Rachel Reeves calls on big tech firms to tackle online fraud costing Brits billions

Key Points:

Rachel Reeves demands action from big tech and telecom companies to combat online fraud.

Firms like TikTok, Meta, NatWest, and BT urged to step up in the fight against fraud.

Government gives banks extra powers to investigate suspicious payments.

Joint Fraud Taskforce established to tackle online fraud.

Rachel Reeves, the Chancellor, is set to urge major tech and telecom companies to take greater responsibility in addressing the online fraud that costs Britons billions of pounds annually. In her upcoming Mansion House speech, Reeves will call for all companies in the Joint Fraud Taskforce to provide progress reports by next March on efforts to combat this issue more effectively and efficiently.

The Treasury is pressuring firms like TikTok, Meta, NatWest, and BT to enhance their efforts in the fight against fraud. A Treasury source emphasized the government's zero-tolerance stance towards criminals profiting from scams and highlighted the expected role of online platforms and telecom companies in this crackdown.

Recently, ministers granted banks extended powers to investigate suspicious payments, allowing an additional 72-hour window before processing flagged transactions. This measure enables bank staff to contact potential victims to verify payments, aiming to prevent financial losses due to fraudulent activities.

According to data, 43 million adult internet users have encountered suspected online scams, with one in five victims losing over £1,000. Reeves advocates for a collaborative approach, with tech and telecom firms collaborating closely with law enforcement and banks to combat fraud effectively.

The Online Safety Act empowers authorities to impose significant fines on companies failing to address online fraud adequately. Research indicates that consumers suffered £8.3 billion in losses to online fraud last year, primarily targeting online transactions and financial services.

The establishment of the Joint Fraud Taskforce in late 2021 aims to unite the private sector, government, and law enforcement in the fight against fraud. Studies show that men, younger adults, and individuals with children in their households are more likely to encounter online scams, with social media and email being common initial points of contact for fraudulent activities.