Meta, the parent company of prominent social media platforms Facebook, Instagram, and WhatsApp, gets under fire from MPs, consumer groups, and the UK banking industry for failing to prevent a rise in fraudulent activity on its sites.
Projections indicate that UK families may experience losses reaching £250 million ($320 million) in 2023 alone, suggesting that British citizens lose a significant sum of money daily, according to a study conducted by The Guardian.
The research shed light on the individual tales that underlie the frauds that start on Meta's platforms. Investor scam victims, buyers fraud victims, and victims of the WhatsApp "Hi Mum" scam shared their stories.
One Facebook user reported being a victim of investment fraud, losing her life savings, and accruing debts of £70,000. Numerous gullible online buyers, meantime, reported being defrauded of lesser sums while making purchases with shady online shops promoted on Facebook and Instagram.
There has also been a great deal of distress brought on by the WhatsApp "Hi Mum" scam, in which con artists pose as family members to demand money. A 73-year-old victim reportedly felt disgraced and distraught after handing over £2,000 ($2.500) to someone posing as her son.
Damage to UK Families
A well-known UK bank, TSB, reportedly predicted that frauds coming via Meta's platforms might cause up to £250 million ($320 million) in damages for UK families this year. The bank saw considerable increases in fraud that began on Meta-owned websites and applications in 2022, accounting for 80% of the instances they handled. Many victims reported fraud incidents to Meta but received automated answers or no reaction.
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The online safety legislation, presently debated in parliament, intends to have social media and IT companies delete bogus adverts. New anti-fraud measures include encouraging IT businesses to simplify scam reporting and enabling banks to defer questionable payments. There are no provisions, meanwhile, for IT companies to reimburse clients for losses brought by such frauds.
The CEO of TSB, Robin Bulloch, voiced grave worry about the high fraud rates on Meta's platforms and advocated for better security. He stressed that owing to inadequate protection on Meta platforms, TSB, the only bank with a fraud refund guarantee, saw daily losses that may drastically alter the lives of UK families.
Taking Steps to Address Scams
TSB, Barclays, Nationwide, and Starling Bank are some financial institutions urging Meta, a corporation with a market valuation of $700 billion, to contribute financially to offset these expenses as banks face a significant refund bill.
Meta's revenue comes from advertising, with Facebook's UK operations predicting a 37% rise in gross revenues from advertisers to £3.3 billion ($4.2 billion) in 2022.
TSB fraud specialists have recommended customers make direct contact with the parties involved before sending money and warned them to be wary of random communications posing as messages from friends or relatives. In addition, TSB advised inexperienced investors to stay with well-known investing platforms and steer clear of the "get rich quick" scams common on social media, according to Sky News.
Meta has joined Stop Frauds UK to help victims and stop fraud at their source. In conjunction with WhatsApp, the Friends Against Scams campaign of the National Trading Standards, and assistance from Citizens Advice, the firm recently launched the "Stop. Think. Call." initiative, per Metro.
Moreover, the tech company owned by Mark Zuckerberg also now requires UK financial services ads to get approval from the Financial Conduct Authority.
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