An investigation highlights Revolut, the UK’s newest bank, accumulating a disproportionate amount of fraud complaints compared to its peers.
- Over the past year, Revolut was named in nearly 10,000 fraud complaints, exceeding figures from established banks such as Barclays and fintech rival Monzo.
- Customer concerns include inadequate security measures and insufficient support systems, as illustrated by a significant business account theft incident.
- Internal sources critique Revolut’s prioritisation of product launches over comprehensive financial crime protection.
- While Revolut asserts its dedication to security and blames partial responsibility on social media scams, it also navigates new regulatory adjustments.
In the latest findings, Revolut, a prominent fintech based in Canary Wharf, stands out with nearly 10,000 fraud complaints this past year, according to a BBC Panorama investigation. This figure not only surpasses its fintech rival, Monzo, but also established banks like Barclays, raising substantial concerns regarding its security protocols.
Despite possessing a provisional banking licence since July, Revolut faces criticism from customers over its handling of fraud incidents. One alarming case involved a customer’s £165,000 being stolen from a business account, with the victim citing a lack of immediate support and no accessible helpline as core issues.
A company insider anonymously disclosed to the BBC that Revolut’s focus on product development often overshadowed its commitment to financial crime prevention. This assertion contradicts the company’s public statement that emphasises a high-performance culture geared towards favourable customer outcomes.
Revolut maintains it has invested significantly in fortifying its financial crime prevention strategies, constituting more than a third of its global workforce. The fintech also attributes a portion of the fraud issues to social media scams, specifically calling for companies like Meta to bear responsibility in reimbursing victims.
In adapting to its new regulatory landscape, Revolut has revised its account closure policies, no longer requiring ‘good reason’ to terminate accounts, a move intended to align with industry standards. However, this comes amid sector apprehension as the Payment Systems Regulator (PSR) has lowered the reimbursement limit for authorised push payment fraud, perceived as a potential setback in combating financial crime.
Revolut’s increasing fraud complaints underscore the urgent need for enhanced security measures and regulatory compliance adjustments.
