Trends in Financial Crime in Sweden: Swish and Bank-ID Used in Fraudulent Schemes

Sweden’s increasing reliance on digital payment methods has created a new frontier for financial criminals. Frauds are being committed by using these tools in combination with internet banking to access victims’ accounts.

The Rise of Telephone Fraud (Vishing)

The most alarming trend is the surge in telephone fraud, also known as vishing or voice phishing, which has seen profits increase by 186% during the first half of 2021 compared to the same period last year. To mitigate the risk of falling victim to these scams, experts warn against sharing log-in details and passwords, particularly over the internet or via telephone.

Money Laundering through Swish Payments

Fraudulent activities often lead to money laundering through complex procedures involving Swish payments. Criminals use layering techniques, creating multiple transactions to conceal the source of funds, before converting the money into cash, cryptocurrency, or luxury goods.

Using Front Men in Money Laundering Schemes

The practice of using front men, individuals who allow others to use their accounts, is also common in money laundering schemes. To combat these illegal activities, law enforcement agencies are strengthening their efforts to prevent fraud and money laundering.

Anti-Money Laundering Operations in Sweden

In June 2020, the police launched a collaboration with Sweden’s five largest banks, known as SAMLIT (Swedish Anti-Money Laundering Intelligence Task Force), which has become an integral part of the country’s anti-money laundering operations. In May 2021, a new crime classification was introduced to facilitate efforts against fraud involving payment tools other than cash.

Staying Vigilant and Reporting Suspicious Activities

As financial crimes continue to evolve in Sweden, it is essential for individuals and businesses alike to remain vigilant and report any suspicious activities to the authorities to help prevent these illegal schemes from thriving. By staying informed and taking proactive steps, we can all play a role in combating financial crime in Sweden.