INTERNEWSTIMES.COM – A new law in the UK is putting banks and tech companies at odds over who should bear the responsibility for online fraud. Starting October 7th, UK banks will be required to compensate victims of online fraud up to £85,000. But the regulation has sparked a debate about whether banks are unfairly bearing the brunt of the cost for fraud committed on tech platforms.
Digital bank Revolut has accused Meta of failing to adequately address fraud on its platforms and called for tech companies to share the financial burden of compensation. The UK government is now considering proposals to make tech firms liable for fraud originating on their platforms.
Tech companies argue for cross-industry collaboration and data sharing to combat fraud, but banks and regulators believe they need to do more to actively combat fraud on their platforms. The debate highlights the increasing complexity of online fraud and the challenges of assigning liability in a multi-platform environment. (Red)
