Banks demand cash from Google and Facebook to compensate fraud victims
Britain's biggest banks are demanding that Facebook, Google and telecom giants pay hundreds of millions of pounds to help reimburse victims taken in by scammers on social media. Barclays, TSB, Lloyds and Santander have warned that technology companies are not shouldering their share of the burden from the wave of online fraud gripping Britain.
They are backing a so-called "polluter pays" principle in which tech companies would be required to contribute to a compensation war chest for victims.
At present, banks sign up to a voluntary code to reimburse people who lose their life savings if they are taken in by criminals and the money cannot be recovered. Around £462m was returned to customers in 2020 and 2021.
Facebook, Instagram, Google and telecom companies currently pay nothing towards losses, despite more than three quarters of scams taking place on social media, auction sites or dating apps, according to Barclays data.
Writing for the Telegraph, Sian McIntyre, head of economic crime at the bank, said: “We would like to see a cross-sector pot funded by a polluter pays principle.
“Those companies that enable scams on their platforms or services should be putting money into that pot.”
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https://www.telegraph.co.uk/money/consumer-affairs/banks-demand-cash-google-facebook-compensate-fraud-victims/