03 December 2024
Tietoevry Banking, a leading provider of software solutions to Nordic banks and card issuers, reports a dramatic increase in fraud attempts linked to fake online stores during this year’s Black Week. Transactions worth SEK 75 million were blocked in Sweden and Norway during Black Week, marking an 11% increase compared to 2023. Over the course of November, the number of detected cases rose by 38% compared to the previous year, with a total of over SEK 220 million in fraud prevented during the month.
"Fraud attempts involving fake online stores spike significantly during high-traffic shopping periods, creating an ideal environment for criminals to exploit bargain-seeking consumers. This year’s Black Week set a grim record, with the highest number of detected and blocked fraud cases ever, showing an increase of approximately 300% compared to an average week in October," explains André Moen Eide, Head of the Financial Crime Prevention Defence Centre at Tietoevry Banking.
So far in 2024, Tietoevry Banking has prevented fraud amounting to over SEK 4 billion, with a significant share related to fake online stores.
Fake online stores are becoming increasingly sophisticated, with fraudsters using AI to create convincing images and texts. Many claim to sell branded clothing and shoes at significant discounts but deliver cheap imitations—or nothing at all. Through targeted ads on social media, scammers trick consumers into providing payment details or making purchases that are never fulfilled.
"Thanks to AI technology and our dedicated teams working around the clock in close collaboration with our customers, we are able to stop nearly 90% of fraud attempts. However, many still fall victim, which highlights the importance of raising awareness about the issue of fake online stores"
- André Moen Eide