Revolut Criticizes Meta for Weak Fraud Response, Calls for Victim Compensation
Revolut has called out Meta for failing to adequately address fraud on its platforms, urging the tech giant to compensate scam victims.
On Thursday, British fintech company Revolut criticized Meta, Facebook's parent company, for its insufficient approach to addressing fraud on social media platforms. Revolut urged Meta to take more direct responsibility by compensating victims of scams originating on its services.
The critique followed Meta's announcement of a partnership with U.K. banks NatWest and Metro Bank to create a data-sharing framework aimed at fraud prevention. Revolut, however, claimed the effort “falls woefully short of what’s required to tackle fraud globally.”
Woody Malouf, Revolut’s head of financial crime, stated that Meta’s plans to combat financial fraud were mere “baby steps” compared to the “giant leaps forward” the industry desperately needs.
“These platforms bear no responsibility for reimbursing victims, and because of that, they have no incentive to act decisively. While data sharing is important, it’s simply not enough,” Malouf said.
In response, a Meta spokesperson emphasized that the intelligence-sharing framework enables banks and tech firms to work together to protect consumers. “Fraud is a multi-sector issue, best addressed through collaboration,” the spokesperson added, encouraging other firms, including Revolut, to join the effort.
New U.K. regulations, effective October 7, will require banks and payment services to compensate victims of authorized push payment (APP) fraud with up to £85,000 ($111,000). Previously, the Payments System Regulator had recommended a £415,000 compensation cap but revised it after opposition from banks and payment firms.
While Revolut supports the U.K. government's anti-fraud initiatives, Malouf stressed that social media platforms like Meta must do more by financially compensating victims of scams originating on their platforms.
Revolut's recently published report revealed that 62% of user-reported fraud on its platform in the past year originated from Meta platforms, with Facebook accounting for 39% and WhatsApp for 18%.
As pressure mounts on Meta to take greater responsibility, the spotlight remains on how tech giants will respond to calls for victim compensation and more robust fraud prevention.