Revolut Claims Meta’s Apps, Facebook, Instagram, and WhatsApp, Are Breeding Grounds for Financial Scams
The majority of scams reported to UK finance app Revolut Ltd. last year originated from social media platforms owned by Meta Platforms Inc., with the highest amount of money lost to investment schemes promising quick wealth. According to the London-based fintech, 60% of scam cases in the UK were linked to Facebook, Instagram, and WhatsApp, surpassing other platforms and telephone frauds. Revolut also observed a similar pattern across Europe, with 61% of scams originating from Meta services.
Woody Malouf, head of financial crimes at Revolut, said Meta platforms are “being used as a breeding ground for scams” and urged Revolut customers to avoid so-called investment opportunities. “Banks and financial institutions should be the last line of defense, not the only line of defense.”
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Malouf appeared this week alongside finance and technology leaders before the UK Home Affairs Committee in Parliament, which is investigating the rise of authorized push payment fraud. These scams trick customers into transferring their money to accounts controlled by criminals and were responsible for losses of almost £500m in 2022, according to the Payment Systems Regulator.
From October, payment companies that allow fraudulent payments to be sent and received will have to pay compensation to victims unless they can prove they were guilty of gross negligence.
The rule change applies especially to new, smaller financial companies. PSR found that Monzo, Starling and Metro Bank Holdings Plc were the companies with the highest number of APP frauds, with more than 100 frauds per million transfers sent.
Tech companies, meanwhile, signed a voluntary online fraud charter last year to try to prevent more scams from reaching customers. Starling and others have complained that Meta isn’t doing enough about the problem.
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