Swedish Financial Crimes on the Rise: Types of Fraud and Countermeasures

A surge in fraud has been reported in Sweden, threatening to undermine public trust in the payment system. According to the Swedish National Council for Crime Prevention, fraud offenses have increased by 44% from 2022, with card fraud and social engineering fraud seeing the biggest surge.

Card Fraud on the Rise

Card fraud, which involves the theft of card details without access to the physical card, has seen a significant rise, particularly online. To combat this, many online banks now allow customers to close their cards for online purchases and reopen them when needed.

Online banks offering card closure and reopening services
Increased awareness among consumers about online fraud

Social engineering fraud, on the other hand, typically targets the elderly through phone calls or text messages, where fraudsters claim to be from the victim’s bank and ask for sensitive information or BankID signatures. Banks have taken measures to prevent this type of fraud, including launching awareness campaigns and introducing delayed withdrawals in savings accounts to help victims stop transactions.

Awareness campaigns launched by banks
Delayed withdrawals introduced in savings accounts

Government Efforts to Combat Fraud

The government has also prioritized the fight against fraud, tasking Finansinspektionen with reviewing payment service providers’ fraud prevention methods and the Swedish Post and Telecom Authority with counteracting spoofing to limit fraud. A meeting between the government and bank heads was held in February to strengthen cooperation between banks and the police.

Government tasking financial authorities to review fraud prevention methods
Meeting between government, banks, and police to strengthen cooperation

Concerns over Cash Payments

Despite a decrease in counterfeit banknotes, the use of cash for criminal purposes remains a concern. Cash can be used anonymously, making it easier to conceal crimes or reinvest money from criminal activities. The Riksbank argues that amount limits could be a way to make cash payments more difficult for criminals while still allowing consumers and companies to use cash.

Concerns over anonymity of cash transactions
Proposal by the Riksbank to introduce amount limits on cash transactions

Awareness Initiative Launched

The Swedish Bankers’ Association has launched the Svårlurad initiative to raise awareness about social engineering and provide tips on how to protect oneself against fraud. The association has also submitted petitions to the government, including proposals for a fraudster register and rules to counteract spoofing.

Svårlurad initiative launched by Swedish Bankers’ Association
Petitions submitted to government with proposals for a fraudster register and anti-spoofing rules

Conclusion

As the number of reported fraud cases continues to rise, it is essential that individuals take steps to protect themselves and that financial institutions and authorities work together to prevent and combat these types of crimes. By staying informed and taking proactive measures, we can help maintain public trust in the payment system and reduce the impact of financial crime in Sweden.