Banks Can't Fight Scams Alone

When it comes to online fraud, banks are getting tired of playing defense by themselves. Anthony Miller, CEO of Australia's Westpac Banking Corp, made that clear at a recent Australian British Chamber of Commerce meeting in Sydney, calling on social media companies like Meta Platforms (META) to take meaningful action against the scam epidemic threatening consumers.

Miller's message was blunt: Westpac can't tackle this problem solo. The bank has poured more than $333 million into scam and fraud prevention over the past five years, building out advanced detection systems and customer protection tools. Yet despite this investment, Miller stressed that other players in the digital ecosystem, particularly social media platforms, need to step up their game to better protect Australians.

This isn't the first time Westpac has sounded the alarm. Back in November, the bank's fraud chief Ben Young highlighted a troubling trend called "muling," where criminals use online groups to openly trade bank accounts. Scammers are reportedly using Facebook Marketplace to purchase Australian bank accounts from people duped through romance scams or from individuals willing to sell dormant accounts. These acquired accounts help criminals hide their identities and move money without detection.

The $16 Billion Question

The scope of the problem became clearer when leaked internal documents last month showed that Meta had projected approximately $16 billion in revenue from scam advertisements and banned goods in 2024. That's nearly 10% of the company's total revenue. Even more alarming, the documents suggested Meta was displaying an estimated 15 billion "higher risk" scam ads every single day.

Other companies have noticed the issue too. In October 2024, UK fintech firm Revolut called on Meta to share the costs of reimbursing fraud victims. Their argument? Tech platforms currently bear zero responsibility for reimbursing victims, which means they have little financial incentive to seriously address the problem.

Australia Takes Drastic Action

Meanwhile, Australia has taken an unprecedented step in regulating social media. The country became the first in the world to ban children under 16 from major social media platforms. Apps like TikTok, YouTube (owned by Alphabet Inc. (GOOGL) (GOOG)), Meta's Instagram and Facebook, and Elon Musk's X must now block millions of young users or face fines reaching AUD 49.5 million (roughly $33 million). The law went into effect Wednesday.

The timing isn't coincidental. As concerns mount about online safety, fraud prevention, and the impact of social media on young people, regulators are clearly willing to take bold action. Whether these measures will force tech giants to fundamentally change how they police their platforms remains to be seen, but the pressure is certainly building.