Sweden has led the way in Europe in going cashless, but fast and easy digital commerce have left consumers and the state vulnerable to fraud.

Online fraud and digital crime in Sweden have surged, with criminals taking 1.2 billion kronor in 2023 through scams like the one Bagley fell for, doubling from 2021. Law-enforcement agencies estimate that the size of Sweden’s criminal economy could amount to as high as 2.5% of the country’s gross domestic product.

While the shock of armed violence has grabbed public attention — the nation’s gun-homicide rate tripled between 2012 and 2022 — economic crime underlies gang activity and needs to be tackled as aggressively, he added.

“That has been a strategic mistake,” Larson said. “This profit-generating crime is what’s fueling organized crime and, in some cases, leads to these conflicts.”

The prevalence of BankID play a role in Sweden’s vulnerability. The system works like an online signature. If used, it’s considered a done deal and the transaction gets executed immediately. It was designed by Sweden’s banks to make electronic payments even quicker and easier than handing over a stack of bills. https://www.bloomberg.com/news/articles/2024-06-21/sweden-led-europe-s-move-to-cashless-economy-now-it-faces-soaring-fraud