Ebay UK has become the first major tech firm to consider joining cross-sector anti-fraud organisation Stop Scams UK as pressure from MPs, police and regulators mounts.
Stop Scams UK is a new group designed to “take action to stop scams at source” which counts the UK’s biggest banks and telecoms companies as its members.
This unlikely alliance has called on major tech companies like Ebay and Facebook to do more to tackle fraud on their platforms as rates have skyrocketed throughout the pandemic.
According to UK Finance consumers lost £1.2 billion to fraud last year.
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Banks and telecoms companies have argued that they are bearing the brunt of this surge, with NatWest stating that it now spends as much detecting and compensating fraud victims as it does operate its entire branch network.
A huge portion of these scams take place on platforms like Ebay and Facebook marketplace, seeing customers pay for items which never arrive.
However, it is often left to banks to compensate customers, rather than the tech giants themselves, causing Stop Scams UK to call on them to do more.
Ebay has now said it will be the first major tech company to consider joining the group in the face of growing pressure from multiple fronts.
Speaking to the Financial Times, Ebay said it was “open to supporting Stop Scams UK”, while Facebook said it has “met with and continue(s) to engage with Stop Scams UK”.
Stop Scams UK’s board director and head of fraud at TSB Ashley Hart added: “There’s a big debate about reimbursement, but the discussion is only going to be solved to everyone’s satisfaction by reducing the amount of fraud that takes place in the first place”.