Big Banks vs. Big Tech: Who Is Liable For Online Fraud?
The concept of digitalising everything has been the driving force behind getting things done for the present generation.
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Updated November 2026. This was first published on 28 October 2022. The idea is the same. Any number below is what the original piece said then. It is not a new count.
Key takeaways
- The concept of digitalising everything has been the driving force behind getting things done for the present generation.
- A few years back ordering any product online seemed to be a huge risk and people dreaded clicking even on COD purchases.
- The latest advancements in digital banking and security have enabled the masses to trust the online vendors and render them their crucial personal information in the blink of an eye.
Introduction #
The concept of digitalising everything has been the driving force behind getting things done for the present generation. A few years back ordering any product online seemed to be a huge risk and people dreaded clicking even on COD purchases. The latest advancements in digital banking and security have enabled the masses to trust the online vendors and render them their crucial personal information in the blink of an eye.
The digital financial transactions have made it an easy game for the trade businesses and the consumers enabling buying and selling in one-time clicks but the fraudsters, too, have found a way to expose the weak bits.
Some Stats #
The cases of online fraud and cybercrimes are booming with every passing year as people are introduced to more facets of the digital shopping and digital banking experiences. Here is a quick look at the stats of leading countries depicting the alarming figures of online frauds and financial crimes.
Australia saw its users losing nearly about 2 billion $ in online scams.
UK victims are estimated to have lost over 1.3 billion Euros in 202 with 40% spike in push payment scams.
Nigeria was among the top victim country in the previous year costing its people around NGN 5.2 billion with shocking 93% success rate.
With this data in hand, the big question is who exactly is responsible for the online frauds? Is it the institutions responsible for carrying out digital financial exchanges? Is it the internet providers who made technology available to the scammers? Or is it the victim who gave away crucial details without taking caution?
- Big Banks fighting back #
The Big Tech was very quick in pinning down the banks and financial institutions of the country by blaming them entirely for the online scams happening so frequently around the globe. But, the banks have united in various countries and fighting back in this “blame-game”.
Banks have already made advancements and introduced systems that include two-factor verifications and APP enabled payments to safeguard the transactions occurring over the web. Different countries have put in place different lines of defence while making digital payments to allow the payees to double-check their details and keep safe hold of their money while transferring amount to the recipients.
With this is place, the banks are building a stricter framework and bending the rules so the fraudsters are not able to sneak in or extract crucial data from their customers.
Refusing to be considered as solely responsible for the phishing scams and online scams, banks are finally proposing “polluter pays” framework that divides the blame equally between the Big tech and Big banks, making it a fair game for all.
- The ‘Polluter Pays’ Framework – what is it and how could it help? #
Polluter pays is the principle basically targeted towards environmental law that renders the polluter financially responsible for the pollution caused and the damage inflicted on the environment. This law was recently enforced by the UK banks and is gaining fair recognition.
Applying the polluter pay principle to online financial scams, the Big tech giants like Apple, Facebook/Meta and Alphabet are equally responsible and should contribute to the reimbursement funds in case of virtual frauds.
The enforcement of the polluter pay system will ensure that the big techs take equal responsibility and introduce stricter rules in online payment ensuring safer dealings and better protection of users’ data and credentials. This also relieves the banks of enduring the losses single-handedly in case of online frauds, which directly affects their profits and annual growth in the long run.
- Conclusion #
Even with such a concept in making, Polluter Pays framework is hard to enforce fully as it requires amendments in the policies of government institutions, banks and the giant companies ruling the virtual world. Banks can put their foot forward by identifying the source of scams, which usually involves the four big companies and their weak financial transaction processes.
This is a win-win situation for everyone if the polluter pays principle is well thought and put into place at the earliest and may well, prove to be a major hindrance for the increasing number of online frauds and scams.
Questions and answers #
What is the main point? #
The concept of digitalising everything has been the driving force behind getting things done for the present generation.
What else did the original piece say? #
A few years back ordering any product online seemed to be a huge risk and people dreaded clicking even on COD purchases.