City Lobby Urges Scams Legislation for Next UK Gov
As the UK gears up for its next government, city lobby groups are amplifying their calls for robust scam legislation to hold big tech and social media giants accountable. UK Finance, representing a consortium of financial institutions, is spearheading this push, demanding that companies like Facebook and Google contribute up to £40 million annually to reimburse customers affected by fraud on their platforms.
Demands for Legislative Action:
UK Finance's "financial services manifesto" outlines a clear demand for legislative intervention. Despite a prior online fraud charter, which relied on voluntary agreements from tech firms to combat fraud, UK Finance insists that solidifying these measures into law is imperative. They urge the next government to enact a fraud and scams bill to ensure that online platforms bear the burden of tackling fraudsters exploiting their systems.
Financial Impact and Responsibility:
Highlighting the disproportionate burden currently shouldered by banks and financial firms, UK Finance emphasizes the need for a fair contribution from tech giants. With banks legally obligated to reimburse customers affected by fraud, the staggering £1 billion reimbursed in 2023 underscores the urgency for an equitable distribution of responsibility. The proposal suggests expanding the economic crime levy to incorporate online platforms, potentially generating over £40 million annually to enhance fraud prevention measures.
Calls for Government Action:
In addition to industry demands, UK Finance advocates for a governmental "champion for competitiveness" to address regulatory burdens. The manifesto urges political parties, including Labour and the Conservatives, to commit to legislation compelling tech firms to fund efforts combating economic crime and reimbursing fraud victims.
Industry Collaboration for Growth:
The City UK, representing a broader spectrum of financial and professional services, echoes the need for stability and partnership with the incoming government. Emphasizing the importance of industry-government collaboration, TheCityUK stresses the necessity of addressing barriers to growth and fostering a conducive environment post-Brexit.
