Revolut named worst UK bank over fraud allegations

Revolut was named in more fraud complaints than any major UK bank last year, as the financial firm faces questions over the effectiveness of its security controls, according to a new report.

Some Revolut customers said they were not protected when targeted by scammers, according to a BBC Panorama investigation.

Over the past year, UK reporting center Action Fraud has received 9,793 fraud reports naming Revolut, according to a freedom of information (FOI) request filed by Panorama.

This was around 2,000 more than Barclays and Lloyds, and double the number that named Monzo, a digital bank with around 10 million customers in the UK.

Revolut has more than nine million customers in the UK and 45 million worldwide, but until recently it was still classed as an electronic money institution in the UK.

In July, it said it had obtained a banking license in the United Kingdom after a three-year wait for approval.

It is currently in the process of developing its banking operations and will eventually be able to hold customer deposits and offer credit products such as credit cards, personal loans and mortgages.

Revolut said it recognizes that a “small number” of its customers have had negative experiences with the company, but it does not believe that is the case for the “vast majority of customers who continue to enjoy Revolut’s products and services.”

“Revolut takes fraud and the risk of customers being coerced by organized criminals across the industry incredibly seriously,” a spokesperson said.

However, a Revolut customer told the BBC that scammers had stolen £165,000 from his trading account, after being tricked into sharing information and authorizing payments to fake accounts.

Jack, who did not want to give his surname, said that after contacting Revolut via its in-app chat function, it took 23 minutes to get to the correct department to freeze his account, during which time another £67,000 was taken.

He said he felt the app’s systems failed him, that they didn’t automatically detect that a large number of transactions to a new beneficiary could have been suspicious activity.

Rocío Concha, policy and advocacy director at consumer group Which?, said the research suggests “some banks and payments companies are not taking fraud seriously enough.”

He said the Government and regulators must ensure that both payment companies and online platforms implement “significant measures” to protect consumers from fraudsters.

Revolut recently said that Meta, owner of Facebook and Instagram, was behind 62 percent of all scams reported to the company during the first half of 2024, and that it is asking the tech giant to share in refunds for fraud victims.

It also said it prevented more than £475 million in potential fraud losses for its clients worldwide in 2023.

“However, there will always be more to do to address this multi-sector issue and we will continue to work to further reduce fraud rates,” the spokesperson said.