Investment fraud has become rampant on social media platforms, with Instagram being the primary hub for scams, accounting for 60% of cases, followed by Facebook at 22%. TSB, a bank, is urging social media companies to take immediate action in order to protect their users and make transactions more secure. Paul Davis, TSB’s Director of Fraud Prevention, emphasizes the need for greater platform security and suggests that social media and telephone companies should bear financial liability for the increasing levels of fraud on their platforms. Davis proposes a “polluter pays” approach that would encourage these companies to be more vigilant in reducing fraudulent activity and better safeguarding consumers in the UK.
The government has also recognized the severity of the issue and announced plans to tackle text scams by involving intelligence agencies. The Home Secretary, Suella Braverman, states the importance of bringing more fraudsters to justice and reveals the government’s intention to ban devices that facilitate mass scam texts and untraceable calls. The proposal also includes a ban on cold calling for financial products and stricter regulations on number spoofing. Braverman highlights the upcoming Online Safety Bill, which will hold technology platforms accountable for protecting users from fraud. Under the legislation being considered in the House of Lords, errant technology firms and social media platforms that fail to prevent fraud could face fines of up to 10% of their global turnover. These laws are expected to come into effect within the next year.
Both Braverman and the Prime Minister are united in their aim to block scams at their source, enhance protections for individuals, and strengthen enforcement to prevent such heartless crimes and ensure justice prevails. By addressing the issue proactively, they hope to significantly reduce the occurrence of investment fraud and safeguard the interests of the public.
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