Lloyds Bank has warned of the significant levels of fraudulent activity flowing through Meta platforms.
The reported infiltration of fraudulent activity taking place on Meta will raise alarms for iGaming stakeholders, with the social media network continuing to be cited as a key driver of traffic to the unlicensed gambling market.
However, data from the UK banking giant underpinned the scale of the task facing Meta, as it thwarts the illicit content proliferating its network.
Lloyds’ Head of Fraud outlined that two-thirds of fraud reports were targeted towards Meta customers. The fraud expanded into various sectors, from ticketing to clothes sales.
It also tapped into key events on the calendar when social engagement is highest, which will draw concern ahead of the World Cup this summer.
An aggressive external approach is being taken to the fraudulent activity, with Richardson Hartley Law and Humphries Kerstetter confirming they are forming a group legal claim for scam victims who lost money after seeing a fraudulent advert on Facebook or Instagram.
The group stated: “A large number of fraud victims have had their lives ruined after answering scam ads on Facebook and Instagram.
“We have decided that we could no longer sit back and do nothing for these people. Our solution is to try to get their lost funds back from Meta. We hope that by holding Meta to account, it will encourage the technology giant to stop showing these fake adverts.”
Speaking to the Sunday Times, a Meta spokesperson warned that scammers are determined criminals tapping into ‘increasingly sophisticated tactics to defraud people and evade detection on our platforms’.
They added: “We fight scams on and off our platforms because they’re not good for us or the people and businesses that rely on our services.
“We require advertisers promoting financial products in the UK to demonstrate appropriate FCA authorisation and we removed over 159 million scam ads last year alone — 92 per cent of which we took down before anyone reported them.
“Our ongoing collaboration with the banking sector and law enforcement has helped intercept fraudulent activity, protect people from scams, and hold scammers accountable, reflecting our commitment to addressing this widespread challenge.”
The warnings from Lloyds compile pressure on Meta, with messages rampant from the legal gambling sector over the challenges faced as a result of the platform.
Last week, the Dutch regulator Kansspelautoriteit (KSA) fired at Meta for a lack of action when it comes to unlicensed gambling advertising, as it described the platforms as being ‘awash’ with illegal gambling ads.
Director of Licensing and Supervision, Ella Seijsener, revealed that following a substantial number of reports sent to Meta, the KSA is now set to expand beyond fines, which have proved largely ineffective, to fight a black market that continues to surge while the country’s regulated market stagnates.
Speaking at the Gaming in Holland event from Amsterdam, she stated: “We intend to break down the infrastructure around illegal providers, make it impossible for them to operate in our Dutch markets.
“We are open about the fact that fines are almost impossible to collect and thus are almost never paid. What is more effective is our comprehensive approach by working with hosting providers, banks, payment service providers and marketing companies.”
Other gambling regulators have added pressure on Meta as well, with Tim Miller, Executive Director of the Gambling Commission, using a key speech to accuse the platform of ‘continuing to take money from criminals and scammers’.
Seijsener told attendees that the KSA was among several European regulators that travelled to Dublin to meet tech companies, including Meta, to discuss the issue and call for more urgent action.
Accusations against Meta are growing, and the pressure on governments to take regulatory action is intensifying. The dire data from Lloyds, coming fresh off the back of the warning from the KSA, may well trigger a degree of urgency from the social platform to eradicate bad actors.
