“The system seems to have failed to check whether the loan applicant and the account holder were the same person. This is unfortunate, and perhaps the bank should overhaul its procedures so this sort of thing doesn’t happen again,” said public prosecutor Joachim Gyllenkreutz in a comment to the newspaper.
The youths are reported to have applied for the loans at Citibank, given the personal details of acquaintances and asked for the money to be deposited in their own accounts.
According to the prosecutor, the swindle was discovered when one of the ‘borrowers’ received a letter from the bank about a loan he hadn’t requested. Citibank however claimed that the fraud was detected by their own security system.
It is still not clear how much money was involved. The young men are suspected of serious fraud as they had applied for a further 20 or so loans totalling several million kronor which the bank did not approve.