Banks have warned of a significant increase in fraud in 2022, with much of it occurring online.
According to Barclays, 77% of frauds are now taking place on social media, online markets, and dating apps.
The primary factors, according to the TSB, were an increase in cases of impersonation, investment, and purchase fraud.
It discovered that impersonation frauds on WhatsApp had tripled in a year, while false listings on Facebook Marketplace had doubled.
It also claimed that there had been “huge fraud spikes” on Meta-owned platforms such as WhatsApp and Facebook.
According to a Meta representative, fraud is “an industry-wide issue.”
“Scammers are increasingly sophisticated in their methods of defrauding people, including email, SMS, and offline,” they claimed.
“We don’t want anyone to fall victim to these criminals, which is why our platforms have systems in place to detect and block scams.
Financial services advertisers must now be FCA (Financial Conduct Authority)-approved, and we run consumer awareness campaigns on how to spot fraudulent behavior.”
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‘Epidemic of scams’
According to Liz Ziegler, Lloyds Banking Group’s fraud prevention head, banks are experiencing an “epidemic of scams.”
“With more than 70% of fraud beginning with contact through the major tech platforms,”
She said, “These companies must be held accountable for stopping scams at the source and making things right for innocent victims.”
Previously, NatWest CEO Alison Rose informed the Treasury Select Committee that three million people in the UK would be victims of fraud by 2022.
“We have seen an 87% increase in fraud,” she added, adding that NatWest believes 60% of frauds originate on social media and digital platforms.
Meanwhile, the TSB reported that 60% of purchase fraud instances it is aware of occur on Facebook Marketplace.
When a fraudster offers an item they never intend to send to the buyer, two-thirds of impersonation fraud cases occur on WhatsApp.
According to the bank, it issued 2,650 refunds in similar circumstances last year.
According to Paul Davis, the TSB’s director of fraud prevention, social media companies “must urgently clean up their platforms” to protect consumers.
“It’s past time for social media and phone companies to accept financial responsibility for the rising levels of fraud on their platforms,” he said.