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TSB calls on tech platforms to tackle scam adverts

TSB calls on tech platforms to tackle scam adverts

With fraud Britain's fastest growing crime, TSB is calling for banks to publish their reimbursement rates and for tech platforms to do more to remove scam adverts.

According to industry body UK Finance, investment scams increased by a third last year and losses increased by over two fifths, largely due to increasing scam adverts hosted on online platforms.

Banks have become increasingly frustrated that they are bearing the brunt of the consequences when it comes to financial fraud. Specifically, they want the government to reverse its decision not to include online scams in its new 'Online Harms' bill, which aims to force firms - through the threat of massive fines - to improve internet safety.

Now, TSB is taking aim at forthcoming online advertising guidance, which it says should include a requirement for social media platforms and search engines to remove online scam adverts and influencer endorsements.

The bank says online platforms should also be mandated to vet advertisers and to publish the data showing the time taken between a scam being reported and the volume of scams removed on social media and online platforms.

The call is part of TSB's three-point plan to tackle fraud, which also calls for all banks to publish its customer reimbursement rate on posters in branches and online to boost transparency on how each lender performs on refunds.

The final prong simply states that "all industries - not just banks - should be encouraged to end the victim-blaming approach to fraud".

The UK's biggest banks have been accused of an inconsistent approach to reimbusing customers of unauthorised push payment fraud under the PSR-mandated Contingent Reimbursement Model Code. The amount a particular bank customer receives is very dependent on the bank they are with, and this can range anywhere from 5 to 90%.

Debbie Crosbie, chief executive, TSB, says: "Two years ago, TSB introduced the UK’s first Fraud Refund Guarantee in recognition that fraud had become increasingly sophisticated and that customers deserved protection from losses.

"Today, we’re setting out a hard-hitting plan for collective action across banks, telecoms companies and online firms to turn the tide against the UK’s fastest growing crime."

Comments: (1)

Jeremy Light
Jeremy Light - pingNpay - London 22 April, 2021, 10:00Be the first to give this comment the thumbs up 0 likes

Banks should be tackling fraud by identifying and shutting down the fraudsters' bank accounts - better KYC and better account and transaction monitoring, within and across banks. If AI is as powerful as its made out to be, then banks should be able to do this much more effectively with AI.

It is difficult to see how publishing bank reimbursement rates has any effect on reducing fraud and fighting crime; but if banks were forced to publish the number of their accounts used by fraudsters each year and the value of fraud processed by them, then that would galvanise them in to action.