Types of Financial Fraud Emerge in Sweden: Counterfeiting, Card Frauds, Online Scams, and More
Counterfeit Banknotes Remain a Concern
Despite the introduction of advanced security features on Swedish banknotes, counterfeits continue to circulate. According to recent statistics, the number of counterfeit banknotes found was high in 2020 but decreased in 2021. The majority of these counterfeits are simple copies of 500-krona notes.
To avoid falling victim to counterfeit banknotes, individuals should familiarize themselves with the security features on Swedish currency:
- Security strip
- Color-shifting image
- Watermark
- Intaglio printing
- Microtexts
Card Fraud Remains a Concern
While card fraud remains at relatively low levels in Sweden compared to other European countries, it is still a concern. Card fraud often occurs when cards are read during payment or inserted into ATMs.
The recent implementation of EU regulations requiring strong customer authentication has contributed to a decline in card fraud cases.
Online Fraud and E-commerce Concerns
In the e-commerce sector, fraudulent activities targeting invoice payments have become more common. To address this issue, the government proposed legislation aimed at increasing consumer protection, including mandatory strong customer authentication for online invoice payments.
Digital Payment Services Face New Forms of Fraud
The use of digital payment services such as Swish, BankID, and others has also led to new forms of fraud. These services are being exploited by criminals who gain unauthorized access to users’ accounts.
To protect themselves, individuals should never share login details or passwords.
Fake Confirmation of Sent Payments Emerges
A novel form of fraud against businesses emerged in 2022, involving fake confirmation of sent Swish payments. To combat this issue, the Swedish Trade Federation and Swish recommend that companies use the Swish business app or integrate Swish Commerce into their point-of-sale systems to verify incoming payments.
Attempts at Selling Fake e-Kronas
There have been attempts at selling fake e-kronas, a digital complement to cash. The central bank has taken action against fraud linked to the e-rona and warns citizens not to engage with fraudulent advertisements on social media and news sites promoting the “newly launched” e-krona.
Staying Informed and Protected
As financial technology continues to evolve, it is essential for individuals and businesses to stay informed about emerging types of financial fraud in Sweden and take necessary precautions to protect themselves.