Denmark’s Digital Payment Landscape: Navigating the Rise of Fraud and Scams

Denmark’s shift towards digital payment systems has significantly advanced, with over 92% of citizens’ payments being made digitally. This transition, however, has exposed new opportunities for fraudsters. With payment card fraud in Denmark reaching approximately kr. 627 million in 2023 and increasing instances of bank account transfer fraud, Danish authorities are encouraging consumers and businesses to remain cautious.

Escalating Digital Fraud in Denmark

The Danish National Bank’s latest analysis reveals the mounting trend in digital fraud in Denmark. In 2023, digital payment fraud reached an unprecedented level, accounting for:

• Payment card fraud: Approx. kr. 294 million
• Bank account transfer fraud: Approx. kr. 333 million

In contrast, physical robberies have seen a significant decrease, with no reported incidents in 2022 and 2023.

Evolution of Security Measures and Regulations

With the ongoing digitalisation and criminals’ evolving tactics, new security measures and regulations have been implemented:

• European rules for two-factor authentication: Enforced since January 2021 for all digital payments within the European Economic Area (EEA), protecting users against unauthorised transactions.

Prevalent Forms of Digital Payment Fraud

Despite these measures, fraudulent activities can be difficult to detect and prevent. Fraud primarily occurs in the following ways:

Payment Card Fraud

• Occurs primarily on foreign websites: Accounting for approximately 75% of the total recorded fraud.
• Methods like phishing and smishing: Criminals pretending to be from banks or Danish authorities, manipulating individuals into providing payment card details or personal information.

Bank Account Transfer Fraud

• Credit transfer fraud: Tricking account holders into authorising transfers to criminals, accounting for approximately 80% of the total fraud value.
• Common tactics: Fake advertisements, social engineering, and even impersonating financial institutions or government entities.

Safeguarding Digital Payments

With the majority of fraudulent transactions being authorised by account holders and appearing as regular transfers in their accounts, it is crucial for individuals and businesses to:

• Practice heightened vigilance: Regularly monitor transactions.
• Set up two-factor authentication: For all possible accounts.
• Limit access: To sensitive information.
• Never share: Your login credentials.

Ongoing Advice and Resources

The Danish National Bank and the Danish Financial Supervisory Authority offer ongoing advice and resources to help safeguard digital payments:

• Stay informed about potential threats and scams.
• Utilise available tools: Two-factor authentication, anti-virus software, and up-to-date operating systems.
• Report any suspicious activities: Immediately to your bank or the Police.