Revolut’s scam complaints soar as APP fraud hits UK

Revolut has recently faced a significant surge in scam complaints, highlighting critical issues within its security and customer service frameworks. Revolut has reportedly denied thousands of British customers reimbursement requests after they were defrauded.

According to data from the Financial Ombudsman Service (FOS), Revolut experienced a 35% increase in new fraud complaints in the latter half of 2023, surpassing all other British lenders.

This rise in complaints is particularly concerning as the UK grapples with a wave of authorised push payment (APP) fraud, where scammers deceive consumers into transferring money to accounts outside their control.

The broader implications for digital banking and fintech security standards are significant.

The UK is set to introduce new regulations requiring banks and fintechs to reimburse victims of APP fraud, a move that the industry argues will be costly and potentially ineffective. These new rules, effective from October, will place additional pressure on financial institutions to enhance their fraud prevention measures.

The liability for reimbursement will be shared between the sending and receiving payment service providers, up to a value of £415,000.

A representative from the FOS reported that the ombudsman has investigated thousands of cases, recovering over £150 million for crime victims in recent years.

Impact on customers

The impact on Revolut’s customers has been severe. Thousands of British consumers have had their reimbursement requests denied by the fintech giant, prompting many to seek assistance from the FOS.

Despite the Ombudsman ordering Revolut to reimburse customers in nearly half of the cases it reviewed, the company has continued to deny claims, according to data from law firms representing affected customers. This has led to a growing dissatisfaction among users, who are already struggling in a challenging economic climate.

Revolut has stated that it takes fraud and the threat posed by organised criminals very seriously. The company claims to have robust protections in place, including artificial intelligence models and a team of over 4,000 trained anti-financial crime professionals.

Despite these measures, the fintech has faced criticism for its handling of fraud cases and its reluctance to reimburse victims.

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