significant problem.
Money Laundering and Other Risks
Money laundering threats persist, linked to areas such as:
- Fraud
- Drug trafficking
- Tax crimes
- Companies being used as tools for financial crime
- Straw men hiding real operators
- Exploitation of welfare system, currency exchange, cash handling, cryptocurrencies, real estate market, luxury consumption, and gambling sector.
Cryptocurrencies and Terrorist Financing
The report also notes an increase in cases of suspected terrorist financing via cryptocurrencies, highlighting the challenges faced by banks in monitoring these transactions due to lack of information on how they are carried out and who is involved.
Sanctions and International Cooperation
As geopolitical tensions escalate, international sanctions have become a critical tool for exerting pressure on foreign policy. However, the complexity of sanctions has made it increasingly difficult for operators to understand and apply them, underscoring the need for greater information sharing and cooperation between stakeholders.
Conclusion
The report serves as a stark reminder of the evolving threat landscape facing Sweden’s banking sector and the importance of proactive measures to mitigate financial crime and cybersecurity risks.