Coronavirus uncertainty creates fertile ground for fraudsters

Uncertainty and financial losses make private investors vulnerable to fraudsters offering quick fixes and lucrative investment deals.

Uncertainty and huge stockmarket losses make private investors more vulnerable to fraudsters offering quick fixes and lucrative investment opportunities, says Global Head of Fraud Management at Danske Bank, Ketil Clorius: 

”We have seen a sharp rise since January this year, and there is no doubt that the increase is fuelled by corona-related uncertainty as many private investors have lost money on falling share prices and as they spend more time online at home where they can be targeted by fraudsters”. 

More fraud
Online fraud where private investors are lured by false promises of quick and easy gains on stocks, bonds or crypto currencies is nothing new but current uncertainties and the general state of emergency create golden opportunities for fraudsters. 

”It is a general, growing problem and a constant race with criminals trying to get ahead. And in a situation like today where there is a great deal of uncertainty and many have lost a lot of money, people are generally more vulnerable to fraud and exploitation”, says Ketil Clorius. 

Middle-aged men most exposed
For bank customers exposed to fraud, losses vary from 5,000 DKK up to 500,000 DKK. Often a bond of trust between victim and an online fraud-site is built for fraudsters to gradually extract more and more money from the victim. Middle-aged men are particularly vulnerable to this kind of fraud. 

It is a general, growing problem and a constant race with criminals trying to get ahead. And in a situation like today where there is a great deal of uncertainty and many have lost a lot of money, people are generally more vulnerable to fraud and exploitation

Ketil Clorius

Head of Fraud Management, Danske Bank



”Victims of this kind of crime are very often men aged 50 or more. They often have a bit of savings and they might have done a bit of investing already and might feel confident to try again”, says Ketil Clorius. 

Most transactions stopped 
The majority of transactions from bank customers to fraudsters are caught by the bank’s safety nets but not all of them, says Ketil Clorius.  

”From time to time, some transactions do manage to get through our control systems in which case we done everything we can to help customers get their money back before it is too late and the money is irretriavable", says Ketil Clorius. 


'Keep it safe'

In Danske Bank we have created the site 'Keep it safe' to help customers protect themselves.