Global fintech Revolut has revealed that it has prevented millions from potential losses in the past three months, using its crypto-specific measures and security measures to combat criminal activity as malicious players continue to target the industry.
Revolut Avoids 13 Million Loss in Q3
Revolut, a UK-based neobank with more than 45 million customers worldwide, revealed that it has prevented more than $10 million in crypto losses in three months. From June 1 to September 1, the global fintech stopped nearly $13.5 million in potential counterfeiting on its premises.
The company has promised to prevent “crypto fraud at the source,” aiming to stop money from leaving customers’ accounts in its active form. Revolut expanded its digital goods services earlier this year by launching its own independent trading platform for UK users.
The bank’s application explained that it has developed crypto-specific security measures to protect its customers from becoming victims of fraud, which increases the chances of fraud detection. Revolut offers a Wealth Protection feature, which, once enabled, requires users to perform selfie verification for all crypto withdrawals.
Two biometric authentications, such as Face ID and fingerprint recognition, will also be required to authorize these transactions. In addition, the bank explained that when customers start transferring money in crypto, it is monitored by the algorithm of the application in real time.
By 2024, 92% of these tasks were completed without requiring additional information from the user. Meanwhile, the remaining 8% require further review to comply with anti-fraud and anti-money laundering laws. According to Revolut data, only 1 in 5,000 transfers lead to account closure after further review, less than 0.02%.
Investors Remain Influenced by Crypto Scams
Emil Urmanshin, Revolut’s Director of Crypto & New Bets, highlighted the company’s efforts to improve its transfer process to comply with regulations and prevent fraud related to digital assets:
Since we first launched crypto withdrawals and deposits, we’ve been tweaking our secret transfer process to improve things. We follow strict financial regulations to create a secure environment for all crypto transactions of our customers. This starts from the second they sign up – from monitoring patterns for suspicious activity to identity checks and using two-factor authentication.
Meanwhile, Woody Malouf, Head of Revolut’s Crime and Fraud Group, noted that fraudulent transactions are still a problem for their customers, including those using digital assets, and warned users about the different strategies used by malicious actors to target investors:
More than 45 million people trust Revolut with their money, and, by 2023, we estimate we’ve saved customers more than $590 million from potentially fraudulent transactions across the board. We mean it when we say we take security seriously – and that includes crypto. Be aware of all the celebrity endorsement scams, deepfakes, and AI-dupes that are circulating.
As reported by Bitcoinist, the industry saw a loss of 735 million dollars during the third quarter of 2024, an increase of 9.5% from the second quarter. The CertiK report revealed that phishing was the costliest form of fraud over the past three months, accounting for more than $343 million from July to October.
The report concluded that the industry remains vulnerable despite progress in user awareness and improved security measures, suggesting better education and more sophisticated measures to protect investors’ funds and industry confidence.
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