DENMARK Decrease in Fraud YoY
Digital Adoption and ‘Cashless’ Mentality Force Fraud Elsewhere
It is widely known that the Nordic region is primarily ‘cashless’ but Denmark enjoys the true differentiation of being ‘Digital First’ — even before the pandemic, Denmark had the highest reported mobile banking penetration rates in the world. This is the very channel that clients were forced to in many other European states during the pandemic, but without the pre-existing framework, experience and controls required to protect it. Put simply, this meant that the pandemic made Denmark an even more hostile environment for the fraudsters, a story that plays out beautifully in the data. This is testament to the continued success of all FICO partners in region, who continue to ensure that they are not complacent in increasing the ferocity of their fraud prevention frameworks.
Despite this significant success in plastics fraud, the story is not all positive in Denmark. As with all hostile plastic markets, the fraudsters have been actively driving their migration into direct payment frauds and ‘scams’, which are the number one threat in Europe with first-party and money mule threats not far behind. Many partners have now achieved ‘enterprise’ fraud management and are taking advantage of the consortium-based payments and scams analytics, leaving little room for the fraudsters to hide. However, the adoption of this standard practice is still slow and sometimes varied. Risks are still taken with unproven and siloed processes and partners, which ultimately leaves a handful of entities exposed. It is this exposure which is actively targeted and abused by the criminals.