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- Two-thirds of the £250 million lost to APP fraud in early 2025 originated on digital platforms like Facebook and Instagram.
- The Payments Association is calling for a shared responsibility regulatory framework to tackle the issue.
- The proposed framework would require social media companies to take more responsibility for preventing and detecting fraud on their platforms.
£250 million lost to APP fraud in early 2025. That’s real money from real people. And two-thirds of it vanished through Meta‘s platforms—Facebook and Instagram. The Payments Association is now demanding the government act.
Understanding the Crisis
APP fraud has become a perfect storm. Scammers are exploiting weaknesses on social media, targeting vulnerable users with convincing investment schemes and romance scams. Social media companies have been criticized for looking the other way while criminals rake in hundreds of millions. The proposed shared responsibility regulatory framework would flip the script: it would hold Meta and others accountable by requiring them to actively detect and prevent fraud rather than simply removing content after victims complain.
What would this actually mean? More robust verification processes. Better user education. Real collaboration with law enforcement. Clear accountability when fraud slips through the cracks. Right now, the lines of responsibility are blurry—platforms claim they’re not banks, banks say they can’t police social networks. This framework would force clarity.
Implications and Next Steps
If adopted, the framework could reshape how social media platforms operate. It’s not without friction though—tighter fraud checks might slow down user experience, or create barriers for legitimate transactions. That balance matters.
The Middle East and North Africa region is watching closely. APP fraud isn’t a UK-only problem; scammers operate across borders. The Central Bank of the UAE has been proactive in tackling fraud, and regulators here could draw lessons from what the UK proposes. If this framework works, expect MENA regulators to push for similar measures from platforms operating in the region.
Platforms can no longer hide behind the “we’re just a network” defense. The proposed shared responsibility framework puts real teeth into fraud prevention, but only if Meta and others actually invest in detection rather than damage control. For fintech operators and investors in the MENA region, this is a signal: expect similar accountability measures to land here. The key tension remains unresolved—stronger fraud prevention shouldn’t come at the cost of locking out legitimate users. Success depends on getting that balance right.
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