Shockingly, more than half of all bank transfer scams reported in 2023 originated from Facebook, Instagram, or WhatsApp—platforms owned by Meta. These platforms have become hotspots for fraud, costing victims millions of pounds each year.
The Payment Systems Regulator (PSR) collected data from 14 of the largest UK banking groups to understand where authorised push payment (APP) fraud starts. The findings highlight an urgent need for tech firms to take responsibility for fraud prevention on their platforms.
How Fraudsters Exploits Social Media
In 2023 alone, Facebook, Instagram, and WhatsApp accounted for:
- 54% of scam cases (119,000 incidents)
- 18% of total financial losses (£63 million)
This equates to £1 in every £5 lost to fraud originating from these platforms.
Facebook emerged as the most common platform for bank transfer scams, purchase scams, romance scams, and advance fee scams. These scams often involve fake goods, fabricated relationships, or bogus promises of prizes and inheritances. On the other hand, Instagram has become a key tool for fraudsters running investment scams.
Other Platforms Are Not Immune
While Meta’s platforms dominate the fraud landscape, others also play a role:
- Snapchat: Linked to 4% of fraud cases
- Twitter/X: Responsible for 3%
- Google: Involved in 2% of cases
These findings align with a Which? survey, which identified Facebook, Google, Instagram, Amazon, and WhatsApp as the brands most commonly linked to bank transfer scams.
Another Costly Threat
The telecoms sector also faces significant abuse by fraudsters. In 2023:
- Fraudulent calls and texts caused 31% of losses despite only 12% of reported cases.
- Emails resulted in a staggering £35 million in losses.
This data reveals that fraud is not limited to social media but spans multiple industries, each requiring urgent fraud prevention measures.
Holding Tech Giants Accountable
The PSR’s Head of Policy, Kate Fitzgerald, emphasised the devastating impact of these scams. “Our report highlights how fraudsters exploit major platforms to deceive victims. Preventing scams before they happen is the best way to protect consumers.”
The PSR aims to publish this fraud data annually to monitor trends and drive change. However, the current pace of action remains slow. A separate PSR study found that victims believe tech companies share responsibility for fraud but fail to deliver adequate support:
- Only 22% of victims were satisfied with the response of tech firms.
- By contrast, 74% were satisfied with how banks handled their cases.
- 41% of victims lost trust in social media platforms, four times higher than the percentage who lost confidence in banks.
New Refund Rules
Since October, banks and payment providers have been legally required to refund APP fraud victims up to £85,000 per claim, except in exceptional circumstances. While this is a step forward, tech giants like Meta and Google are not yet held to the same accountability standards. Consumer advocates, including Which?, successfully campaigned for the Online Safety Act, which aims to reduce online harm, including fraud.
The Act will eventually force tech companies like Meta and Google to meet new codes of practice set by Ofcom or face hefty fines. However, the implementation timeline remains a concern. Fraud-specific protections, such as tackling fraudulent advertising, may not take effect until 2027. Victims cannot afford to wait that long.
A Unified Approach
Rocio Concha, Director of Policy at Which?, called for greater urgency. “Fraud causes misery for victims, and scammers are exploiting social media and telecom platforms to target consumers.”
She stressed the need for online platforms to take more responsibility for removing fraudulent content. She highlighted the potential of the Online Safety Act to drive real change. However, Concha urged regulators to act faster: “The codes of practice must be implemented urgently. Consumers cannot remain vulnerable for years.”
Concha added that tackling fraud requires a united effort: “The fraud minister must publish a meaningful strategy immediately. This strategy must bring together the tech, banking, and telecom sectors to better protect consumers.”
Immediate Action
Fraud awareness is essential to combat this growing problem. While banks are now stepping up with refund schemes, the tech sector must follow suit. Social media giants must invest in robust measures to detect and remove fraudulent content before it traps users.
Consumers, too, must remain vigilant. Fraud prevention starts with understanding the risks and recognising suspicious activity online. By working together—regulators, banks, tech companies, and consumers—we can reduce fraud’s devastating impact. The fight against fraud requires immediate action, not prolonged delays. The time for accountability is now.
