At Extreme Investor Network, we pride ourselves on providing valuable and insightful information about the world of finance. Today, we’re going to dive into a recent development in the industry involving British financial technology firm Revolut and tech giant Meta, the parent company of Facebook.
Revolut recently criticized Meta’s approach to tackling fraud, calling for the U.S. tech giant to directly compensate individuals who fall victim to scams on its social media platforms. While Meta announced a partnership with U.K. banks NatWest and Metro Bank to prevent customers from falling prey to fraud schemes, Revolut believes that this initiative is not enough to combat fraud on a global scale.
Woody Malouf, Revolut’s head of financial crime, stated that Meta’s plans to tackle financial fraud are merely “baby steps” when the industry truly needs “giant leaps forward.” He emphasized that social media platforms like Meta should share responsibility in reimbursing fraud victims to create an incentive for them to address the issue effectively.
In the U.K., new payment industry reforms will come into effect on October 7, requiring banks and payment firms to compensate victims of authorized push payment (APP) fraud up to £85,000 ($111,000). Despite earlier recommendations for a higher compensation amount, the Payments System Regulator adjusted the figure following pushback from financial institutions.
Revolut’s report revealed that a significant portion of user-reported fraud on its platform originated from Meta, with Facebook being the most common source of scams at 39%, followed by WhatsApp at 18%. This highlights the need for collaborative efforts between fintech firms, social media platforms, and regulators to effectively combat fraud and protect consumers.
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