Why Going Cashless Has Turned Sweden Into a High-Crime Nation

An anonymous reader quotes a report from Fortune: 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 Linkoping 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. “The fraudsters are so skilled at making things look legitimate,” said Bagley, who was born after BankID was created. “It’s not easy” to identify scams. 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.Using complex webs of fake companies and forging documents to gain access to Sweden’s welfare system, sophisticated fraudsters have made Sweden a “Silicon Valley for criminal entrepreneurship,” said Daniel Larson, a senior economic crime prosecutor. While the shock of armed violence has grabbed public attention — the nation’s gun-homicide rate tripled between 2012 and 2022 — economic crime underlies gang activity and needs to be tackled as aggressively, he added. “That has been a strategic mistake,” Larson said. “This profit-generating crime is what’s fueling organized crime and, in some cases, leads to these conflicts.”

Sweden’s switch to electronic cash started after a surge of armed robberies in the 1990s, and by 2022, only 8% of Swedes said they had used cash for their latest purchase, according to a central bank survey. Along with neighboring Norway, Sweden has Europe’s lowest number of ATMs per capita, according to the IMF. The prevalence of BankID play a role in Sweden’s vulnerability. The system works like an online signature. If used, it’s considered a done deal and the transaction gets executed immediately. It was designed by Sweden’s banks to make electronic payments even quicker and easier than handing over a stack of bills. Since it’s original rollout in 2001, it’s become part of the everyday Swedish life. On average, the service — which requires a six-digit code, a fingerprint or a face scan for authentication — is used more than twice a day by every adult Swede and is involved in everything from filing tax returns to paying for bus tickets.Originally intended as a product by banks for their customers, its use exploded in 2005 after Sweden’s tax agency adopted the technology as an identification for tax returns, giving it the government’s official seal of approval. The launch of BankID on mobile phones in 2010 increased usage even further, along with public perception that associated cash with criminality.The country’s central bank has acknowledged that some of those connotations may have gone too far. “We have to be very clear that there are still honest people using cash,” Riksbank Governor Erik Thedeen told Bloomberg.

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Walmart Announces Electronic Shelf Labels They Can Change Remotely

Walmart “became the latest retailer to announce it’s replacing the price stickers in its aisles with electronic shelf labels,” reports NPR.

“The new labels allow employees to change prices as often as every ten seconds.”

“If it’s hot outside, we can raise the price of water and ice cream. If there’s something that’s close to the expiration date, we can lower the price — that’s the good news,” said Phil Lempert, a grocery industry analyst…

The ability to easily change prices wasn’t mentioned in Walmart’s announcement that 2,300 stores will have the digitized shelf labels by 2026. Daniela Boscan, who participated in Walmart’s pilot of the labels in Texas, said the label’s key benefits are “increased productivity and reduced walking time,” plus quicker restocking of shelves…

As higher wages make labor more expensive, retailers big and small can benefit from the increased productivity that digitized shelf labels enable, said Santiago Gallino, a professor specializing in retail management at the University of Pennsylvania’s Wharton School. “The bottom line, at least when I talk to retailers, is the calculation of the amount of labor that they’re going to save by incorporating this. And in that sense, I don’t think that this is something that only large corporations like Walmart or Target can benefit from,” Gallino said. “I think that smaller chains can also see the potential benefit of it.”

Indeed, Walmart’s announcement calls the tech “a win” for both customers and their workers, arguing that updating prices with a mobile app means “reducing the need to walk around the store to change paper tags by hand and giving us more time to support customers in the store.” Professor Gallino tells NPR he doesn’t think Walmart will suddenly change prices — though he does think Walmart will use it to keep their offline and online prices identical.

The article also points out you can already find electronic shelf labels at other major grocers inlcuding Amazon Fresh stores and Whole Foods — and that digitized shelf labels “are even more common in stores across Europe.”

Another feature of electronic shelf labels is their product descriptions. [Grocery analyst] Lempert notes that barcodes on the new labels can provide useful details other than the price. “They can actually be used where you take your mobile device and you scan it and it can give you more information about the product — whether it’s the sourcing of the product, whether it’s gluten free, whether it’s keto friendly. That’s really the promise of what these shelf tags can do,” Lempert said.

Thanks to long-time Slashdot reader loveandpeace for sharing the article.

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Red Hat’s RHEL-Based In-Vehicle OS Attains Milestone Safety Certification

In 2022, Red Hat announced plans to extend RHEL to the automotive industry through Red Hat In-Vehicle Operating System (providing automakers with an open and functionally-safe platform). And this week Red Hat announced it achieved ISO 26262 ASIL-B certification from exida for the Linux math library (libm.so glibc) — a fundamental component of that Red Hat In-Vehicle Operating System.

From Red Hat’s announcement:
This milestone underscores Red Hat’s pioneering role in obtaining continuous and comprehensive Safety Element out of Context certification for Linux in automotive… This certification demonstrates that the engineering of the math library components individually and as a whole meet or exceed stringent functional safety standards, ensuring substantial reliability and performance for the automotive industry. The certification of the math library is a significant milestone that strengthens the confidence in Linux as a viable platform of choice for safety related automotive applications of the future…

By working with the broader open source community, Red Hat can make use of the rigorous testing and analysis performed by Linux maintainers, collaborating across upstream communities to deliver open standards-based solutions. This approach enhances long-term maintainability and limits vendor lock-in, providing greater transparency and performance. Red Hat In-Vehicle Operating System is poised to offer a safety certified Linux-based operating system capable of concurrently supporting multiple safety and non-safety related applications in a single instance. These applications include advanced driver-assistance systems (ADAS), digital cockpit, infotainment, body control, telematics, artificial intelligence (AI) models and more. Red Hat is also working with key industry leaders to deliver pre-tested, pre-integrated software solutions, accelerating the route to market for SDV concepts.

“Red Hat is fully committed to attaining continuous and comprehensive safety certification of Linux natively for automotive applications,” according to the announcement, “and has the industry’s largest pool of Linux maintainers and contributors committed to this initiative…”

Or, as Network World puts it, “The phrase ‘open source for the open road’ is now being used to describe the inevitable fit between the character of Linux and the need for highly customizable code in all sorts of automotive equipment.”

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