New UK Government Should Require Big Tech to Fund Scam Prevention Efforts
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New UK Government Should Require Big Tech to Fund Scam Prevention Efforts

The next UK government should introduce a bill that requires technology, social media, and telecom firms to contribute £40 million annually to combat fraud and scams, as advocated by UK Finance.

Authorised Push Payment (APP) fraud has dramatically increased in recent years, resulting in UK losses exceeding $500 million last year. To address this issue, regulators are implementing new rules for the banking sector. Starting in October, most victims of APP fraud will see their losses reimbursed.

UK banks have been urging major tech companies, social media platforms, and telecom providers to take greater responsibility for the fraudulent activities originating from their platforms. Reports indicate that 76% of APP fraud occurs online, while an additional 16% is linked to the telecom sector.

Last year, 11 tech and social media companies committed to a UK Online Fraud Charter aimed at countering the surge in scams, including those from fake adverts and romance fraud. Now, UK Finance is advocating for a stronger governmental stance based on this voluntary charter.

To enhance resources for tackling fraud and economic crime, UK Finance suggests including online platforms, internet service providers, and telecom companies under the Economic Crime Levy framework. This could generate over £40 million annually, which can be used to improve technology, hire specialized officers, and incentivize measures to reduce fraud.

Additionally, in its financial services manifesto ahead of the general election, UK Finance calls for a net zero roadmap, the promotion of the National Payments Vision, support for open banking, and the issuance of a digital gilt backed by HM Treasury to stimulate the development of securities tokenization.

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