In a major move to combat the rampant fraud plaguing the cryptocurrency industry, fintech powerhouse Revolut has announced plans to extend its renowned Revolut Pay security system to its crypto customers starting in 2025. The London-based company, which boasts over 20 million users worldwide, is set to bring its battle-tested fraud prevention tools to the wild west of digital assets, aiming to provide a safer and more secure environment for crypto enthusiasts.
Cutting-Edge Fraud Prevention for Crypto
Revolut Pay, the fintech firm’s proprietary security wrapper, has proven its mettle in the traditional financial realm, leveraging advanced technologies like AI-powered transaction monitoring, biometric authentication, and real-time risk assessment. Now, Revolut is poised to adapt these cutting-edge tools to the unique challenges of the crypto space, where scams, hacks, and fraudulent schemes run rampant.
According to Alex Codina, Revolut’s general manager for merchant payments, the crypto industry faces a significant issue with fraud outcomes. “Crypto firms, either exchanges or on-rampers, can integrate Revolut Pay as a payment method and by doing that we allow our users to directly buy crypto on those checkouts in a safer manner,” Codina explained in an exclusive interview.
Enhanced Due Diligence and Risk Scoring
One of the key features of Revolut Pay’s crypto security suite will be enhanced due diligence checks, including know-your-customer (KYC) name matching. This process will validate that the person buying crypto through Revolut is the same individual who has undergone KYC verification on the exchange’s side, rejecting transactions where names don’t match to prevent fraudulent activities like stolen card purchases.
Moreover, Revolut Pay will assign risk scores to crypto transactions based on a user’s trading history and behavior patterns. Transactions deemed high-risk may trigger additional security measures, such as secondary authentication, fraud warning screens, or even referral to a customer service representative for further verification. This dynamic risk assessment aims to strike a balance between user experience and safety, applying the appropriate level of friction based on the perceived threat level.
Proven Track Record and Promising Results
The decision to extend Revolut Pay to the crypto realm comes on the heels of a successful 12-month pilot program involving firms using the enhanced security features. The results were impressive, with crypto customers exposed to approximately 50% fewer attempts to defraud them compared to those without the added protection.
“We have a pretty robust model and framework where we can add some friction, depending on how risky we think the transaction is,” Codina remarked, underlining Revolut’s commitment to safeguarding its users’ assets and personal information.
A Game-Changer for Crypto Security
As the crypto industry continues to grapple with an onslaught of sophisticated scams and fraudulent schemes, Revolut Pay’s entry into the digital asset space could mark a turning point in the fight against financial crime. By adapting its proven security measures to the unique challenges of cryptocurrencies, Revolut is positioning itself as a leader in the push for a safer, more trustworthy crypto ecosystem.
The integration of Revolut Pay with third-party exchanges and on-ramps is set to begin in early 2025, with the company working closely with its partners to ensure a smooth rollout. As more crypto firms adopt these enhanced security measures, the industry as a whole stands to benefit from increased consumer confidence and reduced instances of fraud.
For the millions of Revolut users who have embraced cryptocurrencies, the extension of Revolut Pay’s protection to their digital asset transactions offers a much-needed layer of security in an often treacherous landscape. As the fintech giant continues to innovate and adapt to the ever-evolving world of finance, its commitment to customer safety remains unwavering, setting a new standard for the industry to follow.
