DurangoAvatarIf the US Follows the Post EMV Fraud Path of Sweden

Global Leader in Cashless Transactions Shows Fraud Detection Work

If the United States were to follow the post EMV fraud path of Sweden then in 2022, the US will have fraud totaling $10.76 Billion, most of the increase comes in the form of Card-Not-Present fraud.

Like the Netherlands, Sweden is known to have some of the lowest fraud rates in Europe.  However, unlike the Netherlands, Sweden has a higher percentage of credit card transactions, with MasterCard and Visa leading the pack.  In fact, Sweden has recently been touted as the most cashless country on the planet, with less than 2% of transactions involving cash.  Busses haven’t accepted cash payments for years and churches accept credit cards for tithing. It was considered a risky proposition, even in this innovative nation with widespread equality and technology adoption, to promote the use of mobile card readers by Street vendors (sometimes homeless) to accept payments for purchases of low cost items like Magazines and Newspapers. But it turned into a boon for a segment thirsty for revenue in a society that carried cards not cash. Despite the dispersed and ubiquitous acceptance of electronic payments, Sweden has low fraud rates that rival the Netherlands, and only 60% of of the fraud that its neighbor Norway reports.

A notable differentiation in the Swedish market is the emphasis on customer experience and safety.  Much of the conversations around credit card fraud revolve around the tension between customer experience and stopping tricksters in their tracks.  Sweden appears to be tackling this conflict head on.