Sweden’s Public Employment Service is monitoring citizens’ online activity to prevent welfare fraud.
Around 4,000 people have been flagged for logging in from outside Sweden. The agency uses IP addresses, which can show the device’s physical location.
Swedish law requires unemployment recipients to live in the country and actively seek work from within. People must report holidays or apply for permits if travelling abroad for job hunting.
Recipients usually confirm their job applications through the agency’s portal and speak with advisers supporting their work search.
Andreas Malmgren, operations controller at the agency, said this approach helps “counteract the risk of incorrect payments.” He added flagged individuals are abroad despite needing to participate in employment programmes.
Starting this autumn, the agency will contact the 4,000 people to explain their absences before benefits are withdrawn or repayment demanded. Compensation could reach nearly €2,500 per month before taxes.
Sweden’s system follows a controversial Dutch programme that tracked benefits recipients abroad. Dutch authorities scrapped it after lawyers warned it breached privacy rules.
The Dutch scheme ran nine months, flagged 3,600 cases, and adjusted 460 payments, though no one lost money solely due to algorithms. The Data Protection Authority called it “worrying” and demanded an investigation.
In contrast, Swedish authorities say IP tracking is legal and necessary to fulfil their mission. No privacy concerns have been raised locally.
Recipients who are abroad without permission may lose benefits, while others risk repayment if the agency determines they did not meet requirements. The autumn contact period will give citizens a chance to respond.
Sweden’s move highlights growing tensions between digital monitoring and personal privacy in European welfare systems.
