Revolut Thwarts Fraudulent Crypto Transactions
On Tuesday, fintech company Revolut announced its success in preventing nearly $13.5 million in potentially fraudulent cryptocurrency transactions from June to September. This achievement comes as Revolut continues to solidify its presence in the crypto market with the launch of its independent crypto exchange in the UK earlier this year. The company has emphasized its commitment to safeguarding customer funds and ensuring they remain secure within user accounts.
Rising Risks in the Crypto Landscape
According to Immunefi, the third quarter of 2024 saw crypto hackers stealing an estimated $409 million, underlining the persistent risks associated with both centralized and decentralized platforms. The industry has faced scrutiny as a number of prominent exchanges and protocols have experienced significant security breaches, prompting a heightened focus on fraud prevention measures.
Advanced Fraud Prevention Mechanisms
Revolut employs advanced algorithms to actively monitor transactions in real time whenever users initiate a crypto transfer. The system enables swift processing of legitimate transfers, with an impressive 92% successfully completed in 2024 without requiring additional user input. However, for the remaining 8% of transactions, further verification is conducted to adhere to fraud prevention and anti-money laundering regulations. This stringent process results in account terminations occurring in fewer than 0.02% of transactions, equating to 1 in every 5,000 cases.
Enhanced Security with Biometric Features
In addition to its monitoring systems, Revolut has introduced its Wealth Protection feature, which offers optional biometric security measures for crypto withdrawals. When this feature is activated, users must complete a selfie verification to authorize withdrawals, adding a second layer of biometric authentication beyond the initial know your customer (KYC) selfie. This multifaceted approach aims to bolster security for crypto traders.
Commitment to Regulatory Compliance
Emil Urmanshin, Revolut’s Director of Crypto & New Bets, stated, “We follow strict financial regulations to create a secure environment for all of our customers’ crypto transactions.” He elaborated on the proactive measures taken, which include monitoring suspicious activity patterns, conducting identity checks, and implementing two-factor authentication to enhance user security from the moment they sign up.
New Developments: Launching a Stablecoin
In a strategic move to further embed itself in the cryptocurrency sector, Revolut is reportedly preparing to launch its own stablecoin. This initiative positions the London-based company to compete with major industry players such as PayPal, Ripple, and BitGo, marking a significant step in Revolut’s ongoing expansion and innovation within the crypto market.