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Tide calls for tax on social media and telcos to fund fight on fraud

Tide calls for tax on social media and telcos to fund fight on fraud

Business banking platform Tide has called on the government to introduce a tax on social media and telecoms companies to fund and train more police officers to tackle what it calls Britain's "fraud epidemic".

Fraud has soared in the UK over recent years, with total loses to scams hitting £610 million in the first half of last year. Much of this - £250 million - was down to Approved Authorised Payment (APP) fraud.

Last week, the government set out a new fraud strategy which will see the creation of a National Fraud Strategy with 400 new investigators.

However, this is "nowhere near enough" to tackle the problem, says Tide, which is proposing an anti-fraud tax on the value chain to fund the required law enforcement capacity. The levy would apply to social media and telecoms companies, where, says Tide, the majority of scams originate, as well as faster payment transactions.

This would fund UK law enforcement agencies and make it mandatory for them to investigate and prosecute scammers, including those based abroad, under a zero-tolerance policy.

The financial services sector has long complained that social media and telco firms have escaped responsibility for compensating the victims of financial fraud, pushing for online scams to be included in the government's 'Online Harms' bill.

TSB revealed last week that scams taking place on Facebook, Instagram, and WhatsApp make up 80 per cent of fraud cases within the bank’s three biggest fraud categories.

Tide is also calling for a "re-think" of the rules that force financial institutions to reimburse all victims of authorised fraud as well as the introduction of mandatory data sharing.

Oliver Prill, CEO, Tide, says: "The target to cut fraud by only 10% by the end of 2024 with another 400 police officers is nowhere near enough to combat the sheer scale of the problem and the damage done. This is why we are calling for a tax to fund action against what has become a terrible blight on the UK."

Comments: (2)

A Finextra member
A Finextra member 09 May, 2023, 10:29Be the first to give this comment the thumbs up 0 likes

There certainly needs to be a redistribution of wealth and most of these large fintechs are the source of much of the fraud.   The UK is lagging Europe in tackling Fraud - I attend these talking shops that are organised and listen to a lot of Jaw Jaw..... but there is no War War on Fraud....    The guys at www.Wefightfraud.org   they  could do with some serious funding when this fraud tax IS eventually levied.... Why dont we all write to our MP's on this??? 

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 10 May, 2023, 13:08Be the first to give this comment the thumbs up 0 likes

Happy to note that the Drunk Under Lamp Post regulation has gone beyond Bank pet whipping boy to include Social Networks and TELCOs but sad to note it hasn't gone far enough to cover Electric Company, et al. 

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