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Highlights
- Revolut to introduce enhanced fraud protection for crypto customers starting in 2025.
- 12-month pilot reveals a 50% reduction in fraud attempts with new security features.
- New features include KYC name matching, risk scores, and fraud warning screens.
Revolut is stepping up its commitment to enhancing fraud protection for cryptocurrency users by extending its security measures to crypto transactions. Starting in 2025, Revolut Pay will offer improved safeguards, including KYC name matching and risk scores, to help protect customers from fraudulent activities. This move aims to create a safer environment for cryptocurrency exchanges and users alike.
Revolut Enhances Crypto Fraud Protection
Revolut is set to expand its fraud protection features for cryptocurrency transactions starting in 2025, aiming to provide enhanced security for crypto customers. The fintech company intends to extend its security platform, Revolut Pay, to its crypto services, offering an improved layer of protection for transactions involving crypto exchanges and merchants. The move comes in response to growing concerns over the vulnerabilities crypto customers face in an environment plagued by fraud.
Tackling Fraud in the Crypto Space
One of the significant challenges in the crypto market is the high level of fraudulent activity, including identity theft, phishing scams, and increasingly sophisticated fraud tactics, such as AI deep fakes. Revolut's new measures aim to mitigate these risks by enhancing visibility and control over crypto transactions. The company’s enhanced security system includes KYC (know-your-customer) name matching, which ensures the identity of the buyer on Revolut aligns with the one on the exchange. If there’s a mismatch, the transaction is automatically rejected, reducing the likelihood of fraud, similar to how stolen card transactions are handled in the traditional banking world.
Pilot Program Results and Security Enhancements
A 12-month pilot program demonstrated the effectiveness of Revolut’s new fraud prevention features. The integration of Revolut Pay into crypto payment processes resulted in a significant decrease in fraud attempts—by around 50%. The pilot highlighted that the direct API integration and end-to-end control over payments provided a much safer environment for crypto transactions. Additional features, such as fraud warning screens and transaction risk scores, further protect customers by allowing crypto merchants to assess transaction safety before processing.
Combating Investment Scams with Risk Assessment
Revolut’s new security system is designed to combat investment scams, one of the most challenging threats in the crypto space. These scams often deceive customers into believing they need to perform a transaction to qualify for a fake reward. Revolut's system assesses transaction risk scores based on various factors, including past crypto trading history with Revolut and third-party exchanges. By evaluating the likelihood of a transaction being tied to a scam, Revolut can identify potential fraud before it occurs.
Balancing Security with User Experience
While security is a priority, Revolut emphasizes the importance of maintaining a smooth customer experience. The company’s fraud prevention system strikes a balance by incorporating safety measures that do not disrupt the user’s experience. In some cases, customers may be asked a few questions or referred to a customer service manager to verify the transaction. This ensures that while the system remains effective in combating fraud, it does not hinder the ease of transactions for legitimate users.
