Meta is enhancing its Fraud Intelligence Reciprocal Exchange (FIRE) to directly share data with two UK banks in an effort to prevent scams originating from Facebook, Instagram, and WhatsApp.
NatWest and Metro Bank are the initial financial institutions on FIRE, but a statement from Meta noted that more banks are expected to join soon. The tech giant also noted that it had piloted FIRE with several UK banks and, in one instance, successfully identified 20,000 accounts linked to a concert ticket fraud ring targeting consumers in both the UK and the U.S.
“This is fascinating, and I’d be interested to see just how much financial institutions are willing to share,” said Tracy Kitten, Director of Fraud and Security at Javelin Strategy & Research. “It looks like the beta testing has been successful so far. We know that social media platforms are cybercriminals’ favorite launching pads for scams, so cutting criminals off at the social platform source makes sense.”
Crafting Attacks
Meta has faced criticism for the misuse of its platforms in the past. As consumers share more personal information on social media, criminals can exploit this data to create targeted fraud schemes.
One of the most common scams on platforms like Facebook is authorized push payment (APP) fraud, where cybercriminals impersonate individuals or companies to trick consumers into sending payments.
Protecting Privacy
Meta has instituted rules to ban APP fraud and other scams, but critics argue the company hasn’t done enough. In a recent statement, Meta’s leadership said that social media platforms and banks will have to work together and share relevant information to combat fraud, but that can present concerns for banks.
“The challenge for financial institutions is ensuring they don’t violate consumer privacy laws and share only what is necessary,” Kitten said. “They also run the risk of being vulnerable to shortcomings on Meta’s side, where disclosure to law enforcement is concerned, should an individual be tied to a specific account of interest. Still, it’s a promising first step and one that will be interesting to watch for similar actions in the U.S.”