Revolut has reportedly denied thousands of UK customers’ requests for reimbursement after being defrauded by scammers.
According to Bloomberg, the fintech’s actions have prompted many of these customers to seek assistance from the country’s Financial Ombudsman Service (FOS).
The publication, citing data from the FOS, revealed that Revolut experienced a 35% increase in new fraud complaints from customers in the second half of last year, the most recent period for which fraud figures are available.
The news comes just months ahead of the implementation of new, albeit controversial rules regarding reimbursement for Authorised Push Payment (APP) fraud, set to take effect on 7 October.
Given Revolut’s surge in fraud complaints, the UK fintech could face significant challenges under the upcoming new policy.
Responsibility for reimbursement will be split 50/50 between the paying and receiving company, for losses up to £415,000. Stakeholders are worried that this could substantially increase the burden on Britain’s payments firms, a crucial part of the country’s expansive and growth-driving financial services sector.
A representative from the FOS stated that the ombudsman has investigated thousands of cases in recent years, recovering over £150m for victims of such crimes.
The data reveals that in nearly half of all cases reviewed and closed last year, the ombudsman ordered Revolut to reimburse customers for their losses. However, separate data from law firms representing the fintech’s customers indicate that Revolut has continued to deny these claims.
Although the Payments Systems Regulator (PSR) is adamant about bringing in the new requirements, there are still conversations about how the policy could be improved.
Earlier this year, the Financial Times reported that the newly elected Labour government wanted to shoulder some responsibility onto Big Tech and social media firms.
The outcome remains uncertain, but with statistics like these emerging from Revolut, pressure is mounting as the 7 October deadline approaches. All eyes will be on Tulip Siddiq, City Minister and Economic Secretary on how she handles the ongoing back-and-forth between regulators and financial companies.