Britain’s largest banks have told the Prime Minister that Facebook-owner Meta and other American technology firms should contribute to refunds for people who are defrauded after using their websites.
Tech companies should take more responsibility for stopping scams from taking place on their social media sites, Rishi Sunak has been urged in a letter signed by banks including Barclays, HSBC UK, NatWest and TSB.
Estimates suggest that around £2,300 was stolen from consumers every minute last year.
The banks said that online fraud posed a “strategic threat to the prosperity of the UK and impacts the credibility of, and confidence in, the economy and financial sector”.
In the letter, sent earlier this month and first reported by Sky News, the bank chiefs said: “It is having a material impact on how attractive the wider UK financial sector is perceived by inward investors, which as we know, is critical for the health of the City of London and wider UK economy.”
The comments come ahead of the introduction of new requirements for banks that will force them to reimburse victims of fraud within five days.
Under the current system – whereby banks sign up to a voluntary code of guidelines – less than half of victims are able to get their money back.
The new laws will not cover cases where victims were found to have played a role in the fraud or where there is gross negligence.
The Financial Services and Markets Bill is currently making its way through Parliament, with reimbursement requirements to come into effect next year.
