Tech firms asked to clarify fraud and scam prevention controls
The UK’s Treasury is grilling tech giants Google (GOOGL),
eBay (EBAY), Facebook (FB), and Amazon (AMZN) on what they are doing to fight
economic crime, prevent fraud, and protect consumers on their platforms
Treasury committee chair Mel Stride has written to the
companies following an evidence hearing last month as part of an inquiry on
economic crime.
“There has been a huge rise in online crime and, as a
committee, we want to gain a clearer understanding of what is needed to ensure
tech platforms are safe spaces for people to operate and not fall victim to
scams or fraud,” he said.
“Notwithstanding the efforts already being made by tech
platforms such as Google, eBay, Facebook and Amazon, I am keen that they spell
out in more detail what they are doing to protect their users from online fraud
and advertising scams, and how they are tackling issues such as the online
promotion of tax avoidance schemes.”
The committee wants to know details about the firms' online
fraud steering group and meetings with government departments about economic
crime. It also wants to know how the companies are compensating their customers
who have been victims of financial fraud.
It has asked all companies what policy they have regarding
the promotion of tax avoidance and evasion on their platform.
Some of the questions relate to the UK's Financial Conduct
Authority (FCA). The committee has asked each company how much the FCA paid
them in the the last three years to warn their users about unauthorised
advertisements, and if any other public sector bodies paid them for financial
crime-related advertising.
Stride's letters have asked for a response by 18 October.
In last month's hearing, Amanda Storey, director, trust and
safety at Google, said "scams and fraud are organised crime, much like
identity theft or hacking."
She said the company is "evolving our policies over
many years to tackle financial services issues in terms of our
advertising."
"Any advertiser wanting to target a UK user with a
financial services ad has to be FCA authorised and has to pass identity checks
before it can run that ad."
At the same hearing, Gaon Hart, head of public policy,
customer trust, UK at Amazon told the committee Amazon has "three broad
types of scams."
"You are talking about the customer support scams that
we see, where someone pretends to be from Amazon or from another organisation,
and sits there and tries to get access to somebody’s details."
He said there are also recruitment scams and retail fraud,"which
is fraud on the site by either sellers or buyers either not sending the goods
or, alternatively, not paying for the goods, essentially."
Earlier this year the UK introduced a Digital Markets Unit
to enforce a new code to govern the behaviour of tech giants that currently
dominate the market.
The unit became operational in April, but it will only gain
the powers it needs if MPs vote to grant them, and that could take as long as
2022.
Back in May a coalition of organisations urged the UK
government to use the Online Safety Bill to protect people from an “avalanche”
of online scams.
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