Banks warn of significant increase in online scams

Banks warn of significant increase in online scams

Banks are warning of a surge in online fraud in 2022, with much of it originating on social media and dating apps. The number of scams on social media, online marketplaces and dating apps has increased to 77%, according to Barclays, which cited figures from the banking industry.

TSB said a large increase in impersonation, investment and purchase fraud cases were the main drivers of this trend. The bank found impersonation scams on WhatsApp had tripled in a year, while fake listings on Facebook Marketplace had doubled.

Meta, the parent company of WhatsApp and Facebook, admitted that fraud was an “industry-wide issue” and said it had put systems in place to block scams.

ALSO READ: Central Bank of Nigeria boosts supply of new notes to banks

It added that financial services advertisers must be authorised by the Financial Conduct Authority and that it runs awareness campaigns to help people spot fraudulent behaviour. Meanwhile, Lloyds Banking Group’s fraud prevention director, Liz Ziegler, said banks are facing an “epidemic of scams”.

TSB is calling for social media and telephone companies to take financial responsibility for the rising levels of fraud taking place on their platforms.