Revolut CEO Nikolay Storonsky (left) and Meta CEO Mark Zuckerberg.
Reuters
British fintech company Revolut on Thursday criticized Facebook parent Meta’s approach to fraud, saying the U.S. tech giant should directly compensate victims of fraud through its social media platform.
one day later Yuan Announcement of partnership with Bank of England nativ westminster bank Revolut says the tech company isn’t doing enough.
Woody Malouf, head of financial crime at Revolut, said in a statement that Meta’s plan to combat financial fraud on its platform is just “a small step, and what the industry really needs is a giant leap.”
“These platforms do not assume responsibility for compensating victims, so they have no incentive to take any action. Commitments to data sharing, while necessary, are not sufficient,” Malouf added.
CNBC has contacted Meta for comment.
New payments industry reforms will come into effect in the UK on October 7, requiring banks and payments companies to issue up to £85,000 ($111,000) in compensation to victims of so-called authorized push payment (APP) fraud.
The UK’s payments systems regulator had previously recommended a maximum compensation of £415,000 for fraud victims, but abandoned it amid fierce opposition from banks and payments companies.
Revolut’s Malouf said that while his company supports the UK government’s measures to combat fraud, Meta and other social media platforms should do their part to provide support to those who fall victim to scams originating from their sites. Provide financial compensation.
Fintech company Report to be released on Thursday Meta claims that 62% of fraud reported by users on its online banking platform originated from Meta, down from 64% last year.
In its Consumer Security and Financial Crime Report, the bank said Facebook was the most common source of all scams reported by Revolut users, accounting for 39% of fraud incidents, while WhatsApp was the second-largest source of such incidents, accounting for 39% of incidents. 18%..“
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