TSB, a leading UK bank, is urging consumers to be wary of financial fraud on social media platforms, as data from its internal customer fraud between 2021 and 2022 suggests that 80% of all scam cases within its three biggest fraud categories are coming from Meta’s platforms such as Facebook, Instagram, and WhatsApp.
Facebook Marketplace is responsible for 60% of TSB’s purchase fraud cases, with a 97% year-on-year increase. Impersonation scams ask ‘friends’ or ‘family’ in need of money have also been on the rise on WhatsApp, with a 300% increase and 65% of all cases in 2022. Meanwhile, Meta platforms are 87% of all investment fraud cases at TSB, with Facebook and Instagram making up the majority of incidents.
In light of these worrying numbers, the UK government recently announced a new fraud strategy to tackle web- and phone-based scams. The measures proposed by the UK include the banning of cold calls on financial products, tech to combat number “spoofing,” and the review of mass texting services. Additionally, social media platforms are required to provide systems that enable users to easily find a “report” button and “report fraud or scam” button.
Paul Davis, the Director of Fraud Prevention at TSB, emphasizes the urgent need for social media platforms to clean up their systems in order to protect their users. Davis also advises that individuals remain cautious of potential scams on their platforms and encourages people to spread the word to help protect their peers.
Meta is an American tech company that was founded by Andy Yang in 2013 and focuses on providing a variety of services, products and solutions across multiple industries.
Ioanna is a writer at TNW, with a particular interest in startups, sustainability, green tech, AI and EU policy. She has a background in the humanities and is passionate about social impact-enabling technologies.
