Global fintech Revolut revealed it prevented millions in potential losses in the last three months, using its crypto-specific measures and transaction monitoring to tackle criminal activity as malicious actors continue to target the industry.
Revolut Prevents $13 Million Losses In Q3
Revolut, the UK-based neobank with over 45 million customers worldwide, revealed it had prevented losses of over $10 million worth of crypto in three months. From June 1 to September 1, the global fintech stopped around $13.5 million in potential fraudulent transactions from its platform.
The company has pledged to prevent “crypto fraud at source,” aiming to stop funds from ever leaving customers’ accounts with its proactive approach. Revolut expanded its digital assets services earlier this year by launching its standalone trading platform for UK users.
The banking app explained that it enhanced its crypto-specific security measures to protect its customers from falling victim to fraud, which increased the potential for fraud detection. Revolut offers a Wealth Protection feature that, once enabled, requires users to do a selfie verification for every crypto withdrawal.
Two biometric assessments, like Face ID and fingerprint recognition, will also be required to approve these transactions. Moreover, the bank detailed that when customers initiate a crypto transfer, it is monitored by the app’s algorithm in real-time.
In 2024, 92% of these transactions were completed without requiring additional information from the user. Meanwhile, the remaining 8% required additional reviews to comply with fraud prevention and anti-money laundering regulations. Per Revolut’s data, only 1 in 5,000 transfers leads to account closure after further review, less than 0.02%.
Investors Remain Affected By Crypto Fraud
Emil Urmanshin, Revolut’s Director of Crypto & New Bets, highlighted the company’s efforts to improve its transfer process to follow regulations and prevent digital assets-related fraud:
Since first launching crypto withdrawals and deposits, we’ve been constantly fine-tuning our transfer process behind the scenes to improve things. We follow strict financial regulations to create a secure environment for all of our customers’ crypto transactions. This starts from the second they sign up — from monitoring patterns in suspicious activity to identity checks and using two-factor authentication.
Meanwhile, Woody Malouf, Revolut’s Group Head of Financial Crime and Fraud, noted that fraudulent transactions remain a problem for their customers, including those using digital assets, and warned users of the different tactics used by malicious actors to target investors:
More than 45 million people trust Revolut with their money and, in 2023, we estimate that we saved customers over $590 million in potentially fraudulent transactions across the board. We mean it when we say we take security seriously — and that absolutely includes crypto. Mindful of all of the celebrity endorsement scams, deepfakes, and AI-dupes circulating.
As reported by Bitcoinist, the industry saw $735 million in losses during 2024’s third quarter, a 9.5% increase from the second quarter. CertiK’s report revealed that phishing was the costliest type of scam during the past three months, sweeping over $343 million from July to October.
The report concluded that the industry remains vulnerable despite the progress in user awareness and improved security measures, suggesting better education and more sophisticated measures to protect investors’ funds and the trust in the sector.
Total crypto market capitalization is at $2.12 trillion in the weekly chart. Source: TOTAL on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
Source: https://bitcoinist.com/revoluts-crypto-security-measures-prevents-13-5-million-in-potential-losses/