UK banks are calling on Big Tech and telecommunications companies to take responsibility for their role in the increase of online fraud and to voluntarily reimburse victims. This appeal is in line with the ‘polluter pays’ principle, which holds that those who generate pollution should bear the costs associated with preventing and mitigating its effects. Institutions such as TSB, Barclays, Santander, and Lloyds specifically called out platforms like Facebook, Instagram, and Google, along with telecom companies, for not contributing to the losses incurred by fraud victims.
In 2020 and 2021, £462 million was returned to victims of financial crime, highlighting the significant issue at hand. Barclays has reported that over 75% of scams occur on social media, auction websites, or dating apps, emphasizing that accountability should extend beyond banks alone.
In an opinion piece for The Telegraph, Barclays’ head of economic crime, Sian McIntyre, proposed the creation of a cross-sector fund supported by the polluter pays principle, urging those companies that allow scams on their platforms to contribute financially. TSB’s director of fraud, Paul Davis, echoed this sentiment, asserting that compensation from technology firms is “long overdue” and that fraud cannot be solely addressed by banks.
Additionally, Liz Ziegler, financial crime director at Lloyds, suggested that tech companies should actively engage with the broader industry and government to determine their obligations regarding reimbursement. Chris Ainsley, head of fraud risk management at Santander, acknowledged the challenges in getting all stakeholders to collaborate on sharing scam data and developing a reimbursement framework but stressed that progress in the fight against fraud depends on such cooperation.