Revolut plans to enhance fraud risk combat in crypto ecosystem via the Revolut Pay service that comes with enhanced checks.
Revolut Group Holdings Ltd, a global financial technology company, intends to implement additional security measures to protect its users’ digital assets. Specifically, Revolut plans to extend Revolut Pay, its fraud-prevention product, to crypto customers from the start of 2025.
Revolut Protizes Users’ Safety
The crypto market has seen a fair share of fraudulent activities, including identity theft, phishing schemes, and even AI deepfakes. According to a recent report, Revolut hopes to improve protection against fraudulent attacks via Revolut Pay.
The Fintech company highlighted the challenge of limited visibility into card transactions and bank transfers its crypto customers make with the exchange. Revolut explained that these challenges potentially expose its crypto customers to higher levels of fraud, especially due to card mechanisms having limited anti-scam protections.
Revolut said a recent analysis of a 12-month pilot of firms using Revolut Pay’s enhanced due diligence showed crypto customers were exposed to about 50% fewer attempts to defraud them. These firms also used Revolut Pay’s direct API integration and end-to-end control.
Some enhancements added to Revolut Pay include Know-Your-Customer (KYC) name matching, fraud warning screens, and proof of crypto delivery. Alex Codina, a General Manager at Revolut, revealed in an interview that crypto firms, including exchanges, can integrate Revolut Pay as a payment method into their platforms. The goal is to allow Revolut users to buy crypto directly and safely at those checkouts.
The integration with third-party exchanges or on-ramps begins with KYC matching. This ensures that the individual buying on Revolut also has KYC on the exchange’s side. Therefore, the transaction is rejected if the names do not tally on both platforms.
Revolut also pointed out that firms constantly fight against another sophisticated array of investment scams that leverage users’ naivety. Codina acknowledged that these are the hardest scams to deal with. However, the general manager said Revolut has some safety measures, such as referring users to a customer services manager to chat about the transaction briefly.
Broader Crypto Fraud Concerns
Revolut’s plan to introduce its Revolut Pay to the digital currency ecosystem comes amid broader fraud concerns in the crypto market.
A pseudonymous security researcher, pcaversaccio, recently stated that some young hackers have impersonated Coinbase’s support team to trick users and drain their accounts. Additionally, crypto commentator Sean Clarke warned users to stop using Coinbase Global Inc (NASDAQ: COIN)
Sean claimed that the exchange became unavailable during a market surge, preventing users from accessing self-custody of their Bitcoin.
Coinbase has, however, dismissed these allegations and assured users that its team is working diligently to resolve the issues.
Furthermore, Upbit, the South Korean leading crypto exchange, recently reimbursed $6 million to 380 telecom fraud victims. This initiative reflects a broader effort to combat illicit activities that often target digital assets trading platforms.
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