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
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 compared to traditional payment methods.
Crypto exchanges and on-ramps can integrate Revolut Pay as a payment method, enabling users to purchase cryptocurrency directly through these platforms with enhanced security measures in place. This integration creates a more secure environment for crypto transactions while maintaining functionality.
The system includes proof of crypto delivery features, ensuring that transactions are properly completed and verified. This adds an additional layer of security by confirming that purchased cryptocurrencies are actually delivered to the correct wallet addresses.
Through the pilot program, Revolut gathered data showing that participants experienced approximately 50% fewer attempts at fraud compared to those using traditional payment methods. This reduction in fraud attempts demonstrated the effectiveness of the enhanced security measures.
The rollout is scheduled to begin at the start of 2025, allowing time for crypto merchants and exchanges to integrate the new security features into their platforms. Revolut plans to make the enhanced due diligence API available to all crypto customers at that time.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.
By Nermeen Nabil Khear