Tensions rise between banks and tech companies over online fraud liability in the UK
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.
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.”
Beta Technologies shares surged more than 9% after air taxi maker Eve Air Mobility announced an up to $1 billion deal to buy motors from the Vermont-based company.
Eve, which was started by Brazilian airplane maker Embraer and is now under Eve Holding, said the manufacturing deal could equal as much as $1 billion over 10 years. The Florida-based company said it has a backlog of 2,800 vehicles.
Shares of Eve Holding gained 14%.
Eve CEO Johann Bordais called the deal a “pivotal milestone” in the advancement of the company’s electric vertical takeoff and landing, or eVTOL, technology.
“Their electric motor technology will play a critical role in powering our aircraft during cruise, supporting the maturity of our propulsion architecture as we progress toward entry into service,” he said in a release.
Mateusz Slodkowski | SOPA Images | Lightrocket | Getty Images
Amazon’s cloud unit on Tuesday announced AI-enabled software designed to help clients better understand and recover from outages.
DevOps Agent, as the artificial intelligence tool from Amazon Web Services is called, predicts the cause of technical hiccups using input from third-party tools such as Datadog and Dynatrace. AWS said customers can sign up to use the tool Tuesday in a preview, before Amazon starts charging for the service.
The AI outage tool from AWS is intended to help companies more quickly figure out what caused an outage and implement fixes, Swami Sivasubramanian, vice president of agentic AI at AWS, told CNBC. It’s what site reliability engineers, or SREs, do at many companies that provide online services.
SREs try to prevent downtime and jump into action during live incidents. Startups such as Resolve and Traversal have started marketing AI assistants for these experts. Microsoft’s Azure cloud group introduced an SRE Agent in May.
Rather than waiting for on-call staff members to figure out what happened, the AWS DevOps Agent automatically assigns work to agents that look into different hypotheses, Sivasubramanian said.
“By the time the on-call ops team member dials in, they have an incident report with preliminary investigation of what could be the likely outcome, and then suggest what could be the remediation as well,” Sivasubramanian told CNBC ahead of AWS’ Reinvent conference in Las Vegas this week.
Commonwealth Bank of Australia has tested the AWS DevOps Agent. In under 15 minutes, the software found the root cause of an issue that would have taken a veteran engineer hours, AWS said in a statement.
The tool relies on Amazon’s in-house AI models and those from other providers, a spokesperson said.
AWS has been selling software in addition to raw infrastructure for many years. Amazon was early to start renting out server space and storage to developers since the mid-2000s, and technology companies such as Google, Microsoft and Oracle have followed.
Since the launch of ChatGPT in 2022, these cloud infrastructure providers have been trying to demonstrate how generative AI models, which are often training in large cloud computing data centers, can speed up work for software developers.
Over the summer, Amazon announced Kiro, a so-called vibe coding tool that produces and modifies source code based on user text prompts. In November, Google debuted similar software for individual software developers called Antigravity, and Microsoft sells subscriptions to GitHub Copilot.
WATCH: Amazon rolls out AI-powered tools to help big AWS customers update old software
Technology
Amazon to let cloud clients customize AI models midway through training for $100,000 a year
Attendees pass an Amazon Web Services logo during AWS re:Invent 2024, a conference hosted by Amazon Web Services, at The Venetian hotel in Las Vegas on Dec. 3, 2024.
Noah Berger | Getty Images
Amazon has found a way to let cloud clients extensively customize generative AI models. The catch is that the system costs $100,000 per year.
The Nova Forge offering from Amazon Web Services gives organizations access to Amazon’s AI models in various stages of training so they can incorporate their own data earlier in the process.
Already, companies can fine-tune large language models after they’ve been trained. The results with Nova Forge will lean more heavily on the data that customers supply. Nova Forge customers will also have the option to refine open-weight models, but training data and computing infrastructure are not included.
Organizations that assemble their own models might end up spending hundreds of millions or billions of dollars, which means using Nova Forge is more affordable, Amazon said.
AWS released its own models under the Nova brand in 2024, but they aren’t the first choice for most software developers. A July survey from Menlo Ventures said that by the middle of this year, Amazon-backed Anthropic controlled 32% of the market for enterprise LLMs, followed by OpenAI with 25%, Google with 20% and Meta with 9% — Amazon Nova had a less than 5% share, a Menlo spokesperson said.
The Nova models are available through AWS’ Bedrock service for running models on Amazon cloud infrastructure, as are Anthropic’s Claude 4.5 models.
“We are a frontier lab that has focused on customers,” Rohit Prasad, Amazon head scientist for artificial general intelligence, told CNBC in an interview. “Our customers wanted it. We have invented on their behalf to make this happen.”
Nova Forge is also in use by internal Amazon customers, including teams that work on the company’s stores and the Alexa AI assistant, Prasad said.
Reddit needed an AI model for moderating content that would be sophisticated about the many subjects people discuss on the social network. Engineers found that a Nova model enhanced with Reddit data through Forge performed better than commercially available large-scale models, Prasad said. Booking.com, Nimbus Therapeutics, the Nomura Research Institute and Sony are also building models with Forge, Amazon said.
Organizations can request that Amazon engineers help them build their Forge models, but that assistance is not included in the new service’s $100,000 annual fee.
AWS is also introducing new models for developers at its Reinvent conference in Las Vegas this week.
Nova 2 Pro is a reasoning model whose tests show it performs at least as well as Anthropic’s Claude Sonnet 4.5, OpenAI’s GPT-5 and GPT-5.1, and Google’s Gemini 3.0 Pro Preview, Amazon said. Reasoning involves running a series of computations that might take extra time in response to requests to produce better answers. Nova 2 Pro will be available in early access to AWS customers with Forge subscriptions, Prasad said. That means Forge customers and Amazon engineers will be able to try Nova 2 Pro at the same time.
Nova 2 Omni is another reasoning model that can process incoming images, speech, text and videos, and it generates images and text. It’s the first reasoning model with that range of capability, Amazon said. Amazon hopes that, by delivering a multifaceted model, it can lower the cost and complexity of incorporating AI models into applications.
Tens of thousands of organizations are using Nova models each week, Prasad said. AWS has said it has millions of customers. Nova is the second-most popular family of models in Bedrock, Prasad said. The top group of models are from Anthropic.
WATCH: Amazon set to kick off AI conference next week: Maxim’s Tom Forte on what to expect
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment3 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024