Online platforms exposing users to 'avalanche of scams'
Online platforms like Facebook and Google are exposing users to an “avalanche of scams”, a consumer coalition has warned as it urged the Government to hold them to account.
The group, led by consumer group Which?, said that the platforms play a “pivotal role” in allowing fraudsters to target their victims by hosting and promoting fraudulent content online.
The coalition, which also includes the police, figures from the banking and insurance industry and charities, is calling on the Government to include fraud in its upcoming Online Harms bill.
The bill aims to provide oversight and accountability of tech companies, but campaigners say it is an opportunity to deal with the rapidly growing problem of fraud.
Last year £479 million was lost to bank transfer scams, while Action Fraud, the police reporting service, estimates that 85 per cent of all scams in the first half of 2020 involved the internet.
Anabel Hoult, chief executive of Which?, said: “The biggest online platforms have some of the most sophisticated technology in the world, yet they are failing to use it to protect scam victims who are suffering devastating financial and emotional harm due to the flood of fake and fraudulent content posted online by criminals.”
Martin Lewis, of MoneySavingExpert.com, said: “The Government has a chance to at least deny them [scammers] the ‘oxygen of publicity’ by making big tech responsible for the scammers adverts it is paid to publish.”
David Postings, chief executive at UK Finance, the banking trade body, said: “It’s not right that online giants are effectively profiting twice – once from criminals marketing scams on their platforms and again from organisations having to advertise fraud warnings to consumers.”
The 17 organisations, which include Age UK and the Carnegie Trust, have written to the Home Secretary and Digital Secretary.
A Government spokesman said it is working closely with other groups to tackle the problem, including services to remove malicious websites and the recruitment of specialist police officers.
Google said that last year it removed or blocked 123 million financial services ads. Last night it announced it is the first major tech firm to join Stop Scams UK, a cross-industry body dedicated to tackling the issue. It will also provide advertising “credits” to public bodies to raise awareness.
It has taken steps to restrict firms from advertising unrealistically high returns on investments.
Facebook said works to proactively detect scams and to block fraudulent advertisers. It disables billions of fake accounts every year, a spokesman said.
