Keystone-SDA
(Keystone-ATS) On Thursday, the British online bank Revolut urged Meta to compensate victims of fraud instead of merely sharing data, a practice that the American giant has agreed to with some banks.
Revolut “urges Meta to commit to contributing to the compensation of fraud victims, as its recently announced data-sharing partnership with British banks and financial institutions does not adequately address the global battle against fraud,” the bank stated in a press release.
The parent company of Facebook, Instagram, and WhatsApp revealed in a press release on Wednesday a collaboration with two British banks, NatWest and Metro Bank, “to help protect individuals against fraud (…) through shared data.”
According to Woody Malouf, the head of financial crime prevention at Revolut, these measures represent only “very small steps, while the industry requires substantial progress.”
He expressed disappointment that “social networks rarely accept any responsibility” for reimbursing victims, thereby lacking an incentive to combat the issue effectively.
A Revolut financial crime report indicates that “Meta platforms remain the largest source of all scams (62%) reported to Revolut globally in the first half of 2024,” a figure that is relatively stable compared to the second half of 2023 (64%).
Facebook alone accounts for over 39% of fraud volumes worldwide, and 28% in France, according to this research.
“We appreciate the French government’s actions” to combat fraud, “such as the Naegelen law, but Meta and other platforms must also pledge to support victims, just as financial institutions do,” added Mr. Malouf.
A law backed by French MP Christophe Naegelen (Liot, Liberté, Indépendants, overseas, territories, centrists), enacted in July 2020, regulates telephone marketing and addresses fraudulent calls.
Fintech company Revolut has 45 million customers globally, including over 3.5 million in France.
(Keystone-ATS) The British online bank Revolut has recently made headlines by calling on Meta to reimburse victims of fraud rather than merely sharing data with financial institutions. This challenge comes amid growing concerns over the role of social media platforms in enabling fraud.
Fraud in the Digital Age
The convenience of online banking and social media has unfortunately made it easier for fraudsters to exploit unsuspecting victims. According to a Revolut financial crime report, Meta platforms are responsible for a staggering 62% of all scams reported globally to Revolut in the first half of 2024. This has remained consistent with the second half of 2023, where social media scams represented 64% of all reported fraud cases.
The Impact of Social Media on Fraud
Platforms like Facebook and Instagram have become breeding grounds for scams, with Revolut’s report indicating that:
- Facebook alone accounts for over 39% of fraud volumes worldwide.
- In France, 28% of reported scams originated from this platform.
This high incidence of fraud highlights a crucial aspect: while financial institutions can identify and report scams, social media platforms have not taken adequate responsibility for the environments they create.
Revolut’s Position
Revolut’s Chief of Financial Crime, Woody Malouf, has vocalized the bank’s discontent with Meta’s recent announcements regarding partnerships with British banks like NatWest and Metro Bank. While these partnerships are a step towards combating fraud, they are viewed as “very small steps” that do not address the larger scale of the problem. Malouf argues that social networks must share the burden of responsibility closely with financial institutions.
Legislative Trends Against Fraud
In recent years, various governments have begun implementing laws that aim to curb digital fraud. One notable measure in France is the Naegelen Law, supported by MP Christophe Naegelen, which regulates telephone canvassing and combats fraudulent calls. Promulgated in July 2020, such legislation serves as a framework for addressing issues of fraud within digital arenas.
The Role of Financial Institutions
With Revolut holding approximately 45 million customers worldwide, including over 3.5 million in France, the bank is in a unique position to advocate for change. Their recent press release emphasizes the need for platforms like Meta to contribute financially to the reimbursement of fraud victims, akin to the responsibilities held by traditional banking establishments.
What Can Victims Do?
If you have fallen victim to a scam, consider taking the following steps:
- Report the Incident: Contact your bank or financial institution immediately.
- Document Everything: Keep records of communication related to the scam.
- Alert Law Enforcement: Report the fraud to local authorities and any necessary regulatory bodies.
- Notify Meta: While it may seem futile, informing the platform may help improve future fraud detection measures.
Case Study: Revolut vs. Digital Fraud
Revolut’s approach to combating digital fraud involves leveraging technology for real-time fraud detection and prevention. The bank has implemented various tools and protocols that aim to protect customers:
| Tool/Protocol | Description |
|---|---|
| Real-Time Alerts | Instant notifications about transactions that appear suspicious. |
| Advanced Machine Learning | Utilizes algorithms to identify patterns indicative of fraud. |
| User-Controlled Security Features | Allows users to set their own security preferences and limits. |
By utilizing these methods, Revolut aims to not only enhance the safety of its customers but also set a precedent for other financial technology companies.
The Future of Digital Fraud Prevention
As the digital landscape continues to evolve, so too will the tactics employed by fraudsters. The necessity for collective responsibility among social media platforms, banks, and regulatory bodies has never been more critical. Revolut’s call to action for Meta to join in the fight against fraud emphasizes the importance of comprehensive solutions that protect individuals in an increasingly connected world.
The ongoing dialogue between Revolut, financial institutions, and social media giants like Meta serves as a reminder of the shared responsibility in combating the pervasive issue of digital fraud. It is clear that without proactive engagement and accountability, the trend of rising scams will continue.
