Britain’s Newest Bank Revolut Featured on BBC One’s Panorama Programme

Unauthorised transaction fraud happens when a scammer accesses your bank account without your permission, then takes money, buys goods, sets up loans, or uses an overdraft facility. The fraud can happen due to mobile phone theft, debit card theft, inadvertently sharing a password, PIN, or one-time passcode (OTP), or downloading software that gives a third-party access to a phone or computer.

Once the crime is reported to the bank, a customer is generally considered no longer liable for any further unauthorised payments from the account. A bank might decide not to refund money lost in this way if they suspect gross negligence by the customer, for example, giving someone else your login details or if you deliberately made a false claim.

Unauthorised transaction fraud is different from Authorised Push Payment Fraud.

Authorised Push Payment (APP) Fraud happens when scammers persuade their victims to transfer money using online or telephone banking. The victim might believe they are taking out an investment or sending money to a family member or friend in need. When faced with the bank’s security questions and fraud warnings, the scammers often convince the account holder to lie about what the payment is for or if someone has contacted them to send the money. These scams are ever-evolving, and new ‘opportunities’ appear regularly through text messaging or social media advertising.

Common APP scams include:

Romance Scams: Fraudsters lurk on dating apps and aren’t shy about befriending vulnerable people. Before long, they declare their undying love, despite never meeting in person, and then ask for money to cover travel or health ‘emergencies’. Once they have their money, they disappear.

Cryptocurrency Investment Scams: “If an investment seems too good to be true, it probably is” applies here. Online adverts for investments promising returns of more than 10% may not be genuine. Many scams start by collecting names and contact numbers, then a so-called ‘adviser’ gets in touch. Fake online trading accounts and demands for more money to release ‘profits’ are common features of these scams.

Employment Scams: A job advertised on a recruitment site or a personalised WhatsApp message might be enough to catch a jobseeker’s attention. The scammer aims to collect personal details and asks for money upfront to cover registration fees, equipment or to access employment tasks. Usually, the vacancy never existed, and victims’ money has been sent straight to the scammers.

In most APP fraud cases, the scammers quickly move funds on to another bank account in their control, often overseas, making it very difficult to trace or recover.

The Faster Payments System allows real-time payments for UK banking customers, but despite its speed and convenience, it has contributed to the rise in APP fraud over recent years. Payments are quick and easy, and fraud victims can be caught out if they don’t take enough time to stop and think when making payments from their accounts.
Banks have a duty of care to protect their customers’ money and should be monitoring accounts, ready to delay or block payments they believe are suspicious or out of character and allow time for further investigation.

There are several red flags organisations like Revolut should be looking out for:

• A change in the value of transactions
• Multiple transfers to one payee, often increasing in value
• Payments to new payees, especially if they are overseas

The BBC Panorama programme found that Revolut customers had made 9,793 complaints against it in the past year alone, over twice the number against its main rival Monzo.

The Financial Ombudsman Service (FOS), a government backed organisation set up to settle disputes between financial institutions and their customers, received 3,500 complaints about Revolut in 2023, more than any other similar company.

While Revolut reduced the value and volume of scams between 2022 and 2023, including the introduction of a new “biometric identification feature”, its new banking licence could be at risk if it does not demonstrate sufficient security measures.

Sarah Spruce, Legal Director at TLW Solicitors, says:

“Losing money through a fraud or scam can be devastating, particularly if you believe it wasn’t your fault. Revolut has considerably improved its operations in recent years but, as with even the long-established high street banks, people still lose money to scams.

“A new APP fraud reimbursement model was implemented on 7th October 2024 and aims to protect people from financial loss better and refund money more quickly. However, if you lost money before that date or your bank is unwilling to refund you, or if your financial loss was through unauthorised transaction fraud, other routes are still available for compensation.

“Don’t feel embarrassed that you were tricked into sending money to a scammer – this type of fraud is commonplace and can affect even the most money-savvy people. Get in touch with the specialist scam team at TLW Solicitors to discuss your options and explore whether you are eligible to make a ‘no-win, no-fee’ refund claim.”