Revolut enhances fraud protection measures through advanced algorithms
The UK financial technology startup Revolut has successfully prevented nearly $13.5 million in cryptocurrency losses over the past three months by enhancing fraud protection measures through advanced algorithms.
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Revolut Uses "Advanced Algorithms" to Prevent Fraud
According to a report by The Block, Revolut earlier this year launched its cryptocurrency-specific trading platform Revolut X in the UK. Revolut stated that this platform utilizes "advanced algorithms" to execute fraud prevention and anti-money laundering regulations, efficiently processing customer transactions in real-time. During the period from June to September, it flagged 8% of transfers as potentially suspicious transactions. After a more thorough review process, only one in five thousand flagged transfers would result in an account closure, accounting for 0.02% of Revolut's global 45 million customers.
Woody Malouf, Head of Financial Crime and Fraud at Revolut, added that leveraging this technology could potentially help Revolut avoid $590 million in potential fraud losses by 2023.
UK to Require Banks to Compensate Victims of Authorized Push Payment (APP) Fraud
Starting from October 7th, UK banks are mandated to compensate victims of Authorized Push Payment (APP) fraud, with a compensation cap of £85,000. While the compensation cap has significantly decreased from the initially proposed £415,000 by the UK Payment Systems Regulator (PSR), it still poses a substantial financial responsibility and burden for banks. This has raised questions about why banks need to bear the majority of fraud liability, especially in cases where fraud often originates from social media platforms. Revolut's move is likely a proactive measure to mitigate its own risks.
Who is Responsible for Online Fraud? Banks, Facebook Turn a Blind Eye, UK Government Forces Industry to Compensate
As reported earlier, Revolut obtained a banking license in July this year and there were rumors of launching a stablecoin business. A spokesperson for Revolut stated that the company aims to expand its cryptocurrency products, taking a compliance-first approach to become a safe haven for the entire cryptocurrency community.
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