Revolut Finds 60% of UK Scam Cases Stem from Meta Platforms, Urges Vigilance

Revolut, a prominent finance app based in London, revealed that the majority of scam cases reported in the UK last year originated from social media platforms owned by Meta Platforms Inc., including Facebook, Instagram, and WhatsApp. According to Revolut's findings, 60% of scam incidents in the UK and 61% across Europe began on Meta services, with many victims falling prey to fraudulent investment schemes promising quick wealth.

Woody Malouf, Revolut's head of financial crime, emphasized that Meta platforms have become breeding grounds for scams and cautioned customers against engaging with dubious investment opportunities. Malouf stressed the importance of banks and financial institutions not being the sole line of defense against such scams but rather the last resort.

The surge in authorized push payment fraud, which involves tricking individuals into transferring money to accounts controlled by criminals, has prompted scrutiny from UK lawmakers. According to the Payment Systems Regulator, these scams resulted in nearly £500 million in losses in 2022. Starting in October, payment firms will be required to reimburse victims of fraudulent payments unless they can demonstrate gross negligence, a change that will particularly impact newer and smaller finance companies.

The Payment Systems Regulator identified Monzo, Starling, and Metro Bank Holdings Plc as firms with a high proportion of authorized push payment fraud, with over 100 frauds per million transfers sent. In response to the rise in online fraud, tech companies have signed a voluntary online fraud charter aimed at preventing more scams from reaching consumers. However, some companies, such as Starling, have criticized Meta for not taking sufficient action to address the issue.

Original article by Business Standard