American tech giants Apple, Google, and Microsoft, which have huge markets in Europe, have been asked by European Union (EU) technology regulators about what measures they are taking to prevent their platforms from being used for financial fraud, further highlighting Europe’s concerns about the problem and cost of online fraud.
Reuters reported that the EU is increasing regulatory scrutiny of major US technology companies through the Digital Services Act (DSA), a landmark law that will require tech giants to do more to tackle illegal and harmful content on their platforms.
“Today, we sent requests for information, under the DSA, to Apple, Booking.com, Google, and Microsoft on how they identify and manage risks related to financial scams,” EU tech chief Henna Virkkunen wrote on X (formerly Twitter) on Wednesday, September 24.
“Online fraud can start very easily nowadays, and too often results in financial losses for consumers,” he added in the post.
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From fake hotel listings and fraudulent banking apps to false investment campaigns using people’s personal information, online fraud is costing Europeans more than 4 billion euros ($4.7 billion) annually, according to the EU tech chief.
On the other hand, regulators around the world have expressed concerns that the rapid development of AI could expose customers to scams such as phishing and fraudulent investment schemes.
This article includes reporting from Reuters.