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.