Dispute over Revolut fraud payout leaves 1,000 victims in limbo

ONE thousand fraud victims could be stuck in limbo because of an ongoing row between Revolut and the Financial Ombudsman Service.

The Telegraph understands that victims of Authorised Push Payment fraud have been left out of pocket for months as Revolut is pushing back on the adjudicator’s recommendations to refund them in some cases.

This has prompted the Financial Ombudsman (FOS) to put a number of APP fraud complaints involving Revolut on hold until they can find a resolution with the challenger bank.

CEL Solicitors, a legal firm, said it has 1,000 clients whose complaints have been delayed because of the dispute. In total these Revolut customers are fighting to reclaim £34m in fraud losses. It comes as data reveal a recent surge in Revolut customers complaining to the FOS after falling victim to scams.

Jason Costain, of CEL Solicitors, said: “We’ve been getting emails from the FOS for a while saying they can’t make decisions on our cases because of highlevel discussions with Revolut.” Revolut strongly denied any claims that it does not abide by the same regulatory standards as any “high street bank” in combating fraud.

Mr Costain said the firm noted a “distinct slowdown” in the FOS making decisions on Revolut APP fraud cases in October 2023 and began receiving emails referencing “Revolut pushback” from FOS investigators in November.

The emails, shared with The Telegraph, show that Revolut has hit back in some cases where the FOS recommended a refund for the scam victim.

The FOS told The Telegraph it is in contact with Revolut.

A spokesman for Revolut said: “As a UK Payment Service Provider, Revolut abides by the same regulatory standards as any high street bank in combating fraud. We strongly refute any suggestion that we do not, nor wish to, abide by these standards.

“Revolut takes fraud and the industry-wide risk of customers being coerced by organised criminals, incredibly seriously. We have robust protections in place for our millions of customers and analyse over half a billion transactions a month.”