TSB is warning consumers to remain wary of fraud that is taking place through Facebook, WhatsApp, and Instagram, as the bank reveals scams that come through these Meta-owned companies account for 80% of all fraud cases within the three biggest fraud categories at TSB.

According to the bank, WhatsApp Friends and Family fraud rocketed by 300% in just a year.

Further, fraud on Facebook Marketplace has nearly doubled.

Purchase Fraud 

TSB found that 80% of purchase fraud cases at their bank involved scams that took place through Meta’s platforms, with three fifths (60%) of the cases coming from Facebook Marketplace, followed by Instagram (18%).

Fraud from scam activity on Facebook Marketplace doubled (97%) in one year – TSB refunded 2,100 cases from this platform alone under its Fraud Refund Guarantee.

The doubling of cases that came from Facebook Marketplace within TSB’s data is cause for concern across the banking sector – as TSB fraud experts point to the lack of a payment platform,
which prevents consumers completing transactions securely.

TSB is pushing for minimal obligations on platforms to vet adverts and profiles. An apparent lack of these has made it easier for fraudsters to place scam adverts with ease.

Impersonation Fraud

TSB data shows scam activity on Meta platforms led to 86% of impersonation fraud cases over the year – driven by a sharp increase in WhatsApp-based friends and family fraud.

WhatsApp alone accounts from two-thirds (65%) of TSB cases within this category, followed by Facebook (13%) and traditional text messages (13%).

The increase in WhatsApp fraud cases by 300% in just a year lead to over 550 refunded cases by TSB.

TSB fraud experts are urging vigilance to any unsuspected messages claiming to be members of your family, or close friends. They advise contacting the individual directly, if possible, before ever sending a payment.

Investment Fraud

Scams taking place through Meta account for almost nine in ten (87%) of all investment fraud cases at TSB.

Six in ten cases (59%) originated from Instagram scam activity, followed by Facebook (22%). Snapchat, which is not owned by Meta, made up almost one in ten (9%) of cases.

TSB fraud experts urge potential investors to stick to recognised investment platforms and to steer clear of social media ‘get rich quick’ schemes and too-good-to-be-true offers.

TSB’s Campaign for Fraud Refunds 

The bank is calling for an increase of refunds across the board, calling on other banks to match their fraud refund scheme.

With the high levels of fraud generated by other sectors, TSB believes that consumers cannot wait another 12 months for vital refund protections to be brought in by the Payment Systems
Regulator.

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Following the publication of the Government’s fraud strategy, TSB beleives more should be done to hold social media companies to account.

Part of the strategy is making fraud refunds more common and easy to attain across the board.

Further, the government is calling on tech companies to increase consumer protections – tough penalties may result for companies who do not.

Myles Fitt, Spokesperson, Citizens Advice Scotland, said: “We support TSB and all other agencies who are in the fight against fraudsters. Sadly the growth in online activity over the years has meant means that scams are very prevalent. The key to fighting them is vigilance and also talking about them. If you think something might be too good to be true or seems at all suspicious, check it out before you make any kind of payment.

“And if you do get hit by a scam or spot one, tell the authorities like your bank or the police, and also tell your friends and family. Scammers want us to stay quiet so they can con others. So don’t help them out! There is nothing to be ashamed of if you’ve been hit by a scam. They are the ones who should be ashamed, not you.”

Paul Davis, Director of Fraud Prevention, TSB, said: “Social media companies must urgently clean up their platforms to protect the countless innocent people who use their services every day. In the meantime, we are urging the public to remain
cautious to potential scam content – and to spread the word to help protect those around you.

“It’s high time that social media and telephone companies took financial liability for the rising levels of fraud taking place on their platforms.”