Fraudulent Transactions on the Rise: Public and Financial Institutions at Risk
Introduction
A staggering kr. 333 million was lost to credit transfer fraud in Denmark last year, with the average value of each fraudulent transaction reaching kr. 35,300. This alarming trend has left financial institutions and the public on high alert.
Credit Transfer Fraud on the Rise
According to a report by Danmarks Nationalbank, credit transfer fraud is increasing rapidly, with approximately 9,400 fraudulent transactions recorded in 2023 alone. Unlike payment card fraud, which typically involves unauthorized transactions using a lost or stolen card, credit transfer fraud often involves scams where account holders are tricked into making payments.
Scams and Fraudulent Activities
Financial institutions have reported that the majority of these scams occur through mobile and online banking, with fraudsters convincing victims to make transfers without realizing they are being scammed. This has led to financial losses totaling kr. 333 million, rivaling the value of payment card fraud in Denmark.
Identity Theft and Fraudulent Activities
The report highlights that credit transfer fraud is often linked to identity theft, where fraudsters obtain personal data such as CPR numbers, passwords, or MitID to commit fraudulent activities. In some cases, fraudsters may gain access to online banking accounts and make multiple unauthorized transactions, leaving victims with significant financial losses.
Prevention Measures
Financial institutions have taken steps to prevent these scams, but the public remains a key target for fraudsters. According to Finance Denmark, members of the public accounted for approximately 80% of the total fraud value in the first half of 2023, while business fraud accounted for just under 20%.
Recommendations
To combat this growing trend, financial institutions and authorities are urging cardholders to be cautious when using digital payment solutions like MobilePay. By staying vigilant and reporting any suspicious transactions, individuals can help prevent credit transfer fraud and protect their finances.
Key Statistics:
- Total value of credit transfer fraud in Denmark: kr. 333 million
- Average value of each fraudulent transaction: kr. 35,300
- Number of fraudulent credit transfers recorded in 2023: approximately 9,400
- Public accounted for approximately 80% of total fraud value in the first half of 2023
Recommendations:
- Be cautious when using digital payment solutions like MobilePay
- Monitor your account regularly for suspicious transactions
- Report any suspicious transactions to your financial institution immediately
- Stay informed about credit transfer fraud and scams through reputable sources