Revolut has been identified in more fraud complaints than any other major UK bank, as revealed in a recent report. Concerns have been raised about the efficacy of its security controls following findings from a BBC Panorama investigation. Some Revolut customers shared their experiences of not being adequately protected when targeted by scammers.
In the past year, Action Fraud in the UK received a staggering 9,793 reports of fraud involving Revolut, surpassing complaints against Barclays and Lloyds by approximately 2,000 cases. This number was twice as high as the reports involving Monzo, a digital bank with around 10 million customers in the UK. Despite having over nine million customers in the UK and 45 million worldwide, Revolut was classified as an electronic money institution until recently.
Having secured a banking licence in the UK in July after a three-year wait, Revolut is now working on expanding its banking operations. This transition will allow the firm to hold customer deposits and offer financial products such as credit cards, personal loans, and mortgages. In response to the report, Revolut acknowledged that a “small number” of customers had negative experiences but stressed that the majority of customers are satisfied with their products and services.
A Revolut customer shared his unfortunate experience with the BBC, revealing that £165,000 was stolen from his business account by fraudsters. Despite contacting Revolut through the app’s chat function, it took 23 minutes to freeze the account, during which £67,000 more was siphoned off. The customer expressed disappointment in the app’s failure to detect suspicious activities promptly.
Rocio Concha from the consumer group Which? highlighted the investigation’s implications, suggesting that some banks and payment firms might not be taking fraud prevention seriously enough. She urged the Government and regulators to ensure that robust measures are in place to safeguard consumers from scammers. Revolut recently disclosed that a significant portion of reported scams (62%) were linked to Meta, the parent company of Facebook and Instagram. The company called on Meta to share responsibility for reimbursing fraud victims.
Revolut reported that it prevented over £475 million in potential fraud losses for its customers globally in 2023. Recognising the ongoing challenges posed by fraud, the company vowed to continue efforts to reduce fraud rates further. The spokesman reiterated Revolut’s commitment to combating fraud and the grave risks posed by organised criminals, underscoring the company’s dedication to addressing this industry-wide issue.