In an effort to shield users against fraud, Meta has revealed that it is collaborating on an information-sharing agreement with two of the top UK banks.

To assist it in identifying and eliminating fraudulent accounts and coordinated fraud operations, Meta said that it was extending its Fraud Intelligence Reciprocal Exchange (FIPE) to allow British banks to directly exchange data with the social media behemoth.

According to Meta, the technology has already been tried out with many UK lenders. For instance, with the help of information provided by British lenders NatWest and Metro Bank, Meta claims to have removed 20,000 accounts from con artists operating a concert ticket fraud network that preyed on consumers in the United States and the United Kingdom.

The only two British banks now involved in the fraud information-sharing agreement are NatWest and Metro Bank, but more are expected to sign on in the future, according to Meta.

Banks in the United Kingdom have long urged Meta to take further steps to prevent fraudsters from operating freely on its platforms, which include Facebook, Instagram, and WhatsApp.

Goldman Sachs-backed British digital bank Starling started to boycott Meta in 2022 and removed advertisements from its platforms due to worries that the business was not doing enough to stop fraudulent financial advertising.

Scammers have often used Meta's applications in an effort to defraud customers of their money through a range of dishonest techniques.

Authorised push payment fraud is a prevalent scam that customers come across on the company's platforms. This type of fraud involves impersonating persons or organisations offering services in an attempt to persuade victims to transfer money.

Meta already has regulations in place that forbid the advertising of financial fraud, including schemes that promise high rates of return and lending fraud. The company also forbids advertisements that assure a profit or make exaggerated claims about outcomes.

(Sources: cnbc.com)