Missed the most basic
Serious security flaws and deliberate price cheating. This is the result when Skrotify reviews Swedish scrap facilities. Our visits reveal how the industry systematically ignores statutory ID checks, which opens the door to money laundering, and deliberately misclassifies materials in order to reduce the price to the customer.
Defeats anti-money laundering
Under Swedish law, companies dealing in scrap must actively work to prevent money laundering and terrorist financing. A central part of this work is maintaining good customer knowledge (KYC), which means knowing who you are doing business with. Even so, a survey carried out by Skrotify shows that the reality at many of the country's scrap facilities is quite different.
Under the guise of regular customers — both as individuals and as representatives of companies — Skrotify's team visited numerous major, established scrap receivers around the country. The results are alarming and point to two main, systematic problems affecting both the seller and society at large.
Problem 1: Ignored ID Checks — An Open Door to Criminal Activity
The most remarkable finding from our visits was the near total absence of identity checks. On the majority of visits, no questions were asked about ID, whether we were selling scrap as individuals or on behalf of a company. Staff made no attempt to verify our identity or ensure we had the right to sell the material from the company we claimed to represent.
This lack of control is not just a careless error -- it's a potential breach of law and a serious security risk. By not ensuring the identity of the seller, these establishments open the door to handling stolen goods and facilitate criminals to launder money through the scrap trade. For serious companies, there is a risk that their material can be sold by unauthorized persons without any control whatsoever.
The law is clear: A scrap dealer has an obligation to understand where the material comes from and who is selling it. When this fundamental principle is ignored, one of the most important protection mechanisms against organized crime falls.
Problem 2: Conscious Misclassification — A scheme to scam you out of money
The other pervasive problem we discovered was a dishonest handling of the material. Our teams arrived with clearly sorted and obviously classified scrap, such as pure copper or specific aluminium. Despite this, in several cases the material was deliberately downgraded to a lower, cheaper category.
A load with an obvious scrap class within CU cable of high copper content was categorised and classed as a scrap class we had never heard of, with a significantly lower price per kilo. When our staff questioned the classification, they were met with sweeping explanations or sheer unwillingness to discuss the matter.
This is not ignorance, but a deliberate scheme to increase one's own profit margin at the seller's expense. For a private individual or small business that does not have full visibility into the current prices and the exact classification requirements, this can mean a loss of hundreds, or even thousands, of kronor per transaction. It's a breach of trust that undermines the credibility of the entire industry.
The exceptions that confirm the rule
In order to give a fair picture, we must point out that during our review we also visited facilities that performed exemplary. Here, they were very clear about the requirements for identification and customer knowledge, asked relevant control questions and were careful in their classification of the material. We even witnessed staff actively stopping sales where it was suspected that everything was not right.
This shows that there are actors who take their responsibilities very seriously. However, the problem for the customer is that it is impossible to know in advance what kind of establishment one is visiting. The widespread occurrence of deficiencies makes any sale a risk taking. The risk of ending up with a rogue operator who deliberately lowers your price or ignores the law is therefore imminent.
We act on our discoveries
The shortcomings we have discovered are so serious that we have chosen to act. The information from our review has been compiled and submitted to the relevant authorities for information and further action. For us, it is not about blackening the activities of others, but about taking responsibility for the future and security of the entire industry. Therefore, we have chosen not to publish the names of the actors included in our review.
Transparency is the way forward
The flaws we have uncovered -- ignored safety checks and deliberate price cheating -- are symptoms of an outdated industry in dire need of modernization and transparency. As a seller, you do not need to be an expert in scrap classes or legislation to feel confident that you are getting paid correctly and that the deal is going correctly.
This is why Skrotify was founded. We have built a digital platform where every step is transparent and traceable. With us, all identification takes place digitally, physically and securely, which guarantees full customer knowledge and traceability in accordance with the law. Our prices are always up to date and clearly specified, and our classification takes place according to strict and transparent processes. In addition, it is important to listen to the customer if they themselves experience a misclassification in order to correct any mistakes - because mistakes can and will be made when the change takes place.
