Originally published on Bloomberg.com on June 21, 2024 as “How the Dash to Ditch Paper Money Created a Playground for Criminals”

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.

Ellen Bagley was delighted when she made her first sale on a popular second-hand clothing app, but just a few minutes later, the thrill turned to shock as the 20-year-old from Linköping in Sweden discovered she’d been robbed.

Everything seemed normal when Bagley received a direct message on the platform, which asked her to verify personal details to complete the deal. She clicked the link, which fired up BankID — the ubiquitous digital authorization system used by nearly all Swedish adults.

After receiving a couple error messages, she started thinking something was wrong, but it was already too late. Over 10,000 Swedish kronor ($1,000) had been siphoned from her account and the thieves disappeared into the digital shadows.

“The fraudsters are so skilled at making things look legitimate,” said Bagley, who was born after BankID was created. “It’s not easy” to identify scams.

Although financial crime has garnered fewer headlines than a surge in gang-related gun violence, it’s become a growing risk for the country. Beyond its borders, Sweden is an important test case on fighting cashless crime because it’s gone further on ditching paper money than almost any other country in Europe.

Read the rest of the article here.

Reported with Niclas Rolander. Photo By: Kaboompics.com.