Revolut wants Meta to compensate users who fall victim
to scams on its social media platforms, CNBC reported. The fintech giant’s
demands followed Meta’s recent launch of a data-sharing partnership with UK
banks, a move Revolut believes is insufficient to effectively address global
fraud issues.
Revolut Demands More Than Data Sharing
Meta recently announced a partnership with UK banks NatWest and Metro Bank to reduce fraud by sharing data that may help prevent customers from falling prey to scams.
However, Revolut finds this approach inadequate. The
fintech firm believes that, while collaboration is vital, the social media
giant and others like it need to take a more proactive role in supporting fraud
victims. New UK payment industry regulations will reportedly come
into effect this month, requiring banks and payment providers to compensate
victims of authorized push payment fraud.
Initially, the Payments System Regulator suggested a
higher compensation limit, but this amount was scaled back following concerns
raised by banks and payment firms. Revolut supports these measures but insists that the
burden should not fall solely on financial institutions. Social media
platforms, where many scams originate, need to share the responsibility.
Meta’s Role in Fraud Cases
Revolut’s demands echo a broader sentiment among
financial institutions that tech companies must bear greater responsibility for
fraud occurring through their platforms.
While Meta’s recent partnership with UK banks is a
step in the right direction, Revolut said that more substantial measures are
required, ones that ensure accountability and protect consumers more
effectively against the growing threat of online fraud.
Expect ongoing updates as this story evolves.
Revolut wants Meta to compensate users who fall victim
to scams on its social media platforms, CNBC reported. The fintech giant’s
demands followed Meta’s recent launch of a data-sharing partnership with UK
banks, a move Revolut believes is insufficient to effectively address global
fraud issues.
Revolut Demands More Than Data Sharing
Meta recently announced a partnership with UK banks NatWest and Metro Bank to reduce fraud by sharing data that may help prevent customers from falling prey to scams.
However, Revolut finds this approach inadequate. The
fintech firm believes that, while collaboration is vital, the social media
giant and others like it need to take a more proactive role in supporting fraud
victims. New UK payment industry regulations will reportedly come
into effect this month, requiring banks and payment providers to compensate
victims of authorized push payment fraud.
Initially, the Payments System Regulator suggested a
higher compensation limit, but this amount was scaled back following concerns
raised by banks and payment firms. Revolut supports these measures but insists that the
burden should not fall solely on financial institutions. Social media
platforms, where many scams originate, need to share the responsibility.
Meta’s Role in Fraud Cases
Revolut’s demands echo a broader sentiment among
financial institutions that tech companies must bear greater responsibility for
fraud occurring through their platforms.
While Meta’s recent partnership with UK banks is a
step in the right direction, Revolut said that more substantial measures are
required, ones that ensure accountability and protect consumers more
effectively against the growing threat of online fraud.
Expect ongoing updates as this story evolves.
This post is originally published on FINANCEMAGNATES.
