A senior HSBC executive has become the latest banker to call on technology and social media companies to help foot the bill to compensate victims of Authorized Push Payment (APP) fraud.
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APP fraud has increased significantly in recent years, with losses in the UK reaching more than $500 million in 2023. To address this, regulators are introducing new rules for the banking industry that, from October, will require the majority of funds lost to APP fraud to be refunded to victims.
However, British banks have long advocated for major technology companies, social media and telecommunications companies to take more responsibility for fraud that originates from their platforms. According to UK Finance, 76% of APP fraud originates online and a further 16% originates from the telecommunications sector.
HSBC UK’s head of fraud, David Callington, has now joined the fray Guardian: “The broader ecosystem and the key players in that ecosystem need to be held accountable,” adding, “You.” [tech firms] need the financial incentive.”
Last year, 11 technology and social media companies signed up to a UK Online Fraud Charter to tackle the rising number of fake advertising and romance scams.
However, UK Finance has called on the government to take tougher action, relying on this voluntary charter for a bill.
Callington says: “What we would be calling for is a shift of some of those obligations into regulation, so that other sectors that are part of the ecosystem actually have a duty to take action and protect our shared customers and users.”
