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Fintech Giant Revolut Plans to Enhance Crypto Security with Revolut Pay
Revolut, a leading fintech company, is set to extend its battle-tested security wrapper, Revolut Pay, to its crypto customers from the start of 2025, aiming to improve protection against fraudulent attacks.
Currently, Revolut says there is limited visibility into card transactions and bank transfers made by its crypto customers with exchanges, potentially exposing them to higher levels of fraud due to card mechanisms having limited anti-scam protections.
A Pilot Program Shows 50% Reduction in Fraud Attempts
A 12-month pilot of firms using Revolut Pay’s enhanced due diligence, direct API integration, and end-to-end control over the payment process showed crypto customers were exposed to about 50% fewer attempts to defraud them, Revolut said in a statement.
Enhanced Features to Combat Fraud
These enhancements include know-your-customer (KYC) name matching, fraud warning screens, proof of crypto delivery, and the ability for crypto merchants to receive transaction risk scores.
Fighting Fraud in the Crypto Space
Crypto has more than its fair share of fraudulent activity and scams, whether that involves identity theft, phishing scams, and even the involvement of AI deep fakes, and so on.
How Revolut Pay Works
Under the hood, the integration with third-party exchanges or on-ramps starts with KYC matching, so validating that the person who is buying on Revolut’s side is the same person who is KYC’d on the exchange’s side.
If those names don’t match, the transaction is rejected. In the card world, this would be the equivalent of a stolen card or something like that, said Alex Codina, general manager for merchant payments at Revolut.
Assessing Transaction Risk
Beyond that, firms are in a running battle to combat a sophisticated array of investment scams, whereby customers are duped into thinking they need to perform some transaction or other to qualify for a fictitious reward of some kind, he added.
These are the hardest ones to deal with, said Codina. Basically, what we do is assess the risk score of the transaction based on information on our users, like if they have traded crypto in the past or not with Revolut, with a third party, and assess the probability of that transaction being part of an investment scam.
Striking a Balance between User Experience and Safety
Obviously, a balance has to be struck when it comes to user experience and safety, Codina said. The safety measures put in place by Revolut could be a question or two about the transaction, or in some cases, the customer could be referred to a customer services manager to briefly chat about the transaction.
We have a pretty robust model and framework where we can add some friction, depending on how risky we think the transaction is, he said.
Conclusion
Revolut’s decision to extend its security wrapper, Revolut Pay, to its crypto customers is a significant step in the right direction, demonstrating its commitment to protecting its customers from fraudulent activities.
FAQs
- Q: What is Revolut Pay?
- Q: What are the key features of Revolut Pay?
- Q: How does Revolut Pay combat fraud in the crypto space?
- Q: What is the impact of Revolut Pay on the crypto space?
A: Revolut Pay is a security wrapper that uses enhanced due diligence, direct API integration, and end-to-end control over the payment process to protect against fraudulent activities.
A: The key features of Revolut Pay include know-your-customer (KYC) name matching, fraud warning screens, proof of crypto delivery, and the ability for crypto merchants to receive transaction risk scores.
A: Revolut Pay uses a combination of techniques, including KYC matching, transaction risk assessment, and friction-based user experience to combat fraud in the crypto space.
A: Revolut Pay is expected to have a significant impact on the crypto space, reducing the risk of fraudulent activities and providing a safer and more secure way for customers to buy and sell cryptocurrencies.
