Revolut, a leading fintech company, has announced plans to extend its security wrapper, Revolut Pay, to crypto customers starting in 2025. This move is aimed at enhancing protection against fraudulent attacks that crypto customers may be vulnerable to. Currently, Revolut highlights that there is limited visibility into the card transactions and bank transfers made by its crypto customers when dealing with exchanges, which can expose them to higher levels of fraud due to the lack of anti-scam protections in card mechanisms.
A 12-month pilot program involving firms utilizing Revolut Pay’s enhanced security features such as due diligence, direct API integration, and end-to-end payment process control revealed that crypto customers experienced around 50% fewer attempts to defraud them. The enhancements included features like know-your-customer (KYC) name matching, fraud warning screens, proof of crypto delivery, and the provision of transaction risk scores to crypto merchants. Given the prevalence of fraudulent activities and scams in the crypto space, these additional security measures can play a vital role in safeguarding users.
The integration of Revolut Pay with third-party exchanges or on-ramps begins with KYC matching to ensure that the person making the purchase on Revolut’s side matches the one KYC’d by the exchange. Any mismatch in names results in transaction rejection, similar to the scenario of a stolen card in the traditional card world. Furthermore, firms constantly strive to combat various investment scams where customers are lured into fraudulent transactions under false promises of rewards. The risk score of transactions is evaluated based on user information, such as past crypto trading activities with Revolut or third parties, to identify potential involvement in investment scams.
As part of ensuring a balance between user experience and safety, Revolut implements safety measures that may include additional questions about transactions or referral to customer service for further verification. This approach allows Revolut to add friction to transactions deemed risky, depending on the evaluation of the transaction’s probability of being associated with fraudulent activities. The robust model and framework adopted by Revolut offer a proactive approach to addressing potential risks and enhancing the overall security of crypto transactions for customers.
Alex Codina, the general manager for merchant payments at Revolut, emphasized the significance of integrating Revolut Pay as a payment method for crypto firms, such as exchanges or on-rampers, to enable users to buy crypto in a safer manner. By leveraging the security features provided by Revolut Pay, crypto merchants can offer a more secure checkout process for their customers, thereby reducing the risks associated with fraudulent activities in the crypto space. The partnership between Revolut and crypto firms marks a strategic step towards improving the overall security posture of crypto transactions and enhancing the trust of customers in the digital asset ecosystem.
In conclusion, Revolut’s initiative to extend Revolut Pay to crypto customers represents a significant advancement in bolstering security measures and protecting users against fraudulent attacks. With the integration of enhanced security features, including KYC matching, fraud warning screens, and transaction risk assessment, Revolut aims to significantly reduce the risks associated with fraudulent activities in the crypto space. By prioritizing user safety while ensuring a seamless transaction experience, Revolut sets a new standard for security measures in the digital asset landscape. As the crypto industry continues to evolve, collaborations between fintech companies like Revolut and crypto firms play a crucial role in enhancing security protocols and fostering greater trust among users.
