In 2023, Revolut’s findings indicate that a significant portion of reported scams in the UK originated from Meta platforms. The analysis revealed that 60% of all scam cases reported by Revolut’s UK customers came from just three sources: Facebook, Instagram, and WhatsApp. Furthermore, a striking 33% of all money lost to scams was linked to these Meta platforms during the same period.
The trend is alarming, with Revolut noting an increase in scams originating from Meta platforms—rising from 52% of reported cases in the first half of the year to 66% in the latter half. This pattern was also evident in Revolut’s European markets, where 61% of scam cases in the EEA were traced back to Meta, with 37% of the total monetary losses stemming from the social media giant.
Investment scams led to 59% of all online money lost in 2023, despite making up only 17% of total scam cases, indicating that substantial amounts were lost in relatively few incidents. In contrast, purchase scams, comprising 50% of UK cases, accounted for less than 6% of the total value lost.
Woody Malouf, Revolut’s group head of financial crime, highlighted the urgent need to address scams proliferating on Meta platforms. He stated, “Our data shows that scams are being facilitated through social media, particularly investment scams resulting in significant financial losses.” Malouf emphasized Revolut’s commitment to combating cyber fraud, noting that the company had saved its customers over £200 million from fraudulent transactions in 2022 alone.
Malouf argued for a multi-faceted approach to fraud prevention, asserting that financial institutions should provide an additional layer of security rather than being the only defense. Other banking representatives echoed this sentiment during a recent committee hearing, stressing the responsibility of social media companies to implement more robust fraud prevention measures.
Philip Milton, Meta’s public policy head, testified on the company’s efforts in fraud prevention, mentioning features such as ad verification and compliance with the UK’s Financial Services Verification process. He noted that Meta removed 827 million fake accounts in the third quarter of 2023 as part of its fraud prevention strategy.
The FCA has called on social media firms to enhance their efforts to combat mass fraud. The authority had previously issued over 2,286 warnings about unauthorized firms and individuals operating in the previous year—a 21% increase from 2022.
In an effort to tackle the surge of scams linked to fake advertisements, eleven major tech firms and social media platforms signed the UK Online Fraud Charter. This agreement aims to verify new advertisers and swiftly remove fraudulent content. The FCA reported a nearly 100% reduction in illegal paid-for ads on social media since the Charter’s implementation, but it urges these platforms to do more to address non-paid, organic scam promotions.