Financial Crime World

Swedish Financial Crimes on the Rise: A Battle Against Card Fraud and Social Engineering Scams

According to the latest data from the Swedish National Council for Crime Prevention, financial crimes, particularly card fraud and social engineering fraud, are on the rise in Sweden (See Figure 10). Here are the key findings:

Growth in Financial Crimes

Fraud has seen the most significant growth in 2023, with:

  • Card fraud increasing by 44%
  • Social engineering crimes increasing by 43%

Figure 10: Rising Trends of Card Fraud and Social Engineering Fraud in Sweden Figure 10: Rising Trends of Card Fraud and Social Engineering Fraud in Sweden

Card Fraud

Despite a steady decline in recent years, card fraud has seen a significant resurgence, particularly in online transactions. Fraudsters have found ways to steal card details without physically having the cards. As a result, many online banks now offer the option to close cards for online purchases, providing customers with an added layer of security.

Social Engineering Fraud

Social engineering fraud, a form of deception used to trick victims into revealing sensitive information, has predominantly targeted the elderly. Criminals often use seemingly legitimate sources, such as telephone calls from banks, to persuade victims into sharing their BankID credentials or other personal details. Text message scams are also becoming increasingly common, with more than half of Sweden’s population having received such messages, and 1% resulting in successful fraud cases.

Combating Fraud

As awareness of these threats grows, Swedish banks and financial organizations are taking action to combat fraud and protect their customers:

  • The Swedish Bankers’ Association launched the Svårlurad initiative, aimed at increasing awareness of social engineering and equipping the public with the tools to protect against fraud.
  • The Association submitted several petitions to the Government, including the introduction of a fraudster register and regulations to counteract spoofing.
  • Nordea introduced savings accounts with delayed withdrawals, allowing customers to more easily halt transactions suspected to be fraudulent.
  • The Government has prioritized the fight against fraud, with Finansinspektionen reviewing measures used by payment service providers to prevent fraud and the Swedish Post and Telecom Authority counteracting spoofing by May 2024.
  • The Government recently convened a meeting with the heads of Sweden’s largest banks, expressing its commitment to increasing cooperation between the industry and law enforcement to safeguard the elderly from financial fraud.

Cash Concerns

Despite a decrease in the number of reported counterfeit banknotes due to the advanced security features of Swedish banknotes, cash remains a significant concern due to its potential involvement in criminal activities. However, the Riksbank, Sweden’s central bank, advocates for the continued acceptance of cash to avoid negatively impacting businesses and consumers.

With a concerted effort from both the public and private sectors, Sweden seeks to maintain the trust of its citizens in the financial system and minimize the impact of financial crimes.

Figure 10: Rising Trends of Card Fraud and Social Engineering Fraud in Sweden

Figure 10: Rising Trends of Card Fraud and Social Engineering Fraud in Sweden

[Note: Statistics for 2023 are preliminary. To download the data from the diagram, click on the arrow next to the diagram. Source: Swedish National Council for Crime Prevention.]