Charles McManus, CEO of ClearBank, urges Meta to tackle online fraud.
- Social media platforms like Facebook and Instagram contribute significantly to fraud cases.
- Major financial institutions invest heavily in fraud prevention, expecting tech firms to participate.
- Revolut demands Meta’s accountability in reimbursing fraud victims.
- UK government pressure mounts on social media companies to enhance fraud controls.
Charles McManus, the CEO of ClearBank, has publicly called for Meta, the parent company of Facebook and Instagram, to step up its efforts in combating online fraud. According to McManus, fake and clone accounts on these platforms are a significant source of fraudulent activities, and social media firms need to assume responsibility in addressing this issue.
Statistics indicate that a remarkable 78% of push payment fraud occurs online, with an estimated 70% linked to Meta’s platforms. This is in stark contrast to other platforms, which record fraud figures as low as 0.05%. McManus highlighted that these statistics demonstrate the feasibility of fraud prevention if social media companies take proactive measures.
Financial institutions have collectively spent over £30 billion on fraud controls. Despite these substantial investments, McManus emphasised the need for social media companies like Meta to play an active role in curbing the fraud problem, as they have the financial and technological capabilities to do so.
The notable fintech company Revolut has also criticised Meta’s handling of digital fraud, describing recent initiatives as inadequate. Revolut has pressed for Meta to take financial responsibility for fraud, arguing that financial institutions unfairly bear the burden of reimbursing victims. The fintech community continues to pressure Meta to take decisive action.
The prevalence of fraud in the UK has more than doubled, with losses exceeding £2.3 billion in 2023, making it one of the worst years for scams in two decades. McManus expressed optimism, noting that Meta appears to be recognising the issue and taking initial steps towards resolution.
There is widespread demand for Meta to proactively engage in fraud prevention tactics and work alongside the financial sector to reduce online scams.
