Bankruptcies are on the rise. In October, bankruptcies increased by 12 percent compared to the same period last year, according to statistics from business and credit information company UC.

In information and communication, bankruptcies have increased the most, 110 percent during the month of October compared to the same period last year. The construction industry also remains tough, with a 19 percent increase in the number of bankruptcies in October.

A large increase in suspected fraud could be one explanation, according to UC, as the industries traditionally subject to fraud are those now being hit hard by bankruptcies.

”"Construction, civil engineering, employment services, transport and restaurants are industries where criminal networks have traditionally operated and over 50 percent of bankruptcies may be linked to fraud. In 2023, we may see a decrease as it is more difficult to obtain corporate credit due to the economic situation. But the risk going forward is that criminal networks will expand to other criminal methods to obtain money," says Gabriella Göransson, CEO of UC.

However, bankruptcies in trade decreased slightly, down 4 percent during October compared to last October.

Source: TT-DI.SE