Meta Platforms Under Fire as Revolut Sounds Fraud Alarm

In the evolving landscape of digital finance, the intersection of social media and financial crime has become increasingly concerning. A new global fraud report from Revolut highlights the significant role that social media platforms, particularly those owned by Meta, play in facilitating online scams. This revelation underscores the urgent need for more stringent measures to combat financial crimes on these platforms.

The Role of Social Media in Financial Crime

The Consumer Security and Financial Crime Report, now in its third iteration, reveals that over half of all fraud cases reported to Revolut in the second half of 2024 were linked to Meta’s platforms, including Facebook, Instagram, and WhatsApp. This marks the third consecutive reporting period where these platforms have topped the list for scam activity, pointing to a persistent issue within Meta's digital ecosystem.

Facebook and Encrypted Messaging Apps

Facebook alone accounted for 28% of reported fraud cases. However, the report also highlights a worrying trend: the rise in fraud through encrypted messaging apps like WhatsApp and Telegram. Together, these apps now account for 39% of all reported scams. Notably, Telegram experienced a 121% rise in reported fraud incidents, while WhatsApp saw a 67% increase during the same period. This surge in fraud via encrypted channels signals a shift in fraudsters’ tactics, exploiting the perceived security of these platforms.

Revolut’s Call for Action

Revolut, a financial services company with over 50 million global customers, is taking a strong stance against what it describes as a culture of indifference among social media platforms. The company is advocating for comprehensive action beyond superficial measures or limited pilot programs. Their recommendations include stricter verification protocols for advertisers, proactive removal of scam content, and a shared financial responsibility for compensating scam victims.

Woody Malouf, Revolut's Head of Financial Crime, criticizes the social media platforms for their inaction. He emphasizes that fraudsters are swiftly adapting their methods to exploit supposedly secure encrypted messaging apps, and their inaction is enabling financial crime.

Persistent Fraud Patterns

Despite evolving tactics, certain fraud patterns remain consistent. Purchase scams, particularly ticket scams, are prevalent, especially among younger users aged 17–34. This demographic accounts for nearly three-quarters of all incidents, indicating a targeted exploitation of their trust and tech-savviness. Although Revolut successfully thwarted over £600 million in attempted fraud in 2024 through in-app safeguards, AI-driven monitoring tools, biometric checks, and real-time alerts, the company asserts that combating this crisis requires more than just financial sector efforts.

The Need for Cooperation

Revolut's message is clear: encryption does not equate to safety, and digital platforms must cease being passive conduits for crime. Instead, they should become active participants in fraud prevention. Without meaningful cooperation from social media platforms, fraud will continue to proliferate unchecked. Revolut suggests that anything less than active involvement is a tacit endorsement of the problem.

Conclusion

The findings from Revolut’s report paint a stark picture of the current state of financial crime facilitated by social media platforms. As fraudsters continue to adapt and exploit digital channels, particularly encrypted messaging apps, the call for more stringent measures and cooperative efforts becomes imperative. Social media platforms, especially those under Meta, must take an active role in fraud prevention to protect users and maintain the integrity of the digital financial ecosystem.