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TSB calls on Meta to do more to prevent spiralling levels of fraud

TSB calls on Meta to do more to prevent spiralling levels of fraud

TSB chief executive Robin Mulloch has writtten to Meta demanding that the social media firm does more to protect consumers from fraud originating on its platforms.

TSB tells Meta that scams originating from its platforms account for 80% of the fraud it refunds within its three biggest fraud categories - purchase, investment and impersonation.

Projections from industry data and current fraud levels show that without the tech interventions required to protect consumers from fraud, scams originating on Meta platforms could account for up to £250m of push payment losses to UK households in 2023.

In addition, TSB estimates that over 70,0003 purchase fraud cases - almost 200 a day - took place on Facebook Marketplace in 2022.

TSB says Meta should introduce a secure payment mechanism to stop spiralling levels of fraud on Facebook Marketplace. At present, Marketplace transactions do not go through a recognised payments system and payments can take place directly from a victim to a fraudster, with the bank carrying the can for failed delivery.

Bulloch has also called on Meta to stop unregulated firms using Facebook and Instagram to advertise investments and financial products, and to block obviously fraudulent adverts and social media posts such as those using terms like ‘cash flip’ or ‘crypto offer’. In addition, TSB believes that WhastApp users should be alerted when they’re contacted from new numbers and warned to check that the numbers are genuine.

Paul Davis, director of fraud prevention, TSB, says: “Meta needs to face up to its responsibility: it has a duty of care to the millions of customers who use its platforms, which is all the more important when we see innocent people lose life-changing sums every day.”

Comments: (3)

A Finextra member
A Finextra member 14 June, 2023, 10:56Be the first to give this comment the thumbs up 0 likes

If the transaction happens entirely within Facebook/META then facebook/META are responsible for the brokerage of that transaction - this should not be a matter to be pursued by a letter - it should be resolved via an act of government.  Maybe Ed Davey can call his old mate Nick Clegg  whilst getting Nicks employer on the hook for these transactions.... I am sure Facebook is profiting from every one of these frauduent transactions.... sounds like they are similar to a  Money Service Business to me! An unregulated one! 

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 15 June, 2023, 11:14Be the first to give this comment the thumbs up 0 likes

Not sure why regulators are not writing to Meta!

A Finextra member
A Finextra member 15 June, 2023, 11:16Be the first to give this comment the thumbs up 0 likes

Agree - they are beyond the law - operating as if they were cross border whilst being very onshore.   

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