Crypto
Crypto TLDR
- Revolut will launch enhanced crypto security features through Revolut Pay for crypto customers in early 2025, following successful pilot showing 50% reduction in fraud attempts
- New security measures include KYC name matching between Revolut and exchange accounts, transaction risk scoring, and fraud warning screens
- The system aims to address limited visibility in card transactions and bank transfers with crypto exchanges
- Integration includes direct API connections and end-to-end payment process control
- Implementation balances user experience with safety through targeted friction based on risk assessment
Financial technology company Revolut announced plans to extend its Revolut Pay security system to cryptocurrency customers starting in early 2025. The decision follows a successful 12-month pilot program that showed a 50% reduction in fraud attempts against users.
The new security features aim to address current limitations in card transactions and bank transfers between Revolut customers and crypto exchanges. These limitations have left users more vulnerable to fraud due to insufficient anti-scam protections in traditional card payment systems.
The enhanced security system includes several key features designed to protect users. One main component is know-your-customer (KYC) name matching, which verifies that the person making a purchase through Revolut matches the identity verified by the crypto exchange.
Alex Codina, general manager for merchant payments at Revolut, explained the importance of name matching in an interview. “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,” he said.
The system also introduces transaction risk scores for crypto merchants. These scores help identify potentially fraudulent activities by analyzing user behavior and transaction patterns. The risk assessment considers factors such as previous crypto trading history with both Revolut and third-party platforms.
Revolut’s security upgrade comes at a time when cryptocurrency fraud continues to evolve. Scammers now employ sophisticated techniques, including identity theft, phishing attacks, and even artificial intelligence-powered deep fakes to target users.
The new system implements varying levels of security checks based on the assessed risk of each transaction. Lower-risk transactions might require simple verification questions, while higher-risk activities could trigger a referral to a customer service manager for additional screening.
Codina highlighted the challenge of maintaining a balance between security and user experience. “We have a pretty robust model and framework where we can add some friction, depending on how risky we think the transaction is,” he explained.
The security measures include fraud warning screens that alert users to potential risks before they complete transactions. This feature helps educate customers about common scam tactics and provides real-time warnings when suspicious patterns are detected.
One particular focus of the new system is combating investment scams. These schemes often trick customers into making transactions with promises of fictional rewards. Revolut’s risk assessment system helps identify these patterns and can intervene before users fall victim to such scams.
The pilot program demonstrated the effectiveness of direct API integration and end-to-end control over the payment process. This technical implementation allows for better monitoring and control of transactions
