HSBC Collaboration For Victims of APP Fraud
In recent years, there has been a significant increase in the prevalence of APP fraud, resulting in losses exceeding $500 million in the United Kingdom in 2023. In order to address this issue, regulators are implementing new regulations for the banking sector. Beginning in October, the overwhelming majority of the funds that are lost due to APP frauds will be reimbursed to the victims.
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Nevertheless, UK banks have been advocating for a long time for major tech, social media, and telcos to assume a greater degree of responsibility for fraud that originates from their platforms. UK Finance reports that 76% of APP fraud is generated online, with an additional 16% occurring in the telecommunications industry.
In order to mitigate the increasing prevalence of scams originating from false advertisements and romance fraud, eleven technology and social media companies committed to the UK Online Fraud Charter last year. Nevertheless, UK Finance has urged the government to adopt a more stringent stance, utilizing this voluntary charter as the basis for a bill.
Industry’s Comments
David Callington, the head of fraud at HSBC UK, has recently joined the conversation, stating to the Guardian that “the wider ecosystem, and key players in that ecosystem, have to be held to account.” He also stated that “they [tech firms] need the financial incentive.” According to Callington: “What we would urge for is a shifting of some of those obligations into regulation, so there is an actual obligation on other sectors who are part of the ecosystem to take action and protect what are our common customers, our common users.”
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