Banking fraud: Revolut asks Meta to reimburse victims defrauded through its platforms

by time news

2024-10-04 08:17:48

British online bank Revolut on Thursday asked Meta to reimburse fraud victims, rather than simply sharing their data, as the American giant has pledged to do with some banks.

Revolut “calls on Meta to commit to contributing to the reimbursement of fraud victims, considering that its recently announced data sharing partnership with UK banks and financial institutions is far from being able to meet the needs of the fight against fraud fraud on a global scale,” the bank said in a press release.

The parent company of Facebook, Instagram and WhatsApp announced in a press release on Wednesday a partnership with the two British banks NatWest and Metro Bank “to help protect people from fraud (…) through data sharing”.

According to Revolut’s head of fighting financial crime, Woody Malouf, these are only “very small steps, while the sector needs real progress”. He regrets that “social networks never share the responsibility” of compensating victims and therefore have no incentive to fight the phenomenon.

“Multi-sectoral problem”

“Fraud is a multi-sector problem that can only be solved by working collaboratively. Our Fraud Reciprocal Information Exchange (FIRE) pilot program is designed to allow banks to share information so we can work together to protect the people who use our respective services. We encourage banks, including Revolut, to join this effort,” a Meta spokesperson responded on Thursday afternoon.

According to a Revolut report on financial crime “Meta platforms remain the main source of all scams (62%) reported to Revolut globally in the first half of 2024”, a relatively stable proportion compared to the second half of 2023 (64%) . According to this study, Facebook alone is the source of more than 39% of fraud volumes worldwide and 28% in France.

“We welcome the French government’s measures” to fight fraud, “such as the Naegelen law, but Meta and other platforms must also commit to supporting victims, as financial institutions do,” added Woody Malouf. A law supported by French MP Christophe Naegelen (Liot, Liberté, Indépendants, Overseas, Territories, Centrists), promulgated in July 2020, regulates telephone campaigns and fights against fraudulent calls.

Fintech Revolut has 45 million customers worldwide, including over 3.5 million in France.

#Banking #fraud #Revolut #asks #Meta #reimburse #victims #defrauded #platforms

You may also like

Leave a Comment