Due to the rise in online scams and bank scams over the years, most of the scams are emerging online, and online bank Scams are a huge threat. People are defrauded, manipulated, and looted because of online fraud. Nowadays, impersonation scams are one of the most booming scams, and a major part of the population is trapped in these scams.
Whereas the TSB, or Trustee Savings Bank, had mentioned the large hike in scams like impersonation, purchase fraud, and investment fraud, and according to them, they are the main drivers of the scams.
Impersonation scams have tripled on WhatsApp in a single year, whereas the Facebook Marketplace has seen double the number of fake listings. And according to Barclays, 77% of scams originate from social media, dating apps, and online marketplaces.
According to the bank, investment scams are rampant on Instagram and contribute up to 59% of all investment fraud cases, and it was the highlight of the news.
According to Santander, around 70% of frauds related to authorized push payments emerge on social media. With growing Santander fraud, there are options for refunded funds.
In 97 percent of the cases of online bank scams, money has been refunded, but there are some banks that have refunded but at a lower level. Jim Winters, the nationwide director of economic crime, said social media platforms have lacked security.
He further added, "Controls are yet to catch up with other industries, allowing criminals to all but freely target victims on platforms such as Marketplace and Whatsapp in particular."
According to the TSB, most social media platforms don’t have their own payment platforms, like Facebook Marketplace, so most users transfer money via bank transfer, where they lack payment protection options.
Conman uses multiple ways to dupe people, like SMS, email, offline techniques, and the most famous social media, and according to Meta, this is an "Industry wide issue."
The company said, "We don’t want anyone to fall victim to these criminals which is why our platforms have systems to block scams, financial services advertisers now have to be FCA authorised and we run consumer awareness campaigns on how to spot fraudulent behaviour."
Meta said they do work with the police if the users have reported the issue or filed the report, and they will proceed with the investigation. Learn more about such cases and get more updates on online scams from the scam economy podcast, where experts gather and share their advice and options.