Innovate Finance, the industry body for British fintechs, has called for an anti-fraud strategy that would force social media and telco firms to share liability with payment providers in reimbursing fraud, echoing calls from the sector.
The group said social media platforms like Facebook as well as calls and texts managed by telco groups should share the financial burden of reimbursing victims because the majority of fraud originates from these platforms.
Consumer protection rules came into force last October requiring payment providers to reimburse scam victims up to £85,000. The policy has been criticised by the financial sector, with Revolut in particular championing the cause for social media companies to share the burden.
The UK’s largest fintech has released multiple reports containing damning figures for Meta, the platforms of which were the original source for 58% of all UK fraud in 2024.
Innovate Finance has joined Revolut in calling for shared liability with the release of A Technology Strategy to Smash Fraud, a new report outlining its recommendations to tackle one of the most pervasive crimes in Britain – representing 40% of reported crimes in 2023.
“Given the scale of the threat posed to consumers and businesses alike, we urgently need a more collaborative, targeted, and effective strategy that aspires to smash fraud in the UK,” said Janine Hirt, CEO of Innovate Finance.
“By acting now, the UK Government can lead the way in tackling fraud, protecting consumers and reinforcing its position as a global leader in secure and innovative finance.”
The report also called for the establishment of a National Anti-Fraud Centre that would promote data sharing across regulators, law enforcement, finance and social media.
This has been supported by Labour MP Luke Charters, who sits on the Public Accounts Committee (PAC).
“The pain and distress caused by fraud are immeasurable, and it cannot continue. Effectively countering this threat requires a coordinated, cross-sector response, leveraging expertise from financial institutions, regulatory bodies, law enforcement, and policymakers alike,” Charters said.
“By uniting insights, intelligence, and expertise from across industries, this centre could serve as a formidable force against fraudsters, enabling real-time threat detection and disruption.”
The group argued that as well as preventing millions of lost pounds in fraud, building a world-class anti-fraud industry could itself net significant returns. The body projects anti-fraud as a sector to be worth $246.16bn by 2032.
Read more: Metro Bank partners with AI startup to tackle fraud
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