Financial Giants Urge Social Media Accountability in Fraud Battle
The Rising Tide of Fraud
In recent years, the rise in digital scams has become a global phenomenon, affecting countless individuals and businesses. The UK, in particular, has been a hotspot for such activity, with authorised push payment (APP) fraud becoming alarmingly prevalent. In 2023 alone, APP fraud accounted for 40% of criminal reports, highlighting an urgent need for effective countermeasures.
The Call for Responsibility
Amidst this backdrop, leading fintech companies and banks have voiced their concerns regarding the disproportionate burden they bear in combating online fraud. Noteworthy names such as Revolut and Innovate Finance are at the forefront, urging social media platforms to shoulder more responsibility in addressing this pervasive issue.
Revolut has been especially outspoken, producing multiple reports to underline why platforms like Meta should share liability in fraud cases. Recently, research underscored that over half of global scams in 2024 were traced back to Meta’s platforms.
Collaborative Efforts in the Financial Sector
Echoing these sentiments, Innovate Finance released an anti-fraud strategy report, further advocating for shared responsibility. “This is a threat to consumers and businesses alike,” stated Janine Hirt, CEO of Innovate Finance, during her conversation with UKTN. “A collaborative, targeted approach is pivotal if we are to eradicate fraud in the UK.”
Industry-Wide Support
Support for these initiatives isn’t limited to fintech companies. Established entities like Barclays and digital bank Kroo have also expressed the need for a more balanced distribution of fraud-related liabilities. Kroo emphasized the unsustainability of banks shouldering most costs, dubbing it “disproportionate.”
Similarly, Jenny Hadlow, COO of Checkout.com, stated, “A coordinated effort across every entity within the payment ecosystem is essential to strengthen consumer protection.”
A Muted Yet Crucial Dialogue
While not overtly placing liability on social media or telecom giants, banks like Barclays advocate for a more robust inter-sectoral response. Their stance underscores the necessity of an integrated strategy to combat fraud effectively across various digital platforms.
As the conversation continues, the emphasis remains firmly on fostering cooperative measures, highlighting that an interconnected approach is vital for curbing this digital menace. According to UKTN, it’s pivotal for all sectors involved in the payment ecosystem to unite against fraud.
