Reported by NICLAS ROLANDER, JONAS EKBLOM AND BLOOMBERG

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 of 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.

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. 

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.

To counter the digital crime spree, Swedish authorities have put pressure on banks to tighten security measures and make it harder on tech-savvy criminals, but it’s a delicate balancing act. Going too far could slow down the economy, while doing too little erodes trust and damages legitimate businesses in the process. 

Read full report: https://fortune.com/europe/2024/06/21/why-going-cashless-has-turned-sweden-from-one-of-the-safest-countries-into-a-high-crime-nation/