Revolut CEO Nikolai Storonsky (left) and Meta CEO Mark Zuckerberg.
Reuters
British financial technology company Revolut on Thursday criticized Facebook’s parent company Meta’s anti-fraud efforts, saying the US tech giant should directly compensate people who have fallen victim to fraud through its social media platforms.
the next day meta Announces partnership with UK bank natwest Revolut said it had partnered with Metrobank on a data-sharing framework designed to protect customers from falling prey to fraud schemes, adding that the agreement “goes far beyond what is needed to combat fraud around the world.” No,” he said.
Woody Maloof, Revolut’s head of financial crime, said in a statement that Meta’s plans to tackle financial fraud on the platform amounted to “a baby step at a time when what the industry really needs is a giant leap forward.” Ta.
“These platforms don’t share the responsibility to compensate victims, so they have no incentive to do anything about it. Data sharing efforts, while necessary, simply aren’t enough,” Malouf added. Ta.
CNBC has reached out to Mehta for comment.
New payments industry reforms will come into effect in the UK on October 7, requiring banks and payment companies to pay up to £85,000 ($111,000) in compensation to victims of so-called authorized push payment (APP) fraud. require payment.
Britain’s Payment Systems Regulator had previously recommended compensation of up to £415,000 to victims of fraud, but it withdrew the recommendation after a backlash from banks and payment companies.
Revolut’s Malouf said the company supports the steps the UK government is taking to combat fraud, but that Meta and other social media platforms have been hit hard by fraud as a result of fraud originating from their sites. He said the government should play a role in providing financial compensation to those affected. .
The fintech company released a report Thursday claiming that 62% of fraud reported by users on its online banking platform stems from meta, down from 64% last year.
The most common source of all scams reported by Revolut users was Facebook, accounting for 39% of scams, while WhatsApp was the second most common source of such incidents, accounting for 18% share. The bank said in its Consumer Security and Financial Crimes Report..”
