Financial Crime World

Banking Fraud Statistics in Sweden Show Decline Despite Rise in Digital Payments

Despite the growing trend of digital payments in Sweden, statistics show that card fraud has declined significantly in the country. According to recent figures from the Swedish Police Authority, the number of police reports regarding card fraud dropped by 27 percent during the first half of 2021 compared to the same period last year.

Decline in Card Fraud

The decline can be attributed largely to a significant reduction in card frauds without physical cards, which fell by 28 percent over the same period. This type of fraud typically occurs when criminals use stolen or fake credit card information for online purchases.

On the other hand, card frauds involving physical cards have remained relatively stable, with no significant changes observed in recent years. According to statistics, the majority of reported card frauds still involve physical cards, such as those used for cash withdrawals at ATMs or in-store transactions.

Factors Contributing to Decline

The decline in card fraud without physical cards can be attributed to the implementation of EU’s “Strong Customer Authentication” requirement, which came into effect in Sweden on January 1, 2021. This requires customers to provide identification using at least two of three factors:

  • Knowledge (e.g., password)
  • Possession (e.g., card or phone)
  • Unique characteristic (e.g., fingerprint)

Exceptions to the Requirement

However, there are some exceptions to this requirement, including low-value transactions and contactless payments in shops. Despite these exceptions, the overall decline in card fraud suggests that Sweden’s banking system is becoming increasingly secure for customers.

Conclusion

The statistics demonstrate a significant decrease in card fraud in Sweden, despite the rise in digital payments. The implementation of EU’s “Strong Customer Authentication” requirement has played a major role in this decline, making Sweden’s banking system more secure for its citizens.