Revolut has called on Meta to take greater responsibility in compensating scam victims, arguing that the social media giant's current anti-fraud efforts "simply aren’t good enough." The digital bank has criticized Meta’s response to tackling financial fraud on its platforms, describing it as "baby steps, when what the industry really needs is giant leaps forward."
Woody Malouf, Revolut’s head of financial crime, voiced frustration over social media platforms' lack of involvement in compensating scam victims. “These platforms share no responsibility in reimbursing victims, and so they have no incentive to do anything about it,” Malouf said. He added, “A commitment to data sharing, albeit needed, simply isn’t good enough.”
Revolut's statements represent the latest push from UK financial institutions urging social media companies to shoulder some of the burden of reimbursing scam victims. This comes as new anti-scam rules, effective from Monday, October 7, will require banks and payment firms to compensate victims in most cases, with payouts capped at £85,000—far below the previously suggested ceiling of £415,000 following intense lobbying from banks and politicians.
Despite the lower compensation cap, many UK banks remain dissatisfied with having to absorb the cost of refunding scam victims. Given that a significant number of scams originate on social media, banks are increasingly calling on tech companies to contribute financially to compensation costs.
Earlier this week, Meta announced a data-sharing partnership with UK banks as part of a broader effort to prevent fraud on its platforms. The move has been widely interpreted as a response to the UK’s new fraud compensation rules, though Revolut believes it falls short of what's required.
"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 said.
According to Revolut, more than half of the scams reported by its UK customers in the first half of this year originated on Meta-owned platforms like Facebook and Instagram. “Social media platforms not only continue to enable fraud,” Malouf continued, “the issue is just as bad today as it was last year.”
Meta has responded by highlighting its UK data-sharing programme, which is intended to help social media firms and banks collaborate in stopping fraud. “We encourage banks including Revolut to join in this effort,” a Meta spokesperson said.
By fLEXI tEAM
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