Revolut is urging social media companies, particularly Meta, to take greater responsibility for preventing and compensating fraud victims. Currently, financial institutions are often left to shoulder the burden of reimbursement, which Revolut deems unfair. Revolut critiques Meta’s latest measures against fraud as insufficient. Meta has launched a partnership with UK banks to combat fraud collaboratively. Revolut reports a significant proportion of scams originating from Meta platforms.
Revolut is pushing for social media firms like Meta to be held accountable for fraud cases that occur on their platforms. The fintech company argues that the current system places an undue financial burden on banks to reimburse fraud victims. Revolut’s Head of Financial Crime, Woody Malouf, emphasised the need for social media platforms to take ‘giant leaps forward’ rather than making ‘baby steps’ in addressing the issue.
Revolut’s critique aligns with its response to a recent partnership between Meta and UK banks, aimed at sharing information to tackle digital fraud. This initiative, known as the Fraud Intelligence Reciprocal Exchange (FIRE) programme, has been extended after an initial six-month pilot. It facilitates the exchange of fraud-related data between British banks and Meta, enabling the social media giant to enhance its fraud prevention mechanisms.
A spokesperson for Meta highlighted the multi-sector nature of fraud, underscoring the necessity of collaborative efforts. Meta’s scheme encourages banks to share insights, which can help trace the source of fraudulent activities on platforms like Facebook and Instagram. This aligns with Meta’s strategy to bolster its protective measures against financial crime.
Revolut has reported that a significant proportion of scams targeting its users originate from Meta’s platforms. In the first half of 2024, Meta platforms accounted for 62% of scams reported to Revolut, with Facebook alone responsible for 45% of these cases in the UK. This statistic underscores Revolut’s pressing call for social media platforms to align their fraud responsiveness with that of financial institutions.
Revolut has been proactive in strengthening its own defence against financial crime, expanding its financial crime team to over a third of its 10,000-strong workforce. The company continues to enhance its anti-fraud capabilities as it approaches obtaining a UK banking licence.
Revolut’s stance highlights a pressing need for collaborative responsibility in combating fraud across financial and social media sectors.
