Revolut calls on Meta to share fraud reimbursement responsibility

UK-based fintech Revolut has urged Meta to share responsibility for reimbursing users who fall victim to fraudulent activities.

The call follows Meta's announcement of a new data-sharing partnership with banks and financial institutions aimed at addressing fraud. Revolut argued that this initiative is insufficient to address the broader global fraud issue. 

In its newly released Consumer Security and Financial Crime Report, Revolut disclosed scam and fraud trends from the first half of 2024. The report revealed that 62% of scams reported to Revolut originated from Meta platforms, showing little change from the 64% reported in the second half of 2023.

Concerns over Meta's data-sharing partnership 

Revolut expressed concerns that Meta’s recent partnership with UK banks focuses too heavily on financial institutions sharing data about scams happening on Meta platforms, rather than Meta taking proactive steps to address the problem on its own platforms. Additionally, the initiative is currently limited to the UK, while fraud is a global issue affecting consumers and businesses in various regions. Revolut also noted that Meta has yet to commit to reimbursing fraud victims, despite potentially profiting from fraudulent advertisements on its platforms. 

Revolut’s Head of Financial Crime stated that while the initiative is a step in the right direction, it falls far short of the significant measures needed to address the fraud issue. He emphasised that social media platforms such as Meta continue to facilitate fraud, with victims and financial institutions bearing the financial burden.  

Revolut's report highlights the ongoing risk posed by scams originating from Meta platforms. Globally, 62% of scams reported to the fintech in the first half of 2024 were linked to Meta, with Facebook alone accounting for 39% of those cases. WhatsApp and Telegram followed, representing 18% and 12% of reported scams, respectively. In the Netherlands, 59% of scams originated from Meta, with Facebook accounting for 35%. 

The report further reveals that purchase scams remain the most common form of fraud worldwide, affecting 60% of victims, while job scams have surged from 9% in 2023 to 18% by mid-2024. In the Netherlands, purchase scams accounted for 68% of all fraud cases, followed by job and investment scams.