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Highlights:
- Revolut calls on Meta Platforms to share reimbursement costs for fraud victims, as 62% of scams originate from its platforms.
- The fintech criticizes a recent data-sharing initiative with UK banks, calling it insufficient in tackling fraud.
- Revolut urges Meta to take financial responsibility for fraud, not just share data, to protect consumers.
Revolut has called on Meta Platforms (NASDAQ:META), the parent company of Facebook, Instagram, and WhatsApp, to share the costs of reimbursing fraud victims, citing that a significant portion of scams originate from its social media platforms. According to a report released by Revolut, 62% of scams reported by its customers in the first half of 2024 stemmed from Meta's platforms, with Facebook alone accounting for 39% of fraud volumes and WhatsApp responsible for 18%.
The fintech firm criticized a recent data-sharing initiative between Meta, NatWest, and Metro Bank, aimed at preventing fraud, as insufficient. Revolut's head of financial crime, Woody Malouf, stated that the agreement was a "baby step" and that much more aggressive action is needed. "What is urgently needed now is for Meta and other social media companies to commit to supporting victims of fraud in the same way financial institutions do," Malouf emphasized.
Revolut’s report further highlighted that despite growing awareness of fraud risks, the percentage of scams originating from Meta’s platforms has remained relatively stable, with 64% of scams reported in the second half of 2023 coming from the same sources. The fintech urged Meta to go beyond data sharing and take financial responsibility for its role in enabling fraud.
In response to these concerns, Meta has stated that it is working with banks to improve fraud detection and prevention, but Revolut insists that the social media giant must go further by directly supporting fraud victims.
