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Crypto-friendly neobank Revolut said it has prevented millions of dollars in potential customer losses from fraudulent cryptocurrency transfers over the past three months.
On October 7, Revolut said it had blocked "potentially fraudulent cryptocurrency transfers" worth up to $13.5 million between June 1 and September 1, 2024, according to an announcement sent to Cointelegraph.
"The company's proactive approach has led it to significantly strengthen its crypto-specific security measures recently, resulting in an increase in the number of potential frauds prevented," Revolut said.
Revolut claims to have saved customers more than $590 million from potential fraud in 2023
Revolut estimates that the company saved customers more than $590 million from potentially fraudulent transactions in 2023, according to Woody Maloof, the company's head of financial crime and fraud.
Maloof clarified that such potential cases of fraud include schemes such as celebrity endorsement scams, deepfakes, and AI-generated scams.
"That's what we mean when we say we're serious about security — and that absolutely includes cryptocurrency," the executive said. He clarified that Revolut's security measures include monitoring patterns of suspicious activity, two-factor authentication, and "award-winning support" available around the clock, seven days a week.
How exactly does Revolut's anti-crypto fraud tool work?
Revolut's anti-fraud mechanism aims to protect investors by alerting users to potentially suspicious transactions.
When customers initiate a cryptocurrency transfer, Revolut's algorithms track the transfer in real-time and issue in-app alerts if the system detects suspicious activity.
"The Revolut system is designed to efficiently process genuine transfers," the company said, adding that the platform completed 92% of all cryptocurrency transactions without requiring any additional information from the user.
"For the remaining 8%, additional checks were required to ensure compliance with fraud prevention, anti-money laundering regulations and other security measures," Revolut said, adding:
"Only 1 in 5,000 transfers result in account closure after further verification – that's less than 0.02%."
Emil Urmanshin, director of cryptocurrencies and new rates at Revolut, said that the platform has been "constantly tweaking" the transfer process since the launch of withdrawals and deposits in cryptocurrency. He stated:
"We follow strict financial regulations to create a secure environment for all of our customers' cryptocurrency transactions. This starts from the moment of registration – from monitoring patterns of suspicious activity to identity verification and the use of two-factor authentication."
Revolut also provides an extra layer of biometric protection with Wealth Protection. By default, this feature is disabled, so users can only withdraw funds after confirming the selfie.
On the subject: $46 million
stolen due to cryptocurrency scams in September Cointelegraph reached out to Revolut for comment on the process of identifying suspicious cryptocurrency activity on its platform, but did not receive a response from the publication.
Criticism of Meta's fraud prevention
efforts Revolut's latest update on anti-fraud efforts in the cryptocurrency space comes shortly after the company approached Mark Zuckerberg's Meta to share the costs of compensating fraud victims and criticized its fraud prevention efforts.
The neobank claims that meta platforms "remain the main source of all frauds" reported by Revolut in the first quarter of 2024, accounting for 62%.
In September, Bloomberg reported that Revolut had come under fire in 2024 due to a surge in fraud complaints, with some investors suffering losses of up to $14,000 due to fraud through their Revolut accounts.
In April 2024, The Guardian also reported on an investor who lost £40,000 ($52,300) on Revolut due to fraud, with Revolut rejecting the refund.
On October 7, Revolut said it had blocked "potentially fraudulent cryptocurrency transfers" worth up to $13.5 million between June 1 and September 1, 2024, according to an announcement sent to Cointelegraph.
"The company's proactive approach has led it to significantly strengthen its crypto-specific security measures recently, resulting in an increase in the number of potential frauds prevented," Revolut said.
Revolut claims to have saved customers more than $590 million from potential fraud in 2023
Revolut estimates that the company saved customers more than $590 million from potentially fraudulent transactions in 2023, according to Woody Maloof, the company's head of financial crime and fraud.
Maloof clarified that such potential cases of fraud include schemes such as celebrity endorsement scams, deepfakes, and AI-generated scams.
"That's what we mean when we say we're serious about security — and that absolutely includes cryptocurrency," the executive said. He clarified that Revolut's security measures include monitoring patterns of suspicious activity, two-factor authentication, and "award-winning support" available around the clock, seven days a week.
How exactly does Revolut's anti-crypto fraud tool work?
Revolut's anti-fraud mechanism aims to protect investors by alerting users to potentially suspicious transactions.
When customers initiate a cryptocurrency transfer, Revolut's algorithms track the transfer in real-time and issue in-app alerts if the system detects suspicious activity.
"The Revolut system is designed to efficiently process genuine transfers," the company said, adding that the platform completed 92% of all cryptocurrency transactions without requiring any additional information from the user.
"For the remaining 8%, additional checks were required to ensure compliance with fraud prevention, anti-money laundering regulations and other security measures," Revolut said, adding:
"Only 1 in 5,000 transfers result in account closure after further verification – that's less than 0.02%."
Emil Urmanshin, director of cryptocurrencies and new rates at Revolut, said that the platform has been "constantly tweaking" the transfer process since the launch of withdrawals and deposits in cryptocurrency. He stated:
"We follow strict financial regulations to create a secure environment for all of our customers' cryptocurrency transactions. This starts from the moment of registration – from monitoring patterns of suspicious activity to identity verification and the use of two-factor authentication."
Revolut also provides an extra layer of biometric protection with Wealth Protection. By default, this feature is disabled, so users can only withdraw funds after confirming the selfie.
On the subject: $46 million
stolen due to cryptocurrency scams in September Cointelegraph reached out to Revolut for comment on the process of identifying suspicious cryptocurrency activity on its platform, but did not receive a response from the publication.
Criticism of Meta's fraud prevention
efforts Revolut's latest update on anti-fraud efforts in the cryptocurrency space comes shortly after the company approached Mark Zuckerberg's Meta to share the costs of compensating fraud victims and criticized its fraud prevention efforts.
The neobank claims that meta platforms "remain the main source of all frauds" reported by Revolut in the first quarter of 2024, accounting for 62%.
In September, Bloomberg reported that Revolut had come under fire in 2024 due to a surge in fraud complaints, with some investors suffering losses of up to $14,000 due to fraud through their Revolut accounts.
In April 2024, The Guardian also reported on an investor who lost £40,000 ($52,300) on Revolut due to fraud, with Revolut rejecting the refund.
