Here, we take a closer look at the report and explain why swifter action is needed to ensure tech firms are held responsible for fraud that originates on their platforms.
Meta is a hotbed for purchase and romance scams
Facebook, Instagram and WhatsApp were linked to 54% of reported scam incidents (119,000 cases) and 18% of total losses (£63m) in 2023, equivalent to roughly £1 in every £5 lost.
Facebook was the most commonly used platform for purchase scams, romance scams, and advance fee scams (where the fraudster convinces the victim to pay a fee to release a much bigger payment or prize, such as an inheritance or 'free' holiday). Instagram was the most commonly used platform for investment scams.
Other platforms named in the PSR's report include Snapchat (4% of cases), Twitter/X (3%) and Google (2%). The data was collected from victims reporting to their payment firm where they believe the scam started.
Scams by sector
The data also reveals that abuse of the telecoms industry is proving costly, as fraudulent calls and texts accounted for 31% of total losses, despite being logged in only 12% of cases. Emails also led to disproportionately high losses of £35m.
The PSR's head of policy, Kate Fitzgerald, says: 'Our report highlights how major platforms are being exploited by fraudsters to deceive victims, often with devastating effects.
'By publishing this data, we want to drive real change across industries, tackling the root causes of APP scams. Preventing scams before they happen is the best way to protect consumers and reduce harm.'
The PSR plans to publish this data annually and will consult in 2025 on improving how fraud data is collected.
A separate PSR study showed that victims thought technology companies were in part responsible for scams.
Furthermore, only 22% were satisfied with the response of technology companies, compared to 74% for banks.
And 41% said they had lost trust in social media – four times as many as had lost confidence in banks.
Will tech firms be held accountable?
it will be years before specific protections against fraudulent advertisements take effect,A meaningful fraud strategy
Rocio Concha, Which? director of policy and advocacy, says: 'Fraud continues to cause its victims misery and, as this research shows, scammers are successfully exploiting social media platforms and telecoms companies to target consumers.
'It is right that online platforms should take more responsibility for removing the fraudulent content that originates on their sites and ensnares so many users, and the Online Safety Act has the potential to do that, while giving Ofcom the power to hand down multimillion-pound fines to platforms that fall short of the required standards.
'However, the regulator must speed up the timetable for implementation as, based on current plans, the codes of practice for fraudulent advertising may not be enforced until 2027, leaving consumers vulnerable for longer.
'Tackling fraud will not be done by one sector alone. The fraud minister should publish a meaningful fraud strategy as a matter of urgency, bringing together the tech, banking and telecoms sectors to better protect consumers from fraudsters.'
Find out more:source https://www.which.co.uk/news/article/more-than-half-of-bank-transfer-scams-originate-on-meta-when-will-tech-firms-face-fines-as0AB6F6KZxs