New EU-wide laws will make social media companies liable for financial fraud

Social media platforms will have to pay banks for reimbursement of their customers if they are informed of fraudulent content but fail to remove it. Stock image

Social media companies such as Facebook and TikTok will be held liable for financial fraud that happens on their platforms under new EU-wide laws.

Amid a huge surge in elaborate online scams, the platforms will have to pay banks or financial institutions for the reimbursement of their customers if they are informed of fraudulent content but fail to remove it.