The Swedish Financial Supervisory Authority has issued a consumer warning about fraudsters re-contacting people who have already lost money to scams, posing as firms that can help recover the funds. The authority reported an increase in calls about this pattern during the first quarter of 2025 and also highlighted a parallel trend of loan offers that require fees to be paid upfront but result in no loan being paid out. The so-called “recovery firm” scheme involves demanding a transfer from the victim to supposedly unlock access to the victim’s lost funds, leading to further losses. The authority also noted it recently warned about four fake companies linked to upfront-fee loan fraud. Police reports of investment fraud fell by 17% in 2024 compared with 2023 and continued to edge down in January and February 2025, but the authority stressed that under-reporting remains substantial and encouraged victims to report incidents to the police. It also emphasised the role of public tips in helping it identify actors to warn about through its warning list, which is intended as a tool for banks and other financial firms as well as consumers, alongside checks of IOSCO’s I-SCAN warning database and the authority’s register of authorised firms.
Finansinspektionen 2025-04-25
Swedish Financial Supervisory Authority warns of ‘recovery firm’ scams and upfront-fee loan fraud as victim contacts rise
The Swedish Financial Supervisory Authority issued a consumer warning about fraudsters posing as recovery firms to exploit scam victims, noting an increase in such cases in early 2025. It also highlighted a trend of fraudulent loan offers requiring upfront fees without delivering loans. Despite a 17% drop in reported investment fraud cases in 2024, the authority emphasized the issue of under-reporting and encouraged victims to report incidents.