Revolut to launch fraud protection for crypto customers as scams surge

Revolut is introducing a new suite of anti-fraud protections for its cryptocurrency customers next year, aiming to address the rising threats of scams and financial crime in crypto payments. Following a successful pilot programme, the British fintech found these measures reduced fraud attempts by 50%, offering much-needed security for users navigating an increasingly risky market.

Alex Codina, General Manager for Merchant Payments at Revolut, described the importance of this initiative, telling CoinDesk: “We allow our users to directly buy crypto on those checkouts in a safer manner.”

The new protections are designed to make crypto transactions more secure at the point of purchase, offering tools that crypto firms such as exchanges and on-ramp platforms can integrate via Revolut Pay. Key features include:

• Know-Your-Customer (KYC) name matching to verify the identities of buyers and reduce fraudulent activity.
• Fraud warning screens to alert customers to suspicious transactions.
• Proof of crypto delivery to ensure legitimate transfers.
• Transaction risk scores for merchants, providing insights to detect and prevent high-risk activity.

For now, Revolut admits there is limited visibility into transactions made by crypto customers using traditional payment cards, leaving them more susceptible to scams. The new protections aim to fill that gap and offer safer, more transparent payment experiences.

A growing fraud problem in crypto

Revolut’s initiative comes at a critical time. Cryptocurrency-related fraud continues to surge, with losses rising 45% in 2023 to reach $5.6 billion, according to the FBI’s Internet Crime Complaint Center (IC3). Although crypto-related complaints accounted for just 10% of all financial fraud cases, they made up 50% of total financial losses due to the sheer scale of scams.

The speed and decentralised nature of cryptocurrency transactions make them attractive for criminals while posing significant challenges for recovery. This year alone, law enforcement agencies have taken increasingly creative measures to combat crypto fraud. For instance, the FBI recently charged 18 individuals through a sting operation involving its own crypto asset, “NexfundAI”, to expose manipulation and fraudulent activity.

As Codina noted, Revolut’s new protections are a step toward safer crypto adoption. By enabling enhanced fraud detection and verification mechanisms, Revolut Pay hopes to provide customers with greater confidence when making digital currency purchases.

Setting a new standard for security

Revolut’s anti-fraud measures signal a broader industry shift towards prioritising security in the crypto space. As scams become more sophisticated, fintech platforms must bridge the trust gap for users wary of financial losses.

With fraud protections already showing tangible success, Revolut’s initiative could set a new benchmark for crypto payments. For customers, this means safer transactions; for the industry, it represents a step towards reducing fraud in one of the most vulnerable corners of digital finance.

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