Bitrabo Editorial
Revolut, a global fintech company, disclosed that it successfully thwarted potential losses worth millions over the past three months by implementing targeted measures to combat criminal activities, as the industry faces ongoing threats.
Revolut Averts $13 Million in Potential Losses in Q3
The UK-based neobank, with a customer base exceeding 45 million worldwide, announced that it avoided losses exceeding $10 million in crypto within a three-month period. From June 1 to September 1, the company was able to prevent approximately $13.5 million in possible fraudulent transactions on its platform.
Revolut aims to eliminate “crypto fraud at source,” focusing on preventing funds from being lost by taking a proactive stance. Earlier this year, the firm enhanced its digital assets offerings by launching a dedicated trading platform for users in the UK.
To safeguard its users against fraud, Revolut upgraded its crypto security features, significantly increasing the likelihood of detecting fraudulent activities. The app includes a Wealth Protection feature that requires users to verify their identity through a selfie for every cryptocurrency withdrawal.
In addition to the selfie verification, two biometric checks, such as Face ID and fingerprint scans, must be completed to authorize these transactions. Furthermore, the app’s algorithms monitor crypto transfers in real-time as customers initiate them.
In 2024, 92% of transactions were processed without needing extra user input. The remaining 8% underwent additional checks to ensure compliance with fraud prevention and anti-money laundering laws. According to Revolut’s statistics, only 1 in 5,000 transactions ends in an account being closed following review, which is less than 0.02%.
Investors Still Grappling with Crypto Fraud
Emil Urmanshin, Revolut’s Director of Crypto & New Ventures, emphasized the firm’s commitment to enhancing its transfer process in line with regulations to fend off fraud related to digital assets:
Since we launched the capability for crypto withdrawals and deposits, we’ve been iteratively refining our transfer process to enhance efficiency. We adhere to stringent financial regulations to ensure a secure environment for every crypto transaction. This vigilance begins at the moment of sign-up, through monitoring for suspicious activities and stringent identity verification, alongside two-factor authentication.
Woody Malouf, the Group Head of Financial Crime and Fraud at Revolut, remarked that fraudulent transactions continue to pose challenges for customers, particularly those engaging with digital assets, and cautioned users about various strategies used by malicious entities:
Trust is crucial to the over 45 million customers who rely on Revolut for their finances. In 2023 alone, we estimate that we prevented more than $590 million in potentially fraudulent transactions across our services. Our commitment to security is serious — this philosophy extends to crypto as well. We remain vigilant against scams such as celebrity endorsements, deepfakes, and AI-driven frauds.
According to Bitrabo, the industry witnessed $735 million in losses during the third quarter of 2024, marking a 9.5% increase compared to the previous quarter. CertiK’s report highlighted that phishing scams had the most substantial financial impact during these months, resulting in losses exceeding $343 million from July to October.
The report concluded that despite improvements in user awareness and security, the industry still faces vulnerabilities, underscoring the need for enhanced education and advanced protections to secure investor funds and maintain confidence in the industry.