Amazon, Google and Microsoft sign “world first” agreement with UK government to tackle online fraud

The UK government and some of the world’s biggest technology companies have agreed a series of pledges to tackle online fraud. Announced last week (30 November), the Online Fraud Charter establishes “voluntary” steps for technology firms to better police fraud and scam content on their platforms. Actions include verifying new advertisers, increased levels of verification on peer-to-peer marketplaces and promptly removing any fraudulent content.
Leading tech companies Amazon, eBay, Facebook, Google, Instagram, LinkedIn, Match Group, Microsoft, Snapchat, TikTok, X (Twitter) and YouTube have all signed up to the new agreement.

In addition to clamping down on scam posts offering goods and services, each signatory has pledged to work closely with law enforcement in their efforts to target fraudsters. The tech firms will also commit to running direct routes for law enforcement to report suspicious activity taking place on the services, making it easier to quickly identify and remove fraudulent content and protect users. All signatories have pledged to implement the measures that apply to their companies within six months, according to the government’s announcement.

Fraud accounts for around 40 percent of all crime in England and Wales, with data from UK Finance showing almost 80 percent of all authorized pushed payment fraud originates from social media or fake websites.

Tech companies will adhere to specific anti-fraud measures

The specific measures tech companies will adhere to are:

• Deploying measures to detect and block fraudulent material.
• Having a simple and quick route to report fraudulent material.
• Taking action against fraudulent content and users straight away.
• Deploying measures to protect people from fraudulent adverts.
• Having dedicated liaisons who will respond to law enforcement requests.
• Engaging with initiatives to quickly share information about frauds.
• Providing information about fraud risks and what is being done to address them.
• Delivering simple messaging to support the public to recognize and avoid online fraud.
• Contributing to horizon scanning exercises to stay ahead of the threat.

Agreement signifies intention to tackle sophisticated and organized cyber criminals

“Fraud is now the most common crime in the UK, with online scammers targeting the most vulnerable in society,” said UK prime minister Rishi Sunak. “By joining forces with these tech giants we will continue to crack down on fraudsters, making sure they have nowhere to hide online.”

The Online Fraud Charter is a big step forward in the UK’s efforts to tackle sophisticated, adaptable and highly organized criminals, added James Cleverly, home secretary. “An agreement of this kind has never been done on this scale before and I am exceptionally pleased to see tech firms working with us to turn the tide against fraudsters. Our work does not end here – I will continue to ensure we collaborate across government, and with law enforcement and the private sector, to ensure everyone in the UK is better protected from fraud.”

Martin Lewis, founder of MoneySavingExpert.com, said: “I’ve long called for regulation and law changes to make these big tech firms step up to the plate and deny these scammers the oxygen of publicity. So I am pleased at the signing of this voluntary agreement, which is adopting many of the scam ad protection measures we’ve been calling for – such as two-click reporting, and advertiser and site destination verification.”

Online Fraud Charter to benefit cyber security ecosystem

Security experts think the new charter will have beneficial impacts for cyber security, if the anti-fraud measures it sets out are adopted and implemented.

“Every fraud starts with the fraudsters identifying a victim, so doing what we can to stem the pipelines of a potential victim to fraudsters addresses a root cause issue,” Kevin Clark, director, compliance and risk investigations and analysis at payments firm Convera, tells Cyber Security Hub. “It will be interesting to see what comes from the intelligence-sharing and transparency aspects of the pledge. Hopefully, this will allow for the sharing of best practices and enable firms to prevent bad actors from jumping from platform to platform.” Unfortunately, the commitments and actions are currently only voluntary, he adds. “Similar controls are currently required by law in the financial industry today and we still see firms struggle to adopt, even when there is a risk of heavy financial penalties.”

From a cyber security standpoint, the most interesting point for Javvad Malik, lead security awareness advocate at KnowBe4, is the Charter’s potential to create an ecosystem that’s hostile to fraudsters. “Frauds are not mere inconveniences; they can be life-altering, which amplifies the significance of this Charter. We finally see heavy hitters acknowledging that they bear responsibility not just for providing services, but for the safety of those using them.”

The signatories should be recognized for their willingness to pledge action, but we should hold the applause until we see the impact, he adds. “It’s one thing to sign a charter; it’s another to enforce it thoroughly and effectively.”

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