Major UK bank TSB has called on social media giant Meta to take action against the rising wave of investment fraud and online scams on its platforms. Specifically, TSB has revealed that the scale of social media scams on Facebook, WhatsApp, and Instagram is massive. Accounting for 80% of fraud cases. As a result, with 5 million customers in the UK, TSB has warned consumers to be cautious of fraud taking place through social media.
Banks have been warning for years about the dangers of social media scams, but TSB is one of the first to break cover and directly call on Meta to clean up its act. Subsequently, Paul Davis, Director of Fraud Prevention at TSB, stated: “Social media companies must urgently clean up their platforms to protect the countless innocent people who use their services every day.”
According to reports, Facebook Marketplace is the biggest hotbed of fraud, accounting for 60% of purchase fraud cases. Followed by Instagram, which makes up 18% of cases. This trend highlights the need for Meta to take immediate and effective action to prevent these scams.
The Growing Threat of Online Scams
Meanwhile, a new report by Nationwide has highlighted the growing threat of investment fraud. The study revealed that the average victim of investment fraud in 2022 reported losses of £5,000. It also indicated that:
People over 65 years old accounted for 25% of reported cases in 2022. Down from 35% in
2021.
In contrast, 25 to 34-year-olds recorded 16% of cases, up from 12% in 2021. Nationwide singled out the South East as an investment-scam hotspot, with Kent (6%), London (6%), and Essex (5%) recording the most victims.
This report raised concerns that more people are at risk of investment fraud as the cost of living takes its toll. A survey showed that:
– 24% of people surveyed admitted they’d be willing to take more risks to make money.
– Additionally, 61% would agree to an investment promising to double their money in a year.
– Shockingly, 8% said they’d invest immediately to avoid missing out. Without doing any of
their own research.
Be Vigilant
These worrying trends highlight the urgent need for individuals to be vigilant about potential scams on social media platforms. And to exercise caution when considering investment opportunities. Furthermore, the responsibility must also lie with social media companies like Meta to tackle these issues head-on. Only by working together can we hope to combat the growing threat of online scams, and protect the countless innocent people who use social media every day.
If you think you may be the victim of investment fraud, or you are not seeing a returns on your funds; call us now on 020 7504 1300
Scam Alert
This message serves as a warning against potential online scams, including website scams and investment scams. Please exercise caution and conduct thorough research before engaging in any online transactions or investments. Protect your personal and financial information from fraudulent activities, and consult with trusted sources for advice.
Insolvency and Law Peter Murray is an award-winning consultancy firm specialising in Insolvency, debt purchasing and business rescue.