Industry leaders demand Meta take stronger action against fake accounts to combat fraud.
- ClearBank CEO highlights social media’s role in push payment fraud prevalence.
- McManus points out significant fraud originates from Meta-operated platforms like Facebook.
- ClearBank joins other financial institutions in urging Meta to share financial responsibility.
- UK fraud levels soar, intensifying calls for proactive measures from tech giants.
The financial sector is pressing Meta, operator of major social media platforms, to address the issue of fake accounts as a key step in tackling fraud. Charles McManus, CEO of ClearBank, emphasises the necessity for social media companies to actively participate in fraud prevention efforts. McManus argues that by eliminating fake and duplicate accounts, platforms can significantly reduce fraud.
In his comments to UKTN, McManus underscored the substantial investment banks have made in fraud controls, exceeding £30bn. Despite these efforts, he notes, a considerable portion of push payment fraud—approximately 78%—originates online, with Meta’s platforms accounting for 70% of these cases. Such figures starkly contrast with the 0.05% observed on other platforms, suggesting a need for Meta to enhance its fraud prevention measures.
ClearBank’s call aligns with similar demands from Revolut, another major fintech, which recently criticised Meta’s measures against digital fraud as inadequate. Revolut insists that Meta should bear financial responsibility for fraud cases, proposing that financial institutions should not be solely accountable for reimbursing victim losses.
McManus also recognises the tools available to Meta, reinforcing the argument that there is no financial or technical barrier preventing the company from addressing the issue. He notes that while some initiatives have begun, the persistence of live fake accounts highlights a need for more comprehensive action.
Fraud in the UK, according to BDO, more than doubled to £2.3bn in 2023. As pressure mounts, McManus believes Meta has started acknowledging the problem, but he stresses the demand for more decisive and immediate action to mitigate fraud risks effectively.
Addressing fake accounts on platforms like Facebook is vital for lowering fraud rates, urging Meta’s proactive engagement.
