Fraudsters Are Rife With Account

Drains, Angry Banks Are

Ordered To Compensate Them

Jakarta, CNBC Indonesia –Fraud in online services often occurs. If there are already victims, who should be responsible for paying compensation?

This is currently a hot topic of debate in the UK. As of October 7, 2024 local time, banks are required to provide compensation to those who are victims of authorized push payment (APP) fraud.

For information, APP is a fraud scheme when criminals convince potential victims to send money. The perpetrators will disguise themselves as individuals or businesses selling services to carry out their actions.

Banks must pay a maximum of 85 thousand pounds (Rp. 1.7 billion) to victims. However, this has sparked anger from the bank.

This amount is considered quite high for banks and payment companies, although it is still lower than the UK Payment Systems Regulator (PSR) regulation of 415 thousand pounds or Rp. 8.5 billion.

It doesn’t stop there, social media is also involved in this problem. Digital bank Revolut accused Meta, the parent company of Facebook and Instagram, which it felt had failed to tackle fraud on its platform globally.

Revolut’s Head of Financial Crime, Woody Malouf also suggested that social media and other social media platforms should also pay compensation, quoted from CNBC International, Tuesday (8/10/2024).

The local Labor Party did the same thing last June. They drafted a proposal for technology companies to pay compensation for fraud that occurred on their services.

The push for compensation payments was also carried out by the Payment Association’s director of policy and government relations, Riccardo Torder. He explained that social media must take responsibility because of the large number of frauds.

SOURCE : CNBC INDONESIA