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Meta is facing calls from U.K. banks and payment firms like Revolut to financially compensate people who fall for scams on their services.

Jaap Arriens | Nurphoto via Getty Images

Tensions are escalating between banking and payment companies and social media firms in the U.K. over who should be liable for compensating people if they fall victim to fraud schemes online.

Starting from Oct. 7, banks will be required to start compensating victims of so-called authorized push payment (APP) fraud a maximum £85,000 if those individuals affected were tricked or psychologically manipulated into handing over the cash.

APP fraud is a form of a scam where criminals attempt to convince people to send them money by impersonating individuals or businesses selling a service.

The £85,000 reimbursement sum could prove costly for large banks and payment firms. However, it’s actually lower than the mandatory £415,000 reimbursement amount that the U.K.’s Payment Systems Regulator (PSR) had previously proposed.

The PSR backed down from its bid for the lofty maximum compensation payout following industry backlash, with industry group the Payments Association in particular saying it would be far too costly a sum tor the financial services sector to bear.

But now that the mandatory fraud compensation is being rolled out in the U.K., questions are being asked about whether financial firms are facing the brunt of the cost for helping fraud victims.

On Thursday, London-based digital bank Revolut accused Meta of falling “woefully short of what’s required to tackle fraud globally.” The Facebook-owner announced a partnership earlier this week with U.K. lenders NatWest and Metro Bank, to share intelligence on fraud activity that takes place on its platforms.

Woody Malouf, Revolut’s head of financial crime, said that Meta and other social media platforms should help cover the cost of reimbursing victims of fraud and that, by sharing no responsibility in doing so, “they have no incentive to do anything about it.”

Revolut’s call for large tech platforms to financially compensate people who fall for scams on their websites and apps isn’t new.

Proposals to make tech firms liable

Tensions have been running high between banks and tech companies for some time. Online fraud has risen dramatically over the last several years due to an acceleration in the usage of digital platforms to pay others and buy products online.

In June, the Financial Times reported that the Labour Party had drafted proposals to force technology firms to reimburse victims of fraud that originates on their platforms. It is not clear whether the government still plans to require tech firms to pay compensation out to victims of APP fraud.

A government spokesperson was not immediately available for comment when contacted by CNBC.

Matt Akroyd, a commercial litigation lawyer at Stewarts, told CNBC that, after their victory on lowering the maximum reimbursement limit for APP fraud down to £85,000, banks “will receive another boost if their efforts to push the government to place some regulatory liability on tech companies is also successful.”

However, he added: “The question of what regulatory regime could cover those companies who do not play an active role in the PSR’s payment systems, and how, is complicated meaning that this issue is not likely to be resolved any time soon.”

More broadly, banks and regulators have long been pushing social media companies for more collaboration with retail banks in the U.K. to help combat the fast-growing and constantly evolving fraud threat. A key ask has been for the tech firms to share more detailed intelligence on how criminals are abusing their platforms.

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At a U.K. finance industry event focusing on economic fraud in March 2023, regulators and law enforcement stressed the need for social media companies to do more.

“We hear anecdotally today from all of the firms that we talk to, that a large proportion of this fraud originates from social media platforms,” Kate Fitzgerald, head of policy at the PSR, told attendees of the event.

She added that “absolute transparency” was needed on where the fraud was occurring so that regulators could know where to focus their efforts in the value chain.

Social media firms not doing enough to combat and remove attempts to defraud internet users was another complaint from regulatory authorities at the event.

“The bit that’s missing is the at-scale social media companies taking down suspect accounts that are involved in fraud,” Rob Jones, director general of the National Economic Crime Centre, a unit of the U.K. National Crime Agency, said at the event.

Jones added that it was tough to “break the inertia” at tech companies to “really get them to get after it.”

Tech firms push ‘cross-industry collaboration’

Meta has pushed back on suggestions that it should be held liable for paying out compensation to victims of APP fraud.

In written evidence to a parliamentary committee last year, the social media giant said that banks in the U.K. are “too focused on their efforts to transfer liability for fraud to other industries,” adding that this “creates a hostile environment which plays into the hands of fraudsters.”

The company said that it can use live intelligence from big banks through its Fraud Intelligence Reciprocal Exchange (FIRE) initiative to help stop fraud and evolve and improve its machine learning and AI detection systems. Meta called on the government to “encourage more cross-industry collaboration like this.”

In a statement to CNBC Thursday, the tech giant stressed that banks, including Revolut, should look to join forces with Meta on its FIRE framework to facilitate data exchanges between the firm and large lenders.

FIRE “is designed to enable banks to share information so we can work together to protect people using our respective services,” a spokesperson for Meta said last week. “Fraud is a multi-sector spanning issue that can only be addressed by working collaboratively.”

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Meta goes to arbitrator to prevent whistleblower from promoting tell-all book

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Meta goes to arbitrator to prevent whistleblower from promoting tell-all book

This photo illustration created Jan. 7, 2025, shows an image of Mark Zuckerberg, CEO of Meta, and an image of the Meta logo.

Drew Angerer | Afp | Getty Images

Meta is seeking to stop the promotion of a new memoir by a former staffer that paints the social media company in an unflattering light, including allegations of sexual harassment by the company’s policy chief. 

An emergency arbitrator ruled Thursday that Sarah Wynn-Williams is prohibited from promoting “Careless People,” her book that was released Tuesday by Flatiron Books, an imprint of publisher Macmillan Books.

The memoir chronicles Wynn-Williams’ tenure at Facebook from 2011 through 2017. During that time, she became a high-level employee who interacted with CEO Mark Zuckerberg, then-COO Sheryl Sandberg and Joel Kaplan, the company’s current policy chief. In the book, Wynn-Williams alleges that Kaplan made a number of inappropriate comments to her, which she then reported to the company as sexual harassment.

“This is a mix of out-of-date and previously reported claims about the company and false accusations about our executives,” a Meta spokesperson previously said about both her book and complaint.

Wynn-Williams also details in her book the company’s various attempts to enter the Chinese market, including building tools that would censor content to appease the Chinese Communist Party. Wynn-Williams addressed some of these China-specific claims in a whistleblower complaint that she filed in April with the Securities and Exchange Commission, NBC News reported.

The emergency arbitrator ruled in favor of Meta after watching a podcast appearance of Wynn-Williams in which she discussed her memoir and her allegations that Meta was attempting to “shut this book down.”

“The Emergency Arbitrator finds that, after reviewing the briefs and hearing oral argument, (Meta) has established a likelihood of success on the merits of its contractual non-disparagement claim against Respondent Wynn-Williams, and that immediate and irreparable loss will result in the absence of emergency relief,” the filing said.

Additionally, the arbitrator ruled that so much as Wynn-Williams can control, she is prohibited from further publishing or distributing the book and from further disparaging Meta and its officers or repeating previous disparaging remarks. The arbitrator also ruled that Wynn-Williams is to retract her previous disparaging remarks.

The company has previously dismissed Wynn-Williams’ claims as “out-of-date” and said that she was fired for “poor performance and toxic behavior.”

Meta spokesperson Andy Stone shared the emergency arbitrator’s ruling in a post on Threads, saying that it “affirms that Sarah Wynn Williams’ false and defamatory book should never have been published.”

“This urgent legal action was made necessary by Williams, who more than eight years after being terminated by the company, deliberately concealed the existence of her book project and avoided the industry’s standard fact-checking process in order to rush it to shelves after waiting for eight years,” Stone said.

Meta alleged that Wynn-Williams violated the non-disparagement terms of her September 2017 severance agreement, resulting in the company filing an emergency motion on Friday. The emergency arbitrator then conducted a telephone hearing involving legal representatives of Meta and Macmillan Books, but not Wynn-Williams who did not appear though she was given notice, the filing said.

Wynn-Williams, Flatiron Books and Macmillan Books did not respond to requests for comment.

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Intel appoints Lip-Bu Tan as new CEO, stock jumps 12%

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Intel appoints Lip-Bu Tan as new CEO, stock jumps 12%

Lip-Bu Tan appointed chief executive officer of Intel Corporation

Courtesy: Intel

Intel said on Wednesday that it had appointed Lip-Bu Tan as its new CEO, as the chipmaker attempts to recover from a tumultuous four-year run under Pat Gelsinger.

Tan was previously CEO of Cadence Design Systems, which makes software used by all the major chip designers, including Intel. He was an Intel board member but departed last year, citing other commitments.

Tan replaces interim co-CEOs David Zinsner and MJ Holthaus, who took over in December when former Intel CEO Patrick Gelsinger was ousted. Tan is also rejoining Intel’s board.

The appointment closes a chaotic chapter in Intel’s history, as investors pressured the semiconductor company to cut costs and spin off businesses due to declining sales and an inability to crack the booming artificial intelligence market.

Intel shares rose over 12% in extended trading on Wednesday.

Tan becomes the fourth permanent CEO at Intel in seven years. Following Brian Krzanich’s resignation in 2018, after the revelations of an inappropriate relationship with an employee, Bob Swan took the helm in Jan. 2019. He departed two years later after Intel suffered numerous blows from competitors and chip delays. Swan was succeeded by Gelsinger in 2021.

Gelsinger took over with a bold plan to transform Intel’s business to manufacture chips for other companies in addition to its own, becoming a foundry. But Intel’s overall products revenue continued to decline, and investors fretted over the significant capital expenditures needed for such massive chip production, including constructing a $20 billion dollar factory complex in Ohio.

Last fall, after a disappointing earnings report, Intel appeared to be for sale, and reportedly drew interest from rival companies including Qualcomm. Analysts assessed the possibility of Intel spinning off its foundry division or selling its products division — including server and PC chips — to a rival.

In AI, Intel has gotten trounced by Nvidia, whose graphics processing units (GPUs) have become the chip of choice for developers over the past few years.

In January, Intel issued a weak forecast even as it beat on earnings and revenue. The company pointed to seasonality, economic conditions and competition, and said clients are digesting inventory. The prospect of tariffs was adding to the uncertainty, Zinsner said.

Intel said that Zinsner will return to his previous role of CFO. Holthaus will remain in charge of Intel Products.

Intel was removed from the Dow Jones Industrial Average in November and was replaced by Nvidia, reflecting the dramatic change of fortune in the semiconductor industry. Intel shares lost 60% of their value last year, while Nvidia’s stock price soared 171%. At Wednesday’s close, Intel’s market cap was $89.5 billion, less than one-thirtieth of Nvidia’s valuation.

WATCH: Intel appoints Lip-Bu Tan as CEO

Intel appoints Lip-Bu Tan as CEO

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Shares of iRobot tank 30% after Roomba maker raises doubt about its survival

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Shares of iRobot tank 30% after Roomba maker raises doubt about its survival

Roomba vacuums by iRobot are displayed at Best Buy store on January 19, 2024 in San Rafael, California. 

Justin Sullivan | Getty Images

Shares of iRobot plunged more than 30% on Wednesday after it said there is “substantial doubt” about its ability to stay in business.

The Roomba maker’s financial outlook has darkened since Amazon abandoned its planned $1.7 billion acquisition of the company in January 2024, citing regulatory scrutiny. Since then, iRobot has struggled to generate cash and pay off debts.

Massachusetts-based iRobot has been restructuring since the Amazon deal plunged into uncertainty. The company has laid off 51% of its workforce since the end of 2023, and iRobot has looked to reignite revenue growth by overhauling its product lineup. The company on Tuesday launched eight new Roombas in the hopes of “better positioning iRobot as the leader in the category that we created,” CEO Gary Cohen said in a statement.

“There can be no assurance that the new product launches will be successful,” iRobot said in its Wednesday earnings statement, citing limited consumer demand, tariff uncertainty and heightened competition.

“Given these uncertainties and the implication they may have on the company’s financials, there is substantial doubt about the company’s ability to continue as a going concern for a period of at least 12 months,” iRobot said in its earnings report.

The company’s fourth-quarter revenue sagged 44% year over year to $172 million, missing estimates of $180.8 million, according to FactSet. The Roomba maker posted a net loss of $77.1 million, or $2.52 per share. Excluding a one-time “manufacturing transition charge,” iRobot had a loss of $2.06 a share, exceeding the $1.73 per share projected by analysts surveyed by FactSet.

In July 2023, iRobot took a $200 million loan from the Carlyle Group to fund the company’s operations as a stopgap until the Amazon deal closed. The company amended the loan for a temporary waiver on certain financial obligations, which requires iRobot to pay a fee of $3.6 million.

As part of Wednesday’s report, iRobot said its board has initiated a strategic review of the business and is considering alternatives that could include refinancing its debt and exploring a potential sale. The board hasn’t set a deadline for when its review will conclude, the company said.

Shortly after the Amazon deal fell apart, Amazon CEO Andy Jassy criticized regulators’ approach to its iRobot acquisition. European Union regulators threatened to block the deal, and the Federal Trade Commission in the U.S. was reportedly expected to challenge the acquisition in court.

The proposed merger, which was announced in late 2022, would have allowed iRobot to scale and better compete with its rivals, Jassy said. Several of the fastest-growing robotic vacuum businesses are based in China, such as Anker, Ecovacs and Roborock, all of which have eaten into iRobot’s share of the market.

“We abdicate the acquisition, iRobot lays off a third of its staff, the stock price completely tanks, and now, there’s a real question of whether they’re going to be a going concern,” Jassy told CNBC’s Andrew Ross Sorkin in an interview last April.

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