Financial Crime World

Rising Digital Fraud in Denmark: How Criminals Evade Two-Factor Authentication and Trick Account Holders

Denmark, a trailblazer in digital payments, has seen a surge in digital fraud. Over 92% of all citizen payments are now made digitally, but this digital revolution has created new opportunities for criminals (Clausen Brock, Marcus, Senior Retail Payments Economist at Danmarks Nationalbank). In this article, we explore the alarming trend of payment card fraud and credit transfer fraud in Denmark.

Payment Card Fraud: New Ways and Old Tricks

Payment card fraud reached approximately kr. 294 million in value in 2023, making up 0.369% of the total card turnover (Clausen Brock). Most fraud occurs on foreign websites, making newer security measures like two-factor authentication and European requirements a potential driving factor behind this trend.

  • New security measures and European regulations may have led fraudsters to develop new ways to obtain payment cards.
  • Relative card fraud in Denmark has risen, despite having a low fraud rate (0.20%) compared to the European average (0.26%) in 2021.
  • Sweden has also experienced a similar trend.

Credit Transfer Fraud: The New Frontier of Digital Fraud

Credit transfer fraud, facilitated by digital payment solutions like MobilePay, has also seen a rapid increase. In the first half of 2023, roughly kr. 333 million worth of credit transfer fraud was recorded, with victims primarily being members of the public (Finance Denmark).

  • Credit transfer fraud arises from scams that trick account holders into making unwitting transactions.
  • Cases of credit transfer fraud include fake investment opportunities that convince victims to transfer their funds to fraudulent accounts.

Staying Informed: Prevention Strategies and Reputable Sources

The increase in digital fraud in Denmark highlights the importance of staying informed and vigilant. For prevention strategies and more information on how to safeguard yourself against digital scams, consult reputable sources like the Danish Crime Prevention Council or Danmarks Nationalbank.

  • Stay informed and be vigilant to help protect your digital assets.
  • Refer to reputable sources for prevention strategies and accurate information.