UK banks warn of “huge fraud spikes” on social media and messaging apps
UK banks say there have been “huge fraud spikes” across social media and dating apps as scammers adopt more sophisticated techniques to target victims.
Barclays, TSB, Lloyds and NatWest have all revealed a startling rise in online scams and believe online platform owners need to do more to prevent them.
Meta’s platforms are currently a haven for fraudsters, but the tech giant says it is an “industry-wide issue”.
Fraudsters are regularly using Facebook, Instagram and WhatsApp among other platforms to publish fake listings and profiles and undertake impersonation, investment and purchase fraud.
Offline scams were once the most prevalent, but Barclays says three-quarters of scams now take place across social, marketplace, and dating apps.
Lloyds believes the scale of scams means it will soon be an “epidemic”.
TSB says it had to issue more than 2,600 refunds linked to these cases in 2022.
Six in ten of these occurred when a scammer sold an item without the intention of sending the product to a buyer.
The bank’s director called for an urgent clean-up by social media companies to clamp down on spiralling fraud.
TSB’s robust action helped 56% of all fraud victims in the UK recover their money.
But with scams evolving in tandem with cutting-edge technology and methods, Which? urged the government to act.
The new Online Safety Bill should help but it has yet to be officially signed off in parliament.
Which? Director Rocio Concha, concluded: “The government must take a vital step in the fight against fraud by ensuring the bill includes the strongest possible protections for consumers and is passed into law without further delays.”