- Bosses of UK banks such as Barclays have warned the Prime Minister that the UK is a “global hotspot for fraud”.
- They said social companies like Facebook should refund victims of fraud if their site was used.
Bosses of Britain’s biggest banks have told the Prime Minister that technology companies like Meta should pay more in the battle to combat the “pandemic” of online fraud that costs consumers £1.2bn a year.
Rishi Sunak has received a letter signed by the chief executives of nine financial institutions, including Barclays, NatWest and Nationwide, warning him that the UK is now a “global hotspot for fraud and scams”.
They accused the government’s new National Fraud Strategy, which was revealed last month, of not being strong enough to fight fraudsters.
Finance chiefs said fraudsters stole £2,300 from British consumers every day last year, and took note of a UK Finance report which concluded £1.2bn was lost to fraud of all kinds in 2022.
Banks also warned they could take more steps to “protect” their customers if the government does not intervene more.
Bosses of Britain’s biggest banks have told the Prime Minister (pictured) that tech companies like Meta should pay more in the battle to combat the “pandemic” of online fraud costing consumers £ 1,200 million a year.
Many frauds begin with contact on social media platforms, such as Facebook, Instagram and WhatsApp, which are under Mark Zuckerberg’s Meta umbrella.
The measures could include slowing payment speeds, which they said was a “useful but forceful instrument” as it would mean consumers and businesses will see completely legal transactions delayed, according to the letter seen by Darling.
The letter, sent on June 6, told Rishi Sunak that online fraud is a “strategic threat” to economic prosperity in the UK and undermines the economy and financial sector.
Many frauds begin with contact on social media platforms, such as Facebook, Instagram and WhatsApp, which are under Mark Zuckerberg’s Meta umbrella.
And banks now want tech companies to be held responsible for stopping them as soon as possible and contributing to refunds owed to fraud victims where the scam used their platform.
They have also called for a public record showing how tech giants fail to prevent these scams.
The banking chief’s letter to Rishi Sunak reveals his frustration that companies like Meta do not take on much of the financial risk from fraud.
Bank TSB wrote to Meta this week demanding they better moderate social media operations. And its chief executive, Robin Bulloch, was among those who signed the letter to the prime minister.
Others who signed the letter include NatWest chief executive Dame Alison Rose, Nationwide chief executive Debbie Crosby, Lloyds Bank Group’s Charlie Nunn, HSBC chief executive Ian Stuart, Barclays chief executive in the UK, Matt Hammerstein, Santander UK CEO Mike Regnier, Handelsbanken CEO MIkael Sorensen and the outgoing CEO. of Starling Bank, Anne Boden.
Rishi Sunak has received a letter signed by the chief executives of nine financial institutions, including Barclays, Natwest and Nationwide, warning him that the UK is now a “global hotspot for fraud and scams”.
The banking chief’s letter to Rishi Sunak reveals his frustration that companies like Meta do not take on much of the financial risk of fraud.
It was also signed by the chairman and chief executive of banking lobby group UK Finance, Bob Wigley and David Postings respectively.
They said most scams targeting Brits start by using a few technology, social media and telecommunications companies.
Banks also complained that the Financial Ombudsman Service places a disproportionate burden on the banking industry and little or no burden on other sectors that contribute to fraud figures.
They urged the prime minister to make voluntary measures mandatory for the telecommunications and technology sectors designed to combat fraud, adding that they should inform consumers about digital security risks.