Revolut criticizes Meta's approach to scams and urges compensation for victims.

• Revolut stated that the partnership between Meta and U.K. banks NatWest and Metro Bank on a data-sharing framework to prevent customers from falling prey to fraud schemes is inadequate to tackle fraud globally.
• The fintech firm suggested that Meta and other social media platforms should take responsibility for compensating victims of fraud on their platforms.
• From October 7th, new payment industry reforms will be implemented, requiring banks and payment companies to compensate victims of authorized push payment fraud up to a maximum of £85,000.

Revolut, a British financial technology company, criticized Meta, the parent company of Facebook, on Thursday for its approach to combating fraud. Revolut urged Meta to directly compensate individuals who fall victim to scams through its social media platforms.

Revolut stated that the partnership with U.K. banks and Metro Bank on a data-sharing framework to prevent fraud schemes is inadequate to combat fraud worldwide.

Woody Malouf, Revolut's head of financial crime, stated that Meta's plans to combat financial fraud on its platforms are "baby steps" and what the industry requires are "giant leaps forward."

Malouf stated that these platforms do not bear any responsibility for reimbursing victims, hence they have no motivation to take any action. Although a commitment to data sharing is necessary, it is not sufficient.

Meta's intelligence-sharing framework for banks is aimed at facilitating information sharing among banks to enhance security measures and safeguard users.

"The spokesperson stated via email that fraud is a problem that affects multiple sectors and requires collaboration to address. They urged banks, including Revolut, to participate in this effort."

On Oct. 7, new payment industry reforms will be implemented in the U.K., mandating banks and payment firms to compensate victims of authorized push payment (APP) fraud a maximum amount of £85,000 ($111,000).

The Payments System Regulator in Britain initially suggested a maximum compensation amount of £415,000 for fraud victims, but later withdrew this recommendation after receiving opposition from banks and payment companies.

Malouf of Revolut stated that, although his company supports the measures taken by the U.K. government to combat fraud, social media platforms such as Meta should take responsibility and financially compensate victims of fraud caused by scams originating on their sites.

A report published by the fintech firm on Thursday claimed that 62% of user-reported fraud on its online banking platform came from Meta, a decrease from 64% reported last year.

Revolut users reported the most scams from Facebook, which accounted for 39% of fraud cases, while WhatsApp was the second-most common source with an 18% share, according to the bank's "Consumer Security and Financial Crime Report."