Meta, the owner of Facebook, enters into a data-sharing agreement with UK banks to combat fraud.

• NatWest and Metro Bank have partnered with Meta to prevent customers from falling victim to fraud through an information-sharing agreement.
• Meta is expanding its Fraud Intelligence Reciprocal Exchange (FIPE) to allow U.K. banks to share information on scams with Meta directly.
• Banks in the U.K. have frequently called on Meta to take stronger measures against scammers using its platforms, such as Facebook, Instagram, and WhatsApp.

Facebook's parent company announced on Wednesday that it is collaborating with two prominent UK banks on a data-sharing agreement aimed at safeguarding users from fraud.

Meta is expanding its Fraud Intelligence Reciprocal Exchange (FIPE) to allow U.K. banks to directly share information with the social media giant, in an effort to detect and remove fraudulent accounts and schemes.

Meta has tested its technology with multiple lenders in the U.K., including NatWest and Metro Bank, and was able to take down 20,000 accounts from scammers engaged in a concert ticket scam network targeting people in the U.K. and U.S.

In the U.K., only NatWest and Metro Bank are currently part of the fraud information-sharing agreement, but more banks are expected to join in the future, Meta stated.

Nathaniel Gleicher, Meta's global head of counter-fraud, stated on Wednesday that this work has already resulted in action against thousands of scammer-run accounts, highlighting the significance of banks and platforms collaborating to address this pressing societal issue.

To defeat these criminals, we must collaborate and exchange pertinent information about scams. Financial institutions can provide us with exclusive data that we can utilize to enhance our systems and combat scams on a global scale, as Gleicher stated.

Banks in the U.K. have frequently called on Meta to take stronger measures against scammers using its platforms, such as Facebook, Instagram, and WhatsApp.

In 2022, Starling, a British digital bank backed by Goldman Sachs, stopped advertising on Meta due to concerns about the platform's inadequate handling of fraudulent financial ads.

Scammers have often taken advantage of Meta's apps to deceive users and steal their money through fraudulent schemes.

Criminals often use authorized push payment fraud to trick people into sending them money by posing as individuals or businesses offering a service on the company's platforms.

The company has rules against advertising financial fraud, including loan scams and schemes that guarantee high returns. Additionally, the company prohibits ads that make unrealistic promises.