P2P platforms back calls for government crackdown on financial fraud
Peer-to-peer lending platforms have joined calls for the government to crack down on financial fraud promoted by search engines and social media sites.
Earlier today, investment giant Aviva argued that financial scams promoted by paid-for adverts on these platforms should be included in the Online Safety Bill.
“More protection is needed against scams of course,” said Filip Karadaghi, managing director of LandlordInvest.
“Scams are very unfortunate things and it’s a huge tragedy when people lose their pensions and their savings for a rainy day.
“Anything and everything to prevent it is welcome.”
Lee Birkett, founder and chief executive of JustUs, agreed that search engines and social media platforms should have a greater responsibility when it comes to paid-for advertising.
Read more: Government responds to P2P fraud query
“It needs to be legislated, it’s quite a simple thing that should be done,” he said.
“The Financial Conduct Authority (FCA) is asking for it and in support of it being banned.
I can’t understand why it’s not to be honest. Apps are fully vetted as regulated businesses but that doesn’t seem to be the case on the search engines and I don’t know why.
Read more: City watchdog cracks down on online investment scams
“The government should include it in its bill. It’s down to the Treasury.
“They should be doing it and I don’t understand why not. It’s negligence in my mind.”
“There are lots of scams out there and lots of vulnerable people, so anything the FCA and the government can do to reduce their ability to prey on unsuspecting people, is a good thing,” said Rishi Zaveri, chief executive of Lendwise.
At the time, a spokesperson said that Google UK continues to consider that investment fraud caused by online advertising should be included in the scope of the Online Safety Bill.
