Revolut Enhances Crypto Security with Revolut Pay by 2025

Revolut Expands Security for Cryptocurrency Customers

Revolut, a leading fintech company, has announced plans to expand its security platform, Revolut Pay, to include its cryptocurrency customers by 2025. This strategic move is designed to enhance protection against fraudulent activities, a growing concern in the crypto sector.

Understanding the Current Risks

Currently, Revolut notes that there is a lack of transparency in card transactions and bank transfers made by cryptocurrency users with exchanges. This limited visibility increases vulnerabilities to fraud, as traditional card mechanisms offer minimal anti-fraud protections, a situation that Revolut aims to address.

Success of Pilot Programs

A year-long pilot program demonstrated the effectiveness of Revolut Pay's enhancements. By implementing advanced due diligence, direct API integration, and increased control over the payment process, Revolut was able to reduce fraud attempts for crypto customers by approximately 50%.

Key Security Enhancements

• KYC Name Matching: Ensures that the buyer on Revolut’s side matches the individual verified on the exchange.
• Fraud Warning Alerts: Alerts users to potential fraudulent attempts during transactions.
• Proof of Crypto Delivery: Provides verification that the crypto has been delivered as promised.
• Transaction Risk Scores: Allows crypto merchants to assess the risk level of transactions.

The Threat of Fraud in the Crypto Industry

The crypto industry is beset by various fraudulent activities, including identity theft, phishing scams, and AI deep fakes. Alex Codina, Revolut's general manager for merchant payments, acknowledged the persistent fraud concerns within the crypto space. He noted that both exchanges and on-rampers can integrate Revolut Pay as a payment method, significantly increasing user security when purchasing cryptocurrencies.

Innovative Fraud Prevention Strategies

Revolut's integration process begins with KYC name matching. If the names do not align, the transaction is rejected, similar to what would occur in a stolen card scenario. Codina highlighted the challenges companies face in combating investment scams, where fraudsters mislead customers into transactions with the promise of fictitious rewards.

Assessment of Transaction Risks

Revolut evaluates transaction risk scores by analyzing user information, including previous cryptocurrency trading history. This analysis allows Revolut to determine the likelihood that a transaction may relate to an investment scam.

Balancing Security and User Experience

Codina stressed the importance of maintaining a balance between user experience and security. In certain situations, Revolut may pose additional questions about a transaction or refer the customer to a service manager for further discussion if risks are perceived. Through this comprehensive framework, Revolut aims to introduce necessary friction in transactions based on assessed risk levels, ensuring a safer trading environment for all users.

Conclusion

As Revolut prepares to launch its enhanced security measures for cryptocurrency customers, the initiative demonstrates a significant commitment to combatting fraud in the crypto space. By implementing a series of advanced security features and maintaining transparency in transactions, Revolut is positioning itself as a leader in secure cryptocurrency transactions.