UK Launches A New Online Fraud Charter To Address Increasing Scams From Fake Adverts
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Elven Big Tech firms are working with social media platforms to sign up for a UK Online Fraud Charter. They will work together to address the increase in scams from fake adverts and fraud related to romance activities.
UK banks are currently championing firms operating in the social media industry to pay more attention to fraudulent activities from their platforms. This issue will likely tame the increase in fraud spread through social media.
UK Launches a New Online Fraud Charter
This new Charter revolves around companies such as Amazon, Microsoft, LinkedIn, eBay, Google, Facebook and Instagram, Match Group, YouTube, TikTok, and Snapchat.
The companies have also pledged to verify new advertisers’ identities and promptly remove fraudulent content.
These companies will also post a significant verification level on peer-to-peer marketplaces and those relying on online dating services.
Regulators believe the initiative will be a major breakthrough in mitigating fraudulent activities. Most people in the banking industry have also remained unimpressed by these changes.
Barclays believes that the government will make the prevention of scams mandatory, particularly for tech companies. These companies need to take liability for fraudulent activities stemming from their platforms.
The financial giant also revealed data saying that four out of every five scams encountered come from tech platforms such as social media, dating platforms, and online marketplaces. This initiative is already being hailed as a step in the right direction.
Preventing Fraudulent Activities
The director of fraud prevention at TSB, Paul Davis, commented on the development, saying the regulator worked for years with tech companies to prevent fraudulent activities now popular across social media platforms.
“Now we have the Charter, it’s down to all signatories to match their commitment with meaningful concerted action – putting the right protections in place to reduce fraud and take responsibility to protect millions of consumers on their platforms,” Davis opined.
The fraud prevention director at Lloyds Banking Group commented on this development, saying the action was important because 80% of scam activities start online. As such, the regulatory body would work with tech companies to see that they move with much effort and address the fraud that users often fall victim to. Moreover, governments will also work with these users to ensure they are held to account for enabling fraud.
