Bank bosses call on the firms behind social media sites including Facebook, WhatsApp and Instagram to help compensate victims of scams
- Barclays backs the Money Mail ‘Stop the Social Media Scammers’ campaign
Tech companies behind Facebook, WhatsApp and Instagram should help compensate victims of scams, say bank bosses.
Fraudsters are driving an online crimewave with one Briton falling victim to a shopping scam every seven minutes.
Now Barclays is backing the Money Mail ‘Stop the Social Media Scammers’ campaign.
It is calling for a tough new regime that would include forcing tech giants to pay towards the cost of reimbursing victims.
Barclays said that 88 per cent of shopping scams, which cause victims to lose £1,000 on average, start on social media platforms.
Tech companies behind Facebook, WhatsApp and Instagram should help compensate victims of scams, say bank bosses
Now Barclays is backing the Money Mail ‘Stop the Social Media Scammers’ campaign
The bank says there should be a victim reimbursement fund to be financed by all firms whose systems and platforms are used to perpetrate scams, including tech companies and banks.
It is also called for the creation of a cross-Government group within the Home Office to deal with the issue in order to coordinate regulators, policy makers, industry groups, and companies across different sectors.
Barclays said the prevention of scams should also be made mandatory, particularly for tech companies, in a shift from current voluntary measures.
The government is under pressure to make the tech giants to publish their scams data to inform consumers of the risks involved in using their platforms.
READ MORE: Instagram is ignoring calls to shut down dangerous profiles run by scammers and has failed to prevent ‘blatant criminal activity’, fraud bosses at TSB say
Matt Hammerstein, chief executive officer of Barclays UK, said: ‘With so much of everyone’s lives now being online, from staying connected with friends and family, to shopping, it’s important that people feel safe on the platforms they use.
‘Our data shows that tech platforms, particularly social media, are now the source of almost all scams.
‘However, there is no current legislative or regulatory framework obliging the tech sector to support the prevention of these crimes, as there rightly is for banks.
‘We can only drive back this epidemic, and protect UK competitiveness, by stopping scams at their source, preventing the flow of funds to organised crime.’
The Money Mail campaign is calling for fines to be imposed on social media platforms if they fail to clear out the fraudsters.
The government is under pressure to make the tech giants to publish their scams data to inform consumers of the risks involved in using their platforms
It argues there should be tougher identity verification measures to stop criminals setting up bogus social media accounts.
While it is calling for sales sites such as Facebook Marketplace to offer users secure payment systems to buy and sell.
Meta said: ‘We don’t want anyone to fall victim to these criminals, which is why we have systems to block scams and financial services advertisers now have to be FCA authorised.
‘Scammers are using increasingly sophisticated methods to defraud people, which is why we run campaigns on how to spot fraud. Our work is never done and we encourage anyone who spots a scam to report it in a few simple clicks.’
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