Revolut, the fintech powerhouse, is set to bolster its defense against fraudulent activity, particularly within the realm of cryptocurrency. The company has announced the expansion of its robust security mechanism, Revolut Pay, to its crypto customer base commencing in early 2025. This move is aimed at improving protection against fraudulent attacks, offering customers greater peace of mind when conducting transactions.
Currently, Revolut highlights a significant issue with limited transparency over card transactions and bank transfers involving crypto exchanges. This lack of insight potentially heightens the exposure to fraud risks due to the limited anti-scam measures in the card processing systems.
A year-long pilot program, where firms utilized Revolut Pay’s enhanced due diligence, direct API integration, and comprehensive control over the payment process, yielded promising results. According to a statement by Revolut, crypto customers experienced approximately 50% less fraudulent attempts.
The improvements encompass features such as know-your-customer (KYC) name matching, fraud warning screens, proof of crypto delivery, and even the provision for crypto merchants to receive transaction risk scores.
“Crypto is not immune to fraudulent activity, including identity theft, phishing scams, and even AI deep fakes,” said Alex Codina, General Manager for Merchant Payments at Revolut. “Now, crypto firms can integrate Revolut Pay as a payment method, allowing users to purchase crypto on their platforms in a secured manner.”
The process of integrating with third-party exchanges starts with KYC matching, ensuring that the individual purchasing via Revolut is the same individual who is KYC’d on the exchange’s end. If the names do not match, the transaction is promptly rejected.
Codina also expressed concerns about a growing array of investment scams where customers are deceived into performing transactions under false pretenses. Revolut aims to combat this by assessing the risk score of a transaction based on user information and transaction history, thus determining the likelihood of a transaction being part of a scam.
Striking a balance between user experience and safety is a priority for the fintech giant. Depending on the perceived risk of the transaction, safety measures could range from additional questions about the transaction to a brief consultation with a customer services manager.
Codina stated, “We have a robust model and framework where we can add some friction, depending on how risky we think the transaction is.”
With these enhancements, Revolut plans to provide its cryptographic customer base with a safer, more transparent, and efficient transaction process, reinforcing its commitment to ensuring customer safety in the rapidly evolving world of fintech.
