The Government is taking measures to force tech companies to crack down on online fraud. Through the introduction of a new charter, the Home Office seeks to join forces with 11 of the world’s biggest tech firms.
Online Safety
The government highlighted that fraud accounts for about 40% of all crime in England and Wales, with data from UK Finance showing that almost 80% of authorised pushed payment fraud originating from social media or fake websites. The news comes as cyber security experts warn that the rise of generativeย AIย tools such asย ChatGPTย is helping cybercriminals create more convincing and sophisticated scams.
As ChatGPT marks the first anniversary of its launch to the public, a number of experts have said the technology is being leveraged by bad actors online. They warn that generative AI tools for text and image creation are making it easier for criminals to create convincing scams, but also that AI is being used to help boost cyber defences.
At the UK’s AI Safety Summit earlier this month, the threat of more sophisticated cyber attacks powered by AI was highlighted as a key risk going forward, with world leaders agreeing to work together on the issue. The UK’s National Cyber Security Centre (NCSC) has also highlighted the use of AI to create and spread disinformation as a key threat in years to come, especially around elections.
The Online Fraud Charter
Signing the ‘Online Fraud Charter’, symbolises a pedge to take action to protect their users against online scams and to block fake adds and fraudulent content affecting their users. The tech companies involved in developing the charter are Amazon, eBay, Facebook, Google, Instagram, LinkedIn, Match Group, Microsoft, Snapchat, TikTok and YouTube. The Home Office says it is the first agreement of its kind in the world.
Under the new pledge, tech companies will be required to take measures which include verifying new advertisers and promptly removing any fraudulent content. There will also be increased levels of verification on online marketplaces under the charter, and people using online dating services will have the opportunity to prove they are who they say they are. There will also be increased levels of verification on online marketplaces under the charter, and people using online dating services will have the opportunity to prove they are who they say they are.
However, the charter is voluntary so there are no penalties if companies are found to not be doing enough in line with the terms.
The charter will be supported by an action plan, agreed by the Online Advertising Taskforce, to crack down on illegal adverts and ads for age-restricted products, such as alcohol or gambling, being seen by children. The action plan will be published today and will set out the steps industry and Government are taking to tackle scams and increase protections for children. Home Secretary James Cleverly will host representatives from several leading tech companies to sign the pledge to tackle internet fraud.
Responses
The Prime Minister said: ‘Fraud is now the most common crime in the UK, with online scammers targeting the most vulnerable in society. By joining forces with these tech giants we will continue to crack down on fraudsters, making sure they have nowhere to hide online.’
Paul Davis, director of fraud prevention at TSB, said: ‘We’ve campaigned for years for tech companies to do far more to prevent the fraud that’s become rife on social media platforms. Now we have the Charter, it’s down to all signatories to match their commitment with meaningful concerted action – putting the right protections in place to reduce fraud and take responsibility to protect millions of consumers on their platforms.’
James Cleverly, who will announce the charter at Lancaster House, said: “The Online Fraud Charter is a big step forward in our efforts to protect the public from sophisticated, adaptable and highly organised criminals.
Final thought
The Online Fraud Charter demonstrates a significant move by the Government and firms to improve safety online. The charter represents a pledge to implement the measures which apply to their services within six months and will be backed by a crackdown on illegal adverts and promotions for age-restricted products such as alcohol or gambling which target children. However, the charter will only act as guidance so will not legally enforce firms to follow the measures which is casting some doubt over its effectiveness.