The growth of social media and its impact on fraud

Article

The pandemic of 2020 saw a surge in social media use. With it came the rise of online fraud, and the blurred responsibility between social media platforms, advertisers, and victims, prompting questions on how to protect users and mitigate cybercrime.

02/10/2023

Ionela Emmett, Senior Manager, Financial Crime Controls, Risks and Policy & Advisory, ICBC Standard Bank

The growth of social media and its impact on fraud

The growth in the the volume of social media adverts consumers encounter, exponentially increases opportunities for fraudsters
The issue of identifying who has responsibility for mitigating online fraud is contentious, slowing the implementation of protection policies and protocols
Better enforcement of GDPR legislation is necessary - but on its own will not solve the overarching problem of online fraud
How a multifaceted approach, including increased user awareness, stricter vetting processes, and governmental intervention can help to manage fraud risk
Challenges around the implementation of comprehensive controls on social media advertising due to the associated costs and logistical complexities create obstacles in agreeing solutions.
Proactive measures could help prevent and mitigate fraud at its early stages.
Why online fraud poses a threat to all internet users, highlighting the need for collective efforts to combat online fraud effectively.