TLDR
- Early 2025 will see the rollout of improved security protocols for crypto users through Revolut Pay, building on a test phase that showed a dramatic 50% dip in fraud.
- Among the new protective measures are matching KYC information between Revolut and crypto exchanges, assessing transaction risks, and alert systems for potential fraud.
- The initiative is designed to tackle the limited oversight in transactions with crypto exchanges via card or bank transfers.
- With this integration, there will be direct APIs and comprehensive control over the payment process from start to finish.
- This rollout focuses on balancing user convenience and security, introducing varying friction levels based on transaction risk evaluations.
Financial technology company Revolut unveiled its intentions to broaden the scope of its Revolut Pay security system to encompass crypto-related transactions beginning in 2025. This decision is backed by a year-long pilot that successfully slashed fraud attempts by half.
The newly introduced security measures aim to bridge the current gaps seen in card and bank transactions with crypto platforms, which historically leave users exposed to fraud due to weak safeguards.
Key to the upgraded system is a feature ensuring KYC name alignment, safeguarding that the purchaser's identity through Revolut is consistent with that verified by the crypto exchange.
Alex Codina, heading merchant payments at Revolut, emphasized the critical nature of KYC name matching. He likened unmatched names to a scenario akin to using a stolen credit card.
In an effort to combat fraudulent behavior among crypto merchants, transaction risk scores are being implemented. These scores will highlight potentially malicious activities by evaluating past trading behaviors across multiple platforms.
Revolut’s boosted security effort coincides with the evolving landscape of crypto fraud, where attackers increasingly use advanced tactics like identity theft and AI-driven deep fakes.
Security checks will adjust based on transaction risk levels, with low-risk dealings facing simple questions, and high-risk ones possibly needing further review by customer support.
Codina talked about the delicate act of preserving user experience while maintaining strong security. He mentioned their flexible strategy that adds layers of verification dependent on the perceived threat level.
To further safeguard users, the system will feature fraud alerts that inform them of potential scams before finalizing transactions, thus educating users on avoiding deceptive practices.
A core focus of the system is tackling fraudulent investment schemes, which lure users with false promises. The risk assessment system detects such scams, aiming to intervene before users fall prey.
The pilot revealed how effective direct API integration and detailed payment handling controls are, offering superior transaction tracking over conventional payment methods.
With Revolut Pay, crypto exchanges and entry platforms can offer a safer purchasing avenue, enhancing the security and user experience of crypto transactions.
The inclusion of crypto delivery confirmation features guarantees the completion and verification of transactions, ensuring that the cryptocurrencies bought reach the correct wallet addresses.
Data from the pilot showed that participants faced 50% fewer fraud attempts compared to those using standard payment solutions, highlighting the effectiveness of the security improvements.
The full roll-out of these features is planned for early 2025, allowing crypto businesses ample time to adapt and incorporate these new security measures into their systems. At that same time, Revolut aims to release a comprehensive API for crypto clientele.
