Barclays is calling on tech companies to be liable for scams and reimburse victims, arguing that it financially incentivises scam prevention.

The recommendation comes following the publication of research which found that 78 per cent of Brits want to see tech companies being more proactive in preventing scammers on their platforms.

Around 80 per cent of those surveyed said they feel unsafe on social media due to scammers, with the report also finding that tech platforms are the source of 87 per cent of all scams.

The Bank said policy changes and legislation are needed to prevent scams.

Along with reimbursing victims, Barclays suggested the creation of a cross-government group within the home office to coordinate regulators, companies and industry groups to fight scams. While anti-fraud groups exist, Barclays said they are fragmented and working in silos.

The bank also recommended creating a victim reimbursement fund financed by platforms used by scammers and make companies publish their scams data to inform customers about the risks involved in using their platforms.

Additionally, Barclays said that that the prevention of scams should be made mandatory for tech companies instead of the voluntary measures proposed by the government.

Matt Hammerstein, chief executive of Barclays UK, said: “Our data shows that tech platforms – particularly social media – are now the source of almost all scams. However, there is no current legislative or regulatory framework obliging the tech sector to support the prevention of these crimes, as there rightly is for banks.

“Without the joint help of tech organisations, the Government, and regulators, we risk enabling the unchecked growth of what is now the most common crime in the UK, hurting countless individuals, and costing our economy billions each year. We can only drive back this epidemic – and protect UK competitiveness – by stopping scams at their source, preventing the flow of funds to organised crime.”

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