Barclays executives are urging tech companies to take accountability in reimbursing victims of social media purchase scams, which have shown a significant increase, according to the bank’s data. These scams now constitute two-thirds of reported fraudulent activities, with victims losing an average of £1,000 each. The bank’s recommendations include the establishment of a collective victim reimbursement fund, financed by tech companies and banks, whose systems are exploited for perpetrating scams.
Moreover, Barclays proposes the creation of a cross-Government group within the Home Office to enhance coordination among regulators, policymakers, industry stakeholders, and companies across sectors. The bank also calls for mandatory preventive measures against scams, particularly for tech firms, transitioning from the existing voluntary approach.
In a bid for greater transparency, Barclays suggests that organizations should be mandated to publish their scam-related data, thereby empowering consumers to better understand the risks associated with using online platforms. The bank’s CEO, Matt Hammerstein, underscores the urgency of online safety as tech platforms, especially social media, become breeding grounds for an overwhelming majority of scams.