Big Tech and Banks Dispute Over Responsibility for Fraud Victim Compensation

Banks and big tech firms like Meta are at odds over fraud victim compensation, with Revolut criticizing Meta’s initiatives as insufficient, citing major fraud incidents originating from tech platforms.

A conflict has erupted between banks and big tech firms regarding who should be responsible for compensating victims of fraud. This disagreement comes as UK banks face a new mandate to fully reimburse fraud victims, up to £85,000.

Key Points:

  • Meta’s Initiative: Last week, Meta announced a data-sharing plan with UK banks to combat fraud. However, Revolut, a UK-based challenger bank, criticized this initiative, stating that it “falls woefully short” of addressing the fraud problem.
  • Revolut’s Concerns: According to Revolut’s Consumer Security and Financial Crime Report, 69% of fraud incidents reported to the bank in the first half of 2024 originated from Meta platforms like Facebook, WhatsApp, and Telegram. Revolut argues that Meta’s data-sharing initiative does little to incentivize tech platforms to take responsibility for fraud, as the financial burden still falls on victims and banks.
  • Global Issue: Revolut also emphasized that while Meta’s initiative is restricted to the UK, fraud is a global issue, with £460 million lost to Authorised Push Payment (APP) fraud in 2023 in the UK alone.
  • Meta’s Response: Meta called for more collaboration, urging Revolut and other banks to join its Fraud Intelligence Reciprocal Exchange programme to share data and protect users.

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