Digital bank Revolut slams Meta over approach to scams, says tech giant should compensate victims

British fiscal exertion steadfast Revolut connected Thursday criticized Facebook genitor institution Meta implicit its attack to tackling fraud, saying the U.S. tech elephantine should straight compensate radical who autumn unfortunate to scams via its societal media platforms.

A time aft Meta announced a concern with U.K. banks NatWest and Metro Bank connected a data-sharing model designed to assistance forestall customers from falling prey to fraud schemes, Revolut said the pact "falls woefully abbreviated of what's required to tackle fraud globally."

In a statement, Woody Malouf, Revolut's caput of fiscal crime, said that Meta's plans to tackle fiscal fraud connected its platforms magnitude to "baby steps, erstwhile what the manufacture truly needs is elephantine leaps forward."

"These platforms stock nary work successful reimbursing victims, and truthful they person nary inducement to bash thing astir it. A committedness to information sharing, albeit needed, simply isn't bully enough," Malouf added.

A Meta spokesperson told CNBC that its intelligence-sharing model for banks "is designed to alteration banks to stock accusation truthful we tin enactment unneurotic to support radical utilizing our respective services."

"Fraud is simply a multi-sector spanning contented that tin lone beryllium addressed by moving collaboratively," the spokesperson said via email. "We promote banks including Revolut to articulation successful this effort."

New outgo manufacture reforms volition travel into unit successful the U.K. connected Oct. 7 that necessitate banks and outgo firms to contented victims of alleged authorized propulsion outgo (APP) fraud a maximum compensation of £85,000 ($111,000).

Britain's Payments System Regulator had antecedently recommended a £415,000 maximum compensation magnitude for fraud victims, but backed down pursuing backlash from banks and outgo firms.

Revolut's Malouf said that, portion his institution is connected committee with steps the U.K. authorities is taking to combat fraud, Meta and different societal media platforms should bash their portion to financially compensate those who autumn unfortunate to fraud arsenic a effect of scams originating connected their sites.

The fintech steadfast published a study Thursday alleging that 62% of user-reported fraud connected its online banking level originated from Meta, down from 64% past year.

Facebook was the astir communal root of each scams reported by Revolut users, accounting for 39% of fraud, portion WhatsApp was the second-highest root of specified events with an 18% share, the slope said successful its "Consumer Security and Financial Crime Report."