Financial Crime World

Title: Sweden Wakes Up to Rising Financial Crime Trends: Card Fraud and Social Engineering on the Rise

Sweden’s pride and trust in its payment system are under threat as financial crimes continue to rise. According to the Swedish National Council for Crime Prevention, fraud was the most increased crime category in 2023, with a:

  • 44% increase in card fraud and social engineering fraud cases

Figure 10: A Steep Rise in Card Fraud and Social Engineering Fraud Cases

A Steep Rise in Card Fraud and Social Engineering Fraud Cases

Elderly Targeted by Social Engineering Scams

Despite preliminary statistics for 2023, the surge in fraud, particularly social engineering and card fraud, raises concerns among Swedish authorities and financial institutions. Elderly citizens have become frequent targets of social engineering scams. Fraudsters mislead victims into sharing their BankID credentials or sensitive information through phone calls and text messages.

Combating Social Engineering Fraud

To combat social engineering fraud and protect consumers, the Swedish Bankers’ Association and banks have initiated several measures:

  • Launch of the Svårlurad initiative: Raising awareness of social engineering tactics and safeguarding individuals against potential threats.
  • Petitions to the Government: Introducing a fraudster register and combating mobile and telephone number manipulation to hinder fraudsters.
  • Nordea’s New Savings Accounts: Delayed withdrawals to ease the process of stopping potentially fraudulent transactions.

Swedish Government’s Role

The Swedish government is taking a stand against financial crimes:

  • Finansinspektionen review (December 2023): Evaluating how payment service providers address fraud prevention efforts.
  • Swedish Post and Telecom Authority’s role (January 2024): Counteracting spoofing to reduce fraud instances.

Downward Trend in Card Fraud Cases with Strong Customer Authentication

Although the EU mandates strong customer authentication for card transactions, and there has been a downward trend in card fraud cases, instances of card fraud where the fraudster does not have the physical card have increased. These fraudsters primarily target online transactions in countries with less stringent authentication processes.

Decrease in Counterfeit Banknotes

The number of counterfeit banknotes submitted to the police has dwindled since the historically high mark of 6,629 in 2020 (down to 2,179 in 2023). Although Swedish banknotes have advanced security features, the decreasing usage of cash increases the risk of counterfeits being circulated.

Prioritizing the Fight against Criminal Economy

Continuing to accept cash at stores and other companies without interruption is crucial for preserving cash transactions and hindering the criminal economy. Amount limits can be a viable solution to maintain cash transactions while minimizing the criminal economy’s influence.

Conclusion

Stakeholders must remain focused on prevention efforts and collaborative initiatives to safeguard consumers and preserve trust in Sweden’s payment system.