Financial Crime World

Sweden’s Surge in Financial Fraud: Card Fraud and Social Engineering on the Rise

Stockholm - Sweden’s payment system is facing a growing threat as financial fraud cases increase at an alarming rate, according to the Swedish National Council for Crime Prevention. In 2023, fraud was the most rising crime category, with card fraud and social engineering fraud being the primary concerns.

A Concerning Trend of Rising Card Fraud and Social Engineering Fraud

Figure 10:

  • Card fraud cases jumped by 44% in 2023 compared to the previous year.
  • Card fraud had been on a downward trend but is now once again on the rise.

Elderly Victims Targeted by Social Engineering Fraud

Social engineering fraud, often carried out through phone or text scams, is a serious concern, particularly for older individuals. Fraudsters manipulate victims into providing sensitive information or signing documents by posing as representatives from banks.

  • Scam text messages reportedly affect over half of the population.
  • Approximately 1% of these scams result in completed frauds.

Swedish Banks and the Government’s Response to Social Engineering Fraud

Swedish banks and the Swedish Bankers’ Association are taking steps against social engineering fraud through initiatives like Svårlurad. This initiative aims to raise awareness and offers training on how to protect against scams.

  • Petition from the Swedish Bankers’ Association for a fraudster register and rules to prevent spoofing.
  • Nordea offers savings accounts with delayed withdrawals to make it easier for customers to halt suspicious transactions.

Card Fraud Targeting Online Transactions

The surge in online shopping during the pandemic made online card fraud a significant concern, even with strong customer authentication for card payments.

  • Online card fraud cases increased by 44% in 2022 and 2023.
  • Criminals can carry out transactions online in countries without robust authentication methods.

Decreasing Number of Counterfeit Banknotes with the Decline of Cash Use

Although Swedish banknotes feature advanced security features, the diminishing knowledge about genuine banknotes raises concerns as fewer people rely on cash.

  • Stores and companies are encouraged to continue accepting cash.
  • Implementing amount limits could curb cash-related criminal activities.

[Source: Swedish National Council for Crime Prevention, Swedish Police, Swedish Bankers’ Association]