Revolut, a prominent UK-based fintech company, has taken a firm stance against Meta, calling on the tech giant to step up its efforts in combating fraud on its platforms. Revolut’s head of financial crime, Woody Malouf, dismissed Meta’s recent initiative to share data with UK banks as insufficient, emphasizing the need for Meta to actively contribute to reimbursing victims of fraud.
Malouf argued that tech platforms like Meta, while profiting from their services, have a responsibility to address the issue of fraud effectively. He stated, “These platforms share no responsibility in reimbursing victims, and so they have no incentive to do anything about it. A commitment to data sharing, albeit needed, simply isn’t good enough.”
Revolut’s own report, released concurrently with the call for action, revealed a stark reality: 69% of scams reported by UK customers in the first half of 2024 originated from Meta platforms, including Facebook and Instagram. This figure represents an alarming increase from 67% reported in the second half of 2023.
“We are confident in the steps the UK government is taking to tackle fraud, but what is urgently needed now is for Meta and other social media companies to commit to supporting victims of fraud in the same way financial institutions do. Their silence on this issue says it all,” Malouf stated.
This isn’t the first time Meta has faced criticism for its role in fraud cases. Earlier this year, South Korea’s antitrust watchdog considered sanctions against Meta due to alleged shortcomings in consumer protection on its online marketplaces. In December 2022, Mark Zuckerberg, Meta’s CEO, was even sued for his platform’s alleged involvement in a marijuana investment scheme.
As the internet continues to transform society and how people interact, trust and safety on social media platforms and marketplaces become increasingly crucial. Revolut’s call for Meta to take responsibility for fraud victims reflects a growing sentiment that tech companies need to proactively address the issues arising from their platforms, especially when they directly impact users’ financial well-being.
