Revolut to Strengthen Crypto Fraud Protections With Added Security, Risk Scores

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What to know:

  • Revolut plans to extend its fraud-prevention product, Revolut Pay, to crypto customers from the start of 2025.
  • Revolut Pay includes know-your-customer (KYC) name matching, fraud warning screens, proof of crypto delivery and the ability for crypto merchants to receive transaction risk scores.
  • A 12-month pilot of firms using Revolut Pay showed crypto customers were exposed to about 50% fewer attempts to defraud them.

As a seasoned analyst with years of experience in the ever-evolving world of fintech and cryptocurrency, I find Revolut’s decision to extend its fraud-prevention product, Revolut Pay, to crypto customers by 2025, a move that is both timely and prudent. In my career, I’ve seen more than a few instances where the intersection of technology and human greed can lead to some rather unsavory outcomes, and the crypto space seems to have more than its fair share of such occurrences.

As a forward-thinking crypto investor, I’m excited to share that by early 2025, the financial technology titan, Revolut, intends to fortify our crypto journey with an enhanced layer of security. This battle-hardened shield, known as Revolut Pay, will be extended to us, crypto customers, to bolster our defenses against potential fraudulent assaults, ensuring a safer and more secure investment experience.

Currently, Revolut mentions that their crypto users might have a restricted view of the card transactions and bank transfers they conduct with cryptocurrency exchanges. This could lead to increased vulnerability to fraud since the security measures against fraud in card transactions are relatively scarce.

During a 12-month trial, companies employing Revolut Pay’s advanced verification, direct API connection, and complete management of the payment system demonstrated a significant reduction in fraudulent activities towards their crypto customers, with approximately half as many attempts to defraud them, according to a statement by Revolut.

Among these improvements are features such as Know Your Customer (KYC) name verification, alerts for potential fraud, confirmation of cryptocurrency transfers, and a system that allows crypto vendors to assess the risk associated with each transaction.

Digital currencies like Cryptocurrency aren’t immune to misconduct and deceitful practices. These can range from identity theft, email phishing schemes, to more advanced tactics such as AI-generated deepfakes and the like.

In the world of cryptocurrency, Alex Codina (General Manager for Merchant Payments at Revolut) mentioned a problem involving fraudulent transactions. Now, crypto businesses like exchanges or onboarding platforms can incorporate Revolut Pay as a payment option. This integration allows users to purchase cryptocurrencies more securely directly from those checkout points.

Match your customer

Behind the scenes, the process of linking with external exchanges or ramps begins by ensuring the individual purchasing through Revolut matches the one who’s already verified (KYC) on the partner exchange.

In case the given names don’t correspond with the transaction details, it will be declined. This is similar to a situation where a credit card has been stolen.” – Codina explained.

Furthermore, companies are constantly engaged in a struggle to counteract complex investment schemes, in which clients are tricked into believing they must complete certain transactions to gain access to a non-existent prize or benefit, as he pointed out.

According to Codina, these cases are particularly challenging. Essentially, their approach involves evaluating the risk level of a transaction by considering factors about the user, such as whether they’ve traded cryptocurrency before, either with Revolut or another platform, and determining the likelihood that the transaction is linked to an investment fraud scheme.

As an analyst, I recognize the importance of striking a balance between user experience and security, as highlighted by Codina. To ensure both aspects are addressed effectively, Revolut’s safety measures might involve a quick query or two regarding transactions, or in certain situations, directing customers to have a brief conversation with a customer service manager to clarify any questions related to the transaction at hand.

As a forward-thinking crypto investor, I employ a strong system that allows me to introduce some resistance in transactions based on their perceived level of risk. This way, I ensure a more secure and controlled investment environment.

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2024-12-17 11:05