Pressure on social media platforms to share the responsibility of tackling fraud is rising as banks and payment firms call for a joint effort.
Amid public demands from the likes of Revolut and Innovate Finance for social media to take greater responsibility in supporting fraud victims, a handful of firms have told UKTN they support these calls.
Scams, in particular authorised push payment (APP) fraud, have become one of the most common crimes in the UK, representing 40% of criminal reports in 2023.
So far, much of the onus of supporting fraud victims and preventing future scams has fallen on payment providers, however, calls from the sector have been growing for a more even split with social media, where the vast majority of scams originate.
Revolut, the UK’s largest digital bank, has been the most vocal, publishing multiple reports outlining why Meta in particular should share liability for fraud reimbursement.
Research published by Revolut found that Meta platforms were the source of more than half of scams globally in 2024.
This was later echoed by Innovate Finance, the British fintech trade body, that called for social media fraud liability as part of its anti-fraud strategy report, released earlier this week.
“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.
Speaking to UKTN, digital bank Kroo confirmed its support for the measure.
“We agree that payments firms and socials media companies should share liability for fraud victim reimbursement,” a spokesperson said.
“Fraud and fincrime rates are skyrocketing across the industry, with UK Finance (2022) reporting that 75% of online fraud begins on social media.”
Kroo said banks bearing the bulk of the cost of fraud is “disproportionate and unsustainable”.
Jenny Hadlow, COO of Checkout.com told UKTN that addressing fraud and scams “requires a coordinated effort from every business and sector that touches the payment ecosystem”.
“We welcome efforts that strengthen consumer protection and ensure all relevant parties take responsibility for ensuring safety and maintaining trust.”
Demands for greater equity in tackling fraud were not limited to fintechs either, with Barclays telling UKTN that cross-sector efforts would be required between the social media and telecommunications sectors and financial services.
Though the bank did not directly call for fraud reimbursement liability to be placed on these sectors, it advocated for a more effective shared response to fraud.
Read more: ‘Their silence says it all’: Revolut demands Meta fraud liability
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