Financing Fraud: A Growing Threat in Finland - Insights from the National Council for Crime Prevention’s Review

Financial fraud has emerged as a significant concern in Finland, with statistics indicating a startling increase in recent years. In response, the National Council for Crime Prevention appointed a working group in 2017 to investigate the current landscape of financial fraud targeting private individuals and propose prevention measures.

A Surge in Financial Fraud Cases

According to the Finnish police, reported fraud cases nearly doubled between 2010 (20,380 cases) and 2016 (40,416 cases) [fn1]. A particularly worrying trend is the surge in means of payment fraud, which has risen significantly in the same period [fn1]. Research on crime victims also suggests an increase in specific types of fraud and scams targeting individuals [fn2].

[fn1]: Finnish Police, Facts About Crime 2016 (2016). [fn2]: National Council for Crime Prevention, “Financial Fraud Prevention Review” (2018).

Main Types of Financial Fraud

The working group produced a crime prevention review focusing on three main types of financial fraud:

1. Online marketplace fraud
2. Identity theft
3. Fraud targeting older adults

Prevention Measures

With financial fraud on the rise, it’s essential to implement effective prevention strategies.

Collaboration between Authorities, Banks, and Organizations

The report emphasizes that banks and organizations must contribute to fraud prevention, as cooperation between authorities is not sufficient [1]. Key recommendations include:

• Active and proactive information sharing to prevent fraudulent activities
• Dissemination of information to various target groups through various channels
• Provision of safety advice to customers, particularly older adults

Online Marketplace Fraud

To reduce the occurrence of online marketplace fraud, the review advises marketplaces to:

• Furnish detailed instructions for users
• Enhance technical security arrangements

The authorities should raise awareness of risks associated with these scams, but confronting foreign companies involved presents a challenge [1].

Identity Theft

Identity theft, which will be further addressed with the EU Data Protection Regulation, requires a critical examination of practices in sending paper letters containing sensitive personal information [1].

Fraud Targeting Older Adults

Older adults are particularly targeted in financial fraud [2]. To prevent such fraud, professionals working with older adults, their families, and friends play a crucial role in sharing information on potential scams and instructing older adults on how to respond [1]. The police have also launched campaigns to inform citizens of these scams.

Individual Protections

Everyone has a role to play in reducing financial fraud. By setting spending limitations on accounts and payment cards and exercising caution online, individuals can protect themselves [1].

Conclusion

As the Finnish population ages and online transactions continue to grow in popularity, the challenge of preventing financial fraud escalates [1]. The international nature of financial crimes adds to the complexity of addressing this issue. However, recent statistics suggest that the number of reported fraud cases may be declining, thanks to successful information campaigns and changes to police reporting procedures [2]. Building upon this progress and maintaining a collective effort to combat financial fraud in Finland is crucial.

References

[1]: National Council for Crime Prevention, “Financial Fraud Prevention Review” (2018). [2]: Finnish Police, Facts About Crime 2016 (2016).