Elven Big Tech firms and social media platforms have joined a UK Online Fraud Charter aimed at addressing the increasing incidence of scams, including fake advertisements and romance fraud.
UK banks have long urged social media companies to take greater responsibility for fraud originating from their platforms. Under the new Charter, companies such as Amazon, eBay, Facebook, Google, Instagram, LinkedIn, Match Group, Microsoft, Snapchat, TikTok, and YouTube have committed to verifying new advertisers and promptly removing any fraudulent content. Additionally, there will be enhanced verification processes for peer-to-peer marketplaces and online dating services.
While this initiative is being hailed as a significant step in the fight against fraud, many in the banking sector remain skeptical. Barclays, for instance, advocates for the government to make scam prevention mandatory, particularly for tech companies, and to hold them financially liable for fraud that starts on their platforms. Data from Barclays indicates that four out of every five scams it encounters originate on tech platforms, including social media, online marketplaces, and dating apps.
Some industry representatives have cautiously welcomed the Charter as a positive development. Paul Davis, director of fraud prevention at TSB, remarked, “We’ve campaigned for years for tech companies to take stronger action against the rampant fraud on social media platforms. Now that we have the Charter, it’s essential for all signatories to align their commitments with meaningful action—implementing the right protections to reduce fraud and take responsibility for protecting millions of consumers on their platforms.”
Liz Ziegler, fraud prevention director at Lloyds Banking Group, emphasized the importance of this action, noting that 80 percent of scams begin online. She expressed hope that tech firms will take swift and serious measures to combat the fraud that affects their users, with the government holding them accountable.