SWEDEN Increase in Fraud YoY

Limited Growth of CNP, Despite Fierce Attacks

As with the rest of the Nordic region, Sweden suffered some sizable and targeted attacks through 2020, which resulted in incremental uplift in plastic losses. The cashless society mentality has led to strong resilience within the customer base along with controls limiting the widespread use of e-commerce without additional permission from the customers bank. This has led to the fraudsters’ developing a hybrid approach to Nordic scams, which in turn led to a worrying increase for many institutions. Whilst CNP continues to grow, digital adoption in Sweden continues to grow at a faster rate, largely impacted by the continued use in some areas of needing to seek permission from the bank prior to an e-commerce transaction.

This is an incredibly positive story for our partners in region and a testament to the ability of banking entities to grow in profitability and service offerings, by using the strong control frameworks offered to them.

Scams are by far the most prevalent threat now seen in region, either cashed out via e-commerce or direct payment mechanisms. Whilst the controls are increasing fast and customer communication and warning messages become more common, the fraudsters are finding the optimal attack vector faster than the banking entities can adapt to the new threat. There are also many homegrown and untested machine learning approaches used in the region, which is likely to result in additional increases in fraud in the coming years.