Facebook’s parent company Meta announced on Wednesday its collaboration with two leading banks in the U.K. to establish an information-sharing arrangement aimed at protecting consumers from fraud.
Meta revealed plans to expand its Fraud Intelligence Reciprocal Exchange (FIPE), which will enable U.K. banks to share information directly with the social media company. This initiative is intended to assist Meta in identifying and dismantling fraudulent accounts and coordinated scam operations.
The technology has already been tested with several lenders in the U.K. According to Meta, data provided by British banks NatWest and Metro Bank facilitated the removal of 20,000 accounts involved in a concert ticket scam network targeting individuals in the U.K. and the U.S.
Currently, NatWest and Metro Bank are the only two U.K. banks participating in the fraud information-sharing pact. However, Meta indicated that additional banks are expected to join this initiative in the future.
Nathaniel Gleicher, Meta’s global head of counter-fraud, emphasized the importance of collaboration between banks and social media platforms in combating fraud. “This work has already led to actions against thousands of scam accounts, highlighting the significance of cooperation in addressing this societal issue,” Gleicher stated. He added that by sharing relevant information, financial institutions can provide unique insights that Meta can use to train its systems to address scams on a global scale.
Meta has been under pressure from U.K. banks to enhance its efforts to curb scammers on its platforms, which include Facebook, Instagram, and WhatsApp. In 2022, the British digital bank Starling boycotted Meta and withdrew advertising due to concerns over the company’s perceived inadequacy in handling fraudulent financial advertisements.
Meta’s platforms have often been exploited by scammers attempting to defraud users through various schemes. A common method is authorized push payment fraud, where criminals pose as legitimate individuals or businesses to deceive users into sending them money.
The company maintains policies that prohibit the promotion of financial fraud, including loan scams and schemes that promise high returns. Meta also bans advertisements that guarantee financial returns or promise unrealistic results.
