As fraud spreads on big tech platforms and is a big problem for banks, the two sides complaining about having to pay victims compensation actually share the same responsibility.
Meta recently launched a fraud data sharing partnership designed to communicate data from banks over fraudsters’ actions to help tackle scams on the platform.
The move followed successful pilots involving NatWest and Metro Bank which identified bank accounts linked to malicious websites appearing on Meta’s platforms.
However, UK banks are disgruntled at having to shoulder full responsibility to compensate victims of fraud up to £85,000. A lot of victims engage with scams on online platforms first before the irreversible action of money leaving their bank account.
Challenger bank Revolut said the data-sharing plan fell “woefully short” of a solution to address the devastating scams.
Despite the proposed mandate, neither side has a duty to reimburse victims in a common scenario like fraud. Meta is also seeking a partnership with banks that will benefit them with unlimited intelligence on scams, rather than having to invest in the monitoring tools to protect their users.
