Despite misinformation, Monzo and Revolut don't appear to be going bust because of coronavirus

Despite misinformation, Monzo and Revolut don't appear to be going bust because of coronavirus

There’s almost too many rumours to count flying around messaging platforms at the moment.

Some – like the Wembley lasagne – are clearly tongue-in-cheek and provide some light relief.

Others can be dangerous.

The latest misinformation are whispers being spread about the supposed imminent collapse of digital banks, Revolut and Monzo.

People are claiming they’ve heard that staff aren’t being paid and that customers should withdraw finances.

As “evidence” they’re posting dodgy screenshots via trusted sources like "anonymous person’s friend’s dad".

For the avoidance of any doubt: there is no evidence that Monzo is going bust. Ditto for Revolut.

And for Monzo customers, money in your Monzo account is fully protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).

Spreading false information about the precarity of banks is particularly dangerous; it can lead to what’s called a “bank run” which actually can cause more problems as a glut of panicked customers try to withdraw cash.

If too many people withdraw their funds at once, ironically they can create a self-fulfilling prophecy that does place the bank – and your money – in trouble.

Both Monzo and Revolut have been debunking the false rumours online.

Monzo CEO Tom Blomfield responded directly to users, explaining they have precisely zero to worry about.

A year ago, Monzo was valued at £2bn.

Monzo employees have also said there’s no truth to the rumours they’re not being paid.

As for Revolut, they’ve called the rumours “fake news”.

Although consumers should be aware that as Revolut is not a UK-based bank, the same FSCS protections do not apply if anything were to go wrong.

But for now, there is no evidence to suggest it might.

The incident demonstrates just how dangerous fake news is when people’s livelihoods are caught up in it.

And once panic starts, it’s very hard to quell it.

See: stockpiling.

So please: cross-reference any worrying information you hear, make informed decisions and do not take screenshots at face value.

Even if Brian from next door says they’re true.

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