Revolut, a prominent fintech company, has been identified in a notable volume of fraud complaints compared to major UK banks.
- The BBC Panorama investigation revealed nearly 10,000 fraud complaints against Revolut in the past year.
- Comparative data shows Revolut exceeded Barclays by approximately 2,000 complaints, and it doubled the number of its competitor, Monzo.
- Incident reports highlight concerns over security measures and customer support, raising questions about priorities in product launches.
- Revolut has criticised social media platforms, particularly Meta, for insufficient action against fraud, suggesting policy changes are underway.
Revolut, headquartered in Canary Wharf, has come under significant scrutiny following a BBC investigation that reported the fintech was implicated in nearly 10,000 fraud complaints over the last year. This number surpasses the complaints lodged against well-established banks like Barclays, which recorded around 2,000 fewer complaints in the same period. Moreover, Revolut’s figures more than double those of its fintech rival Monzo.
One of the incidents involved a customer who suffered a substantial financial loss of £165,000 from his Revolut business account. He reported the company’s inadequate security measures and the lack of immediate support, facing delays of over 20 minutes when trying to contact customer service via the app’s chat function.
A source within Revolut disclosed concerns that the firm’s focus on rapid product launches took precedence over stringent financial crime prevention. This insider insight raises questions about the balance Revolut maintains between innovation and security.
In its defence, Revolut insists on its commitment to customer protection, citing a culture of high performance and comprehensive risk management in product development. The company claims to have heavily invested in its financial crime prevention team, which constitutes over a third of its global workforce.
Woody Malouf, Revolut’s head of financial crime, has publicly criticised social media companies for their inadequate efforts to combat digital fraud. He specifically targeted Meta, the parent company of Facebook and Instagram, accusing them of only making ‘baby steps’ towards resolving the issue. Malouf argues that the financial burden of fraud lies with the victims and financial institutions, while social media platforms lack motivation to take stronger action.
Revolut is reportedly implementing policy revisions to enhance its operational framework as it transitions into a full-fledged bank. Notably, the company announced changes in its terms and conditions, clarifying that it no longer needs a ‘good reason’ to close customer accounts, aligning with broader industry standards. This announcement coincides with the Payments System Regulator’s decision to reduce the reimbursement limit for Authorised Push Payment (APP) fraud, a change that some critics argue may hinder efforts to combat fraud effectively.
Revolut’s ongoing challenges underscore the complex relationship between fintech innovation and regulatory compliance in the banking sector.
