TLDR
- Revolut will launch enhanced cryptocurrency security features with Revolut Pay for cryptocurrency customers in early 2025, following a successful pilot that saw a 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 the limited visibility of card transactions and bank transfers through cryptocurrency exchanges.
- Integrations include direct API connectivity and end-to-end payment process control.
- The implementation balances user experience and safety with targeted friction based on risk assessment.
Financial technology company Revolut has announced plans to expand its Revolut Pay security system to cryptocurrency customers starting in early 2025. This decision follows a successful 12-month pilot program that saw a 50% reduction in fraud attempts against users.
The new security feature aims to address current restrictions on card transactions and bank transfers between Revolut customers and cryptocurrency exchanges. These limitations make users more vulnerable to fraud due to the lack of anti-fraud protections in traditional card payment systems.
Our enhanced security system includes several key features designed to protect you. One of the key components is KYC (Know Your Customer) name matching, which ensures that the person purchasing through Revolut matches the identity verified by the cryptocurrency exchange.
Alex Codina, general manager of merchant payments at Revolut, explained the importance of name matching in an interview. “If the names do not match, the transaction will be rejected. “In the card world, this is a stolen card or something like that,” he said.
The system also introduces transaction risk scores for cryptocurrency sellers. This score helps us identify potential fraudulent activity by analyzing user behavior and transaction patterns. The risk assessment takes into account factors such as your previous cryptocurrency trading history on both Revolut and third-party platforms.
Revolut’s security upgrade comes at a time when cryptocurrency fraud continues to evolve. Fraudsters now use sophisticated techniques to target users, including identity theft, phishing attacks, and artificial intelligence-based deepfakes.
The new system implements different levels of security checks based on the assessed risk of each transaction. Low-risk transactions may require brief verification questions, while higher-risk activities may refer you to a customer service manager for further screening.
Codina highlighted the challenge of balancing security and user experience. “We have a very robust model and framework that allows us to add some friction depending on how risky we think the transaction is,” he explained.
Security measures include a fraud warning screen that alerts users to potential risks before completing a transaction. This feature helps educate customers about common fraud tactics and provides real-time alerts when suspicious patterns are detected.
One of the special focuses of the new system is the fight against investment fraud. These schemes often trick customers into making deals with promises of fictitious rewards. Revolut’s risk assessment system helps identify these patterns and allows users to intervene before they become victims of these 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 more effective monitoring and control of transactions compared to traditional payment methods.
Cryptocurrency exchanges and onramps are integrating Revolut Pay as a payment method, allowing users to purchase cryptocurrencies directly through these platforms with enhanced security measures. This integration creates a more secure environment for cryptocurrency trading while maintaining functionality.
The system includes cryptocurrency proof-of-delivery functionality to ensure transactions are properly completed and confirmed. This adds an extra layer of security by ensuring that your purchased cryptocurrency is actually being delivered to the correct wallet address.
Through the pilot program, Revolut collected data showing that participants experienced approximately 50% fewer fraud attempts compared to those using traditional payment methods. This reduction in fraud attempts demonstrates the effectiveness of our enhanced security measures.
The rollout is scheduled to begin in early 2025, giving cryptocurrency merchants and exchanges time to integrate new security features into their platforms. Revolut plans to make its enhanced due diligence API available to all cryptocurrency customers at that time.