Revolut criticises Meta for insufficient fraud prevention measures, demanding social media platforms share financial responsibility.
- Revolut claims financial institutions alone are unfairly burdened with compensating fraud victims, calling for social media accountability.
- The fintech highlights social media, particularly Meta’s platforms, as primary channels for fraud, responsible for a substantial percentage of reported scams.
- Revolut’s Woody Malouf underscores the necessity for more significant action from Meta, criticising their measures as mere ‘baby steps’.
- Meta defends its collaborative approach, inviting financial firms like Revolut to participate in its Fraud Intelligence Reciprocal Exchange programme.
Revolut has raised concerns regarding the current distribution of responsibility for fraud reimbursements, arguing that financial institutions are disproportionately burdened. The fintech has publicly criticised Meta, particularly in light of its recent collaboration with UK banks aimed at tackling digital fraud. Revolut has labelled Meta’s measures as ‘baby steps’ insufficient to address the pressing issue.
The core of Revolut’s argument lies in the assertion that the present system, where financial entities bear the brunt of fraud compensation, lacks fairness. They assert that social media platforms, such as those owned by Meta, facilitate fraud and thus should share the responsibility of reimbursing victims.
Woody Malouf, head of financial crime at Revolut, has strongly stated that the burden of fraud costs is currently borne entirely by victims and financial companies. He emphasises that there are minimal motivations for social media entities to enact substantial change, remarking, “The issue is just as bad today as it was last year.”
Revolut’s data points to a significant proportion of scams originating from Meta’s platforms, with Facebook alone accounting for nearly half of the scam cases reported to them in the UK during the first half of 2024. They urge Meta and similar platforms to offer support to fraud victims to the level expected of financial firms.
In response, Meta has highlighted its commitment to a sector-spanning cooperative approach to fraud prevention. Their Fraud Intelligence Reciprocal Exchange (FIRE) programme is a step towards this, encouraging banks to share fraud intelligence with Meta. A spokesperson emphasised the need for collaboration, stating, “Fraud is a multi-sector spanning issue that can only be addressed by working collaboratively.”
Revolut continues to advocate for a more equitable distribution of fraud liability, stressing greater accountability from social media companies like Meta.
