U.K.-based fintech company Revolut has called on Mark Zuckerberg-led Meta Platforms Inc. META to help cover the costs of reimbursing victims of fraud.
What Happened: On Thursday, Woody Malouf, Revolut’s head of financial crime, dismissed Meta’s initiative to “launch a data-sharing partnership with U.K. banks and financial institutions to prevent fraud,” calling it insufficient.
Malouf argued that tech platforms like Meta bear no responsibility in reimbursing victims, thus lacking incentive to tackle the issue.
“These platforms share no responsibility in reimbursing victims, and so they have no incentive to do anything about it. A commitment to data sharing, albeit needed, simply isn't good enough,” he stated.
According to a new report from Revolut released on the same day, 69% of scams reported by U.K. customers in the first half of this year originated from Meta platforms, including Facebook and Instagram.
This marked an increase from 67% in the second half of last year.
“We are confident in the steps the UK government is taking to tackle fraud, but what is urgently needed now is for Meta and other social media companies to commit to supporting victims of fraud in the same way financial institutions do. Their silence on this issue says it all,” said Malouf.
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Why It Matters: This is not the first time Meta has faced criticism for its role in fraud cases.
Earlier this year, South Korea’s antitrust watchdog considered sanctions against Meta due to alleged shortcomings in consumer protection on its online marketplaces.
In December 2022, Zuckerberg was sued for his platform’s role in a marijuana investment scheme.
As the internet continues transforming society and how people interact, trust and safety on social media platforms and marketplaces have become increasingly important.
Check out more of Benzinga’s Consumer Tech coverage by following this link.
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