Financial Crime World

Financial Crimes on the Rise in Sweden: Swish and Bank-IDs Used as Tools for Fraudsters

Sweden’s increasing reliance on digital payment methods such as Swish and Bank-ID has led to a surge in financial crimes. These tools are often used in tandem with internet banks to access victims’ funds. Telephone fraud, also known as vishing or voice phishing, has skyrocketed over the past year.

The Alarming Trend

  • Financial crimes have increased significantly, with profits from fraudulent activities estimated to have jumped by 186% during the first half of 2021 compared to the same period in 2020.
  • The use of Swish payments and other digital payment methods has created a complex web of transactions, making it challenging for authorities to track down fraudsters.

How to Avoid Falling Prey

  • Experts warn against sharing login details and passwords, especially over the internet or via phone.
  • Be cautious when receiving unsolicited calls or messages asking for personal information.
  • Verify the authenticity of websites and applications before providing any sensitive information.

The Role of Front Men

  • Fraudsters often use front men - individuals who allow others to use their accounts for fraudulent purposes.
  • This practice is a major concern for authorities, who are working tirelessly to prevent financial crimes and money laundering.

Efforts to Combat Fraud

  • In June 2020, the police launched SAMLIT (Swedish Anti-Money Laundering Intelligence Task Force), a collaboration with the country’s five largest banks aimed at sharing information and combating money laundering.
  • A new crime classification was introduced in May 2021 - unlawful dealing with payment tools - designed to facilitate efforts against frauds involving payment methods beyond cash.

Staying Vigilant

  • As Sweden continues to grapple with this growing threat, it is essential for individuals and businesses alike to remain vigilant and take steps to protect themselves from the increasingly sophisticated tactics of financial criminals.
  • By being aware of the common tactics used by fraudsters and taking proactive measures to secure their finances, individuals can reduce the risk of falling prey to financial crimes.