Revolut Blocks $13.5 Million in Potentially Fraudulent Crypto Transfers

Highlights:

• Revolut blocked up to $13.5 million in potentially fraudulent crypto transfers over the past three months.
• The anti-fraud system alerts users to suspicious transactions in real-time.
• The company saved customers over $590 million from fraud in 2023.

On October 7, Revolut, a London-based neobank, revealed it had blocked up to $13.5 million in potentially fraudulent crypto transfers from June 1 to September 1, 2024. The company credited this success to improved crypto-specific security measures, which have greatly enhanced its ability to prevent potential fraud.

JUST IN: REVOLUT BLOCKS UP TO $13.5M IN POTENTIALLY FRAUDULENT CRYPTO TRANSFERS BETWEEN JUNE 1 AND SEPT. 1, 2024 ~ COINTELEGRAPH

— BSCN Headlines (@BSCNheadlines) October 8, 2024

Revolut Strengthens Crypto Security with Advanced Anti-Fraud Measures

Revolut’s crypto anti-fraud system is designed to protect investors by alerting them to potentially suspicious transactions. When users initiate a crypto transfer, Revolut’s algorithms monitor the transaction in real-time and issue in-app warnings if any suspicious activity is detected.

“Revolut’s system is designed to handle genuine transfers efficiently,” the company said. The platform successfully completed 92% of all crypto transactions without needing any extra information from users.

However, the remaining 8% undergo additional checks to comply with fraud prevention and anti-money laundering regulations. Consequently, fewer than 0.02% of transactions, or 1 in 5,000, result in account termination after review.

Additionally, Revolut’s Wealth Protection feature offers optional biometric security for crypto traders. When enabled, withdrawals require a selfie verification, in contrast to the initial KYC selfie, thereby providing two layers of biometric checks for enhanced security.

Emil Urmanshin, director of crypto and new bets at Revolut, noted that the platform has continuously refined its transfer process since launching crypto withdrawals and deposits.

He added:

“We follow strict financial regulations to create a secure environment for all of our customers’ crypto transactions. This starts from the second they sign up — from monitoring patterns in suspicious activity to identity checks, and using two-factor authentication.”

Revolut Saved Customers $590 Million from Fraudulent Transactions in 2023

Revolut estimated that it saved customers over $590 million in potentially fraudulent transactions in 2023. This information comes from Woody Malouf, the company’s head of financial crime and fraud.

Malouf provided further details, explaining that these potential fraud cases encompass various schemes. These include celebrity endorsement scams, deepfakes, and scams generated by artificial intelligence

The executive emphasized that Revolut truly prioritizes security, especially regarding crypto. He highlighted that the company’s security measures involve monitoring for suspicious activity patterns, implementing two-factor authentication, and providing “award-winning support” available 24/7.

In addition to these developments, Revolut is reportedly getting ready to launch its own stablecoin, aiming to compete with major industry players. This initiative represents a significant advancement for the London-based firm as it enhances its presence in the crypto space alongside companies like PayPal, Ripple, and BitGo.

Over $409 Million Lost to Crypto Hacks in Q3 2024: Immunefi

Immunefi reported that crypto hackers stole an estimated $409 million in the third quarter of 2024. This figure underscores the ongoing attacks on both centralized and decentralized platforms, with several prominent exchanges and protocols experiencing significant breaches.

The report notes that more than $3 million of the stolen amount originated from hacks at Singapore-based crypto exchange BingX and Indian exchange WazirX, which together accounted for 69.5% of the quarter’s total losses. As DeFi continues to grow, boasting over $87 billion in total value locked, the threat from hackers shows no signs of abating.

Hacks accounted for 99.25% of total funds lost this quarter, while fraud represented a mere 0.75%. Notably, fraud cases saw a significant year-over-year decrease, dropping by 86.4%. This $409 million loss marks a 40% decline from the same quarter in 2023, which experienced losses exceeding $685 million due to hackers and fraudsters.