Bank of England Chief Calls for Social Media Accountability on Online Fraud

Bank of England Governor Andrew Bailey has called on social media companies to increase their efforts in combating online scams, criticizing the "downright criminal" activity facilitated on some platforms.

Bailey expressed frustration that social media giants are not held to account for the fraudulent content hosted on their sites, contrasting this with the legal responsibility traditional newspapers bear for their publications. "We've moved into quite an extreme position of, well, these platforms are open to everybody and there's no real liability to the provision of the platform to what's on it," he stated at an International Monetary Fund (IMF) event in Bangkok.

The governor's remarks come amid growing concerns about how fraudsters exploit social media to target victims. Bailey himself has personal experience with the issue, having been targeted by deepfake images posted on X, formerly Twitter, that falsely depicted him in a confrontation with Reform UK leader Nigel Farage. The Bank had previously noted difficulty in removing these misleading images, which were reportedly designed to lure the public into investment schemes through fake news articles.

Bailey emphasized the need for a shared responsibility approach, stating, "We must get the social media companies involved because a lot of this fraud is transmitted through those channels." However, he cautioned against a "compensation culture," urging companies to prioritize developing systems and technology to fight fraud.

IMF Managing Director Kristalina Georgieva echoed these concerns, warning that cyber fraud poses a significant risk to trust in financial systems. "Trust is the foundation of every financial system," she said, adding that as digital finance grows, international cooperation is essential to combat cyber-enabled fraud and maintain confidence. Georgieva noted that while complete prevention may be impossible, effective mitigation strategies and response systems are crucial.

Financial institutions have long advocated for tech platforms to share the burden of fraud prevention. Figures from the trade body UK Finance reveal that criminals stole £1.28 billion through payment fraud in 2025, a 4% increase from the previous year. The report indicated that 66% of these frauds originated online, highlighting the scale of the problem and the need for platforms to contribute financially, share expertise, and provide intelligence to combat these crimes.