VICTORY! Social media giants finally promise to crack down on scammers - after our Campaign
- Social media companies have finally agreed to take responsibility for scam posts
- Twelve of the largest tech firms signed an agreement with the UK Government
- Firms must verify new advertisers and promptly remove any fraudulent content
Social media giants have been given six months to ‘significantly’ reduce the epidemic of scams on their platforms — or face action from the Government.
The warning is issued in Money Mail today by Security Minister Tom Tugendhat after a major breakthrough in our crusade against online crooks.
Money Mail’s Stop the Social Media Scammers campaign has been calling on the Government to force tech giants to better protect users from criminals who plague social media sites hunting for victims.
In a victory that could protect millions from online fraud, social media companies last week finally agreed to take responsibility for the scam posts poisoning their platforms.
Twelve of the world’s largest tech companies, including Facebook, Instagram and Amazon, signed a groundbreaking agreement with the Government to step up their efforts to crack down on fraud in the UK.
Fraud fight: Twelve of the world’s largest tech companies, including Facebook, Instagram and Amazon, signed an agreement to step up their efforts to crack down on fraud in the UK
Mr Tugendhat, who has been the driving force behind the agreement, says that Money Mail’s campaign has been ‘hugely important in getting us to this point’.
The ‘world first’ fraud agreement is gaining international attention from the Security Minister’s foreign counterparts, and he will present the charter to G7 ministers in Japan this weekend, he tells us.
Google, TikTok, Snapchat, YouTube and eBay are among those to have committed to taking further action to block and remove fraudulent content from their sites, in a bid to protect their users from online scams, fake adverts and romance fraud. Microsoft, X (formally Twitter), LinkedIn and Match Group have also signed the charter.
The new guidelines tech giants have agreed to should significantly reduce the number of scams on social media and ensure people are more protected, says Mr Tugendhat.
‘This is an enormously important step and one that should make us all safer,’ he adds.
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Companies have been given six months to implement the measures, which include working more closely with UK law enforcement and verifying a greater number of users.
The Government’s Joint Fraud Taskforce, led by the Security Minister, will hold companies to account after the six-month grace period.
Until now, tech giants have been resistant to change, Mr Tugendhat adds: ‘We have pushed the tech companies further than they wanted to go.
‘This is the first time anyone has asked them to take responsibility for the platforms they host.
‘The huge change here is they are recognising that responsibility, and that’s why they’ve been quite resistant to going as far as they’ve gone.
‘It is their responsibility to ensure their users are who they say they are, and not to magnify fraud. They must filter it out and respond to scams by stopping them.’
The new set of guidelines will require trading platforms, such as Facebook Marketplace, to offer or provide information on secure payment services that can be used for purchases made on their site.
In some cases, they do not offer secure payment systems, so customers lack protection when buying items advertised by other users.
For example, in the UK, Facebook Marketplace doesn’t have a built-in payment service, as eBay does with PayPal, or Amazon with its credit and debit card payment facility. So shoppers often use bank transfers to send money direct to sellers — putting them at far greater risk of being scammed.
For months, Money Mail has warned of an explosion of scams on the trading site and has called for a secure payment system to be put in place.
The firms must also verify new advertisers and promptly remove any fraudulent content. They will also increase levels of verification on online trading marketplaces. People using online dating services will be given the option to prove they are who they say they are.
It marks a victory for the Mail’s campaign, which has called for tech companies to set up tougher identity verification measures to stop fraudsters setting up social media accounts.
Until now, many social media giants have not sufficiently verified the identities of the people and companies who want to buy or sell on their platforms, which has left users vulnerable to scammers.
Some 80% of scams start online with the cast majority coming from Facebook, Instagram and Whatsapp - all owned by tach giant Meta
Mr Tugendhat says: ‘I’m very grateful for the work that the Daily Mail has done — it has been incredibly important. The newspaper has been pushing for all of these aspects for a long time and it has made a huge difference in getting us to a great place with the charter.’
Under the charter, all 12 companies have agreed to work closely with UK law enforcement to help track down criminals operating on their platforms, and will make it easier to quickly identify and remove fraudulent content from their sites. They will also respond to law enforcement requests to provide information on persistent offending.
Each of the 12 tech companies must have a dedicated fraud officer, who will then have a much better connection with UK law enforcement and intelligence services, Mr Tugendhat says.
He adds: ‘We’ve been very clear with tech companies that the charter must make a significant difference to the levels of fraud on their platforms. So we’re going to be watching the results carefully. And if they fail to meet expectations, then we’ll have a look at other measures as necessary.
‘If any of these aspects don’t deliver as we intend, we can act. But I’m confident they now take their responsibilities seriously.’
However, the new charter was signed on a voluntary basis, so it remains to be seen how much action will be taken.
Banking industry leaders say they are concerned about whether the voluntary measures will be fully implemented.
One insider, who asked to remain anonymous, says: ‘There’s a degree of scepticism at the moment about whether it’s going to be fully realised and the tech companies will step up. These are excellent measures that we’ve all been calling for, but the proof is in the pudding.’
Until now, many social media giants have not sufficiently verified the identities of the people and companies who want to buy or sell on their platforms, which has left users vulnerable
The agreement comes after the Mail hosted a major fraud summit in London last month, attended by Mr Tugendhat, industry group UK Finance, senior bankers and politicians.
Industry leaders warned that social media platforms were failing to take responsibility for fraud —and were likely to continue to do so unless the Government enforced tough new rules.
Liz Ziegler, fraud prevention director at Lloyds Banking Group, says the agreement is a ‘step in the right direction’, because these social media platforms facilitate organised crime.
‘This action is vital given 80 per cent of scams start online, and we look forward to seeing tech firms move with seriousness and pace to address the fraud their users are falling victim to, with the Government holding them to account.’
Paul Davis, director of fraud prevention at TSB, says it is crucial tech companies do far more to stop scammers.
‘It’s down to all signatories to match their commitment with meaningful action: putting protections in place to reduce fraud and protect millions of consumers.’
A spokesman at Starling Bank says the measures fell short of forcing tech firms to reimburse victims of scams on their sites.
‘This is a welcome step, but we would like to see the measures go further so that social media, online marketplace and telco companies that are key enablers of this fraud are made to contribute to the reimbursement of victims.’
Jim Winters, of Nationwide Building Society, says that success ‘must be judged through results’, but that tech companies may still lack real financial incentive to drive meaningful change.
Ben Donaldson, of UK Finance, says: ‘We really want to see the public being better protected from these criminals, but we need to ensure the Government makes robust enough checks on the tech companies.’
