Revolut, the global fintech claiming 50 million+ customers, released its Consumer Security and Financial Crime Report, revealing the evolving tactics of fraudsters globally.
The report highlights that criminals are increasingly “turning to encrypted messaging services to exploit victims, with the proportion of fraud originating on WhatsApp and Telegram rising steeply in the second half of 2024.”
Despite this shift, Meta platforms (Facebook, Instagram, WhatsApp) collectively accounted for “54% of all scams reported to Revolut globally, marking the third consecutive reporting period where Meta has held this position.”
Revolut claims that it takes fraud and the industry-wide risk of customers being coerced “by organized criminals, incredibly seriously, and in 2024 alone, Revolut prevented over £600 million in potential fraud against its customers.”
The business continually enhances security features, this year launching in-app calls to help customers “expose impersonation scams, as well as implementing real-time AI fraud detection systems, transaction limits, biometric authentication requirements and providing educational resources to help consumers stay informed about potential risks.”
However, financial institutions cannot single-handedly “combat the vast scale of scams originating on social media platforms.”
Key findings of Revolut’s latest Consumer Security and Financial Crime Report highlights:
- Encryption doesn’t equal protection – Fraud originating from WhatsApp and Telegram now accounts for well over a third of reported scams (39%), as criminals are increasingly turning to encrypted messaging services to exploit victims. Consumers are led to believe these platforms are secure, yet the number of cases stemming from Telegram jumped by a staggering 121% in H2, while Whatsapp cases rose by a similarly concerning 67%.
- Meta remains the largest source of scams – Despite the growth elsewhere, Meta’s platforms account for more than half (54%) of scams reported to Revolut globally in H2 2024. This marks the third consecutive reporting period where Meta has held this position.
- Purchase Scams continue to dominate, with ticket scams targeting younger generations – Despite the ever-changing nature of fraud, the prevalence of purchase scams remains constant. The second half of 2024 witnessed a troubling trend in ticket scams, as criminals targeted younger demographics, with individuals aged 17-24 and 25-34 accounting for the vast majority of reported cases (36% & 38% respectively).
These figures are not just statistics; they represent “real people, real losses, and a significant breach of trust.”
Revolut’s Head of Financial Crime, Woody Malouf, commented:
“Fraudsters are rapidly adapting their tactics, increasingly exploiting supposedly secure encrypted messaging apps like WhatsApp and Telegram. Yet, despite repeated calls from Revolut and other financial institutions, social media platforms are failing to address the fraud plaguing their users, and their inaction is not just negligent; it’s a direct enabler of financial crime. We need immediate, decisive action, not empty promises.”
Revolut are demanding more than “reactive” measures; advocating for proactive intervention, including more “stringent verification processes for advertisers and content creators, robust AI-driven monitoring, and seamless collaboration with financial institutions and law enforcement.”
Additionally, Revolut continues to push for commitments from social media companies to “share reimbursement for victims of scams originating on their platforms.”
The current status quo “remains unacceptable.”
As noted in the update, all statistics shared come “from Consumer Security and Financial Crime Report & Revolut internal data.”