Revolut’s Crypto Security Measures Prevents $13.5 Million In Potential Losses

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As a seasoned crypto investor with years of experience navigating the digital asset landscape, I find the recent efforts by Revolut to prevent fraud and secure their customers’ funds truly commendable. With over 45 million users trusting them with their money, it’s reassuring to see a fintech company prioritizing security while also expanding its services.

In the past three months, financial technology company Revolut disclosed that their rigorous cryptocurrency safeguards and fraud detection systems helped avert significant financial losses by thwarting illegal activities in the ever-evolving crypto market, where unscrupulous individuals persistently attempt to exploit the industry.

Revolut Prevents $13 Million Losses In Q3

In simple terms, Revolut – a UK-based digital bank serving more than 45 million customers globally – disclosed that it successfully thwarted over $10 million in cryptocurrency losses during the three-month period from June 1 to September 1. This digital financial service provider managed to halt approximately $13.5 million in suspected fraudulent transactions on its platform.

The business has committed to stopping “cryptocurrency scams at their origin,” focusing on keeping funds within customers’ accounts using a forward-thinking strategy. Earlier in the year, Revolut broadened its digital asset offerings by introducing a separate trading platform exclusively for British users.

The banking app clarified that they’ve fortified their anti-fraud measures specifically for cryptocurrencies, making it harder for customers to be tricked and easier for fraudulent activity to be spotted. Revolut provides a Wealth Protection feature; once activated, users must verify their identity by taking a selfie before every crypto withdrawal can be processed.

As an analyst, I’d rephrase the statement as follows: In my analysis, both facial recognition (similar to Face ID) and fingerprint scanning will be necessitated for transaction approvals. Notably, when customers initiate a cryptocurrency transfer, the app’s real-time algorithm keeps a vigilant eye on these transactions.

2024 saw a vast majority (92%) of these transactions being finalized without needing extra information from users. Conversely, just 8% necessitated further reviews due to adherence with fraud prevention and anti-money laundering rules. As per Revolut’s records, only about one transaction out of every 5,000 undergoes a detailed review before account closure, which is less than 0.02%.

Investors Remain Affected By Crypto Fraud

As per Emil Urmanshin, who holds the position of Director of Crypto & New Bets at Revolut, emphasized that the company is making strides to refine its money transfer system in accordance with regulations and to combat any instances of fraud associated with digital assets.

Ever since we initiated crypto withdrawals and deposits, we’ve been steadily refining our transfer process under the hood to enhance efficiency. We adhere to stringent financial regulations to establish a secure atmosphere for all cryptocurrency transactions on our platform. This commitment begins from the moment a user signs up, encompassing monitoring of potential suspicious activities, identity verifications, and implementation of two-factor authentication.

Simultaneously, Woody Malouf, Revolut’s Chief of Financial Crime and Fraud (Group Head), pointed out that fraudulent transactions continue to be an issue for their customers, even those dealing with digital assets. He cautioned users about the various strategies employed by unscrupulous actors to exploit investors.

Approximately 45 million individuals rely on Revolut for their financial management, and in 2023 alone, we’re projecting that we prevented more than $590 million from being lost to potentially fraudulent transactions. We truly prioritize security, and this commitment extends to our cryptocurrency services as well. Aware of the prevalence of celebrity impersonation schemes, deepfakes, and AI-generated deceptions, we remain vigilant in safeguarding our users’ funds.

According to Bitcoinist‘s latest findings, the digital currency sector incurred approximately $735 million in losses during Q3 of 2024, marking a 9.5% rise compared to the previous quarter. As per CertiK’s report, phishing scams accounted for the highest financial toll over the past three months, with an estimated $343 million being swindled from July to October.

The findings indicate that the industry is still at risk, even with advancements in user education and enhanced safety protocols. This points towards the need for increased educational initiatives and advanced safeguards to secure investor assets and maintain confidence within the field.

Revolut’s Crypto Security Measures Prevents $13.5 Million In Potential Losses

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2024-10-09 13:12