Charles McManus, CEO of ClearBank, urges Meta to take action against online fraud by addressing fake accounts.
- Online payment fraud continues to grow, with Meta platforms accounting for a significant portion of such cases.
- Pressure mounts on social media companies, as financial institutions have already invested heavily in fraud prevention.
- Revolut criticises Meta’s existing measures as insufficient, advocating for the company to bear more responsibility.
- The rising costs of fraud highlight the need for effective solutions from both social media companies and banks.
Charles McManus, the CEO of ClearBank, has made a public appeal for social media giant Meta to take more decisive action in combating online fraud. He emphasised the importance of removing fake accounts, which are often linked to fraudulent activities on platforms like Facebook and Instagram. McManus asserts that ‘everyone in the fraud chain has a role to play.’ This call comes amidst a backdrop where banks have already invested over £30 billion in fraud prevention measures.
Statistics reveal that around 78% of push payment fraud originates online, with Meta platforms playing a major role in these incidents. In stark contrast, other platforms account for just 0.05% of such frauds. The disparity highlights the potential for improvement by Meta in fraud reduction. The government, recognising this issue, is applying pressure on social media firms to meet their responsibilities in preventing online scams.
Further criticism from Revolut, another significant player in the fintech sector, has been aimed at Meta. Revolut describes Meta’s recent efforts as mere ‘baby steps’ and argues that the burden of reimbursing fraud victims falls unjustly on financial institutions. There is a growing call for Meta to not only stop fraudulent activities but also to share the financial responsibilities involved.
McManus suggests that Meta has both the resources and technological capability to lead the charge in cleaning up their networks from duplicate and fake accounts. The presence of such accounts facilitates fraudulent activities, according to McManus. He indicates that Meta has begun to acknowledge these concerns and is starting to take action, though he stresses the need for more substantial efforts.
The cost of fraud in the United Kingdom has seen a dramatic increase, with figures from BDO showing it more than doubled to £2.3 billion in 2023. This surge underscores the urgency for both banks and social media platforms like Meta to implement robust anti-fraud measures.
Decisive action from Meta is essential in the fight against the growing issue of online fraud, as urged by financial leaders.
