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Meta will share data with UK banks to tackle online fraud

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Meta, Facebook’s parent company, is expanding its partnership with UK banks to combat rising online fraud by sharing financial and transactional intelligence. This comes amidst growing pressure from financial institutions and politicians for tech companies to take a more active role in preventing scams.

On Wednesday, Meta announced the wider rollout of its Fraud Intelligence Reciprocal Exchange (FIRE), a platform designed to facilitate data-sharing between banks and the tech giant.

Through this initiative, banks can provide Meta with transaction intelligence to help identify and block fraudulent activities. The decision follows a successful pilot with NatWesyt and Metro Bank, which led to the closure of 20,000 accounts linked to malicious websites.

First reported by the Financial Times, this move by Meta comes at a time when the tech industry is under heightened scrutiny for its role in enabling authorised push payment (APP) fraud. This form of fraud typically involves victims being tricked into transferring money to criminals, often through deceptive online advertisements.

Nathaniel Gleicher, Meta’s global head of counter-fraud, acknowledged that while the FIRE initiative is a positive step, it won’t solve the problem entirely. “No single approach will drive down fraud by itself,” Gleicher stated, adding that more banks are encouraged to participate in the program.

Banks and other financial institutions believe that forcing tech companies to share the cost of reimbursement would be a stronger incentive for them to take action against fruad.

The expansion of FIRE has been welcomed by consumer advocacy groups like Which?, but there are calls for even greater collaboration across industries.

While Meta is a signatory to the Online Fraud Charter, which seeks to reduce fraud in partnership with the UK government, the company faces criticism from banks and political figures.

The Labour Party is concerned that tech companies are not doing enough to prevent fraud or compensate its victims. Some are pushing for new regulations requiring tech platforms to share the financial burden of fraud-related reimbursements.

However, despite Meta’s efforts, APP fraud continues to rise. Under new rules set to take effect in October, banks and payment companies will be required to reimburse the fraud victims for claims of up to £85,000.

Some financial institutions argue that requiring tech companies to share in the costs of these reimbursements would create a stronger incentive for them to crack down on fraudulent activity.

As the tech industry faces mounting pressure to curb online scams, Meta’s collaboration with UK banks may serve as a critical step in addressing the widespread issue of fraud on social media platforms.

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Kumar Hemant

Kumar Hemant

Deputy Editor at Candid.Technology. Hemant writes at the intersection of tech and culture and has a keen interest in science, social issues and international relations. You can contact him here: kumarhemant@pm.me

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