Revolut blocks $13.5 million in potential crypto fraud

Revolut, the crypto-friendly neobank, has reported preventing up to $13.5 million in potentially fraudulent crypto transactions between June 1 and September 1, 2024.

The company shared this update on October 7, highlighting its recent efforts to enhance security and safeguard customers from scams in the cryptocurrency space.

According to Revolut’s announcement, its proactive measures have significantly improved its ability to detect and prevent fraudulent transfers.

Woody Malouf, Revolut's head of financial crime and fraud, stated that the company's security enhancements helped save customers over $590 million in potential fraud cases in 2023.

Malouf explained that these fraud cases include a variety of schemes such as celebrity endorsement scams, deepfakes, and artificial intelligence-generated scams.

“We mean it when we say we take security seriously — and that absolutely includes crypto,” Malouf emphasized.

Revolut’s security features include monitoring suspicious activity patterns, two-factor authentication, and 24/7 support to assist customers with fraud prevention.

Revolut’s crypto anti-fraud mechanism works by monitoring transactions in real time.

If any suspicious activity is detected, users receive in-app warnings.

The system efficiently handles most transactions, with 92% completed without any additional information required from customers.

For the remaining 8%, additional reviews are conducted to ensure compliance with anti-money laundering regulations and other safeguards.

Emil Urmanshin, director of crypto and new bets at Revolut, noted that the platform has continuously refined its processes since launching crypto withdrawals and deposits.

"We follow strict financial regulations to create a secure environment for all of our customers' crypto transactions," he said.

In addition, Revolut provides an optional “Wealth Protection” feature that adds a layer of biometric security, requiring selfie verification for certain withdrawals.

This feature aims to further protect users from fraud.

Despite these advancements, Revolut has faced criticism for not reimbursing some customers affected by scams.

The company has also called on Meta to share responsibility for compensating fraud victims, as 62% of reported scams originated from Meta’s platforms.