Revolut launches crypto fraud protection service to fight major industry hurdle

The news: Revolut will roll out its fraud protection service, Revolut Pay, to crypto customers in 2025, per CoinDesk.

• The service includes know-your-customer (KYC) name matching, transaction risk scores, proof of crypto delivery, and fraud warning screens.
• In a yearlong pilot of the service, crypto customers were exposed to 50% fewer attempts at being defrauded, according to the company.

Why this matters: Crypto payments can be susceptible to fraud due to the speed and irreversibility of sending a transfer.

• Crypto accounted for 10% of all financial fraud complaints last year and a whopping 50% of the total losses, per the FBI.
• Losses from these complaints jumped up 45% YoY in 2023.

Our take: Fraud protection services like Revolut Pay can help consumers feel more comfortable making crypto payments.

• Crypto scams and concerns that the digital assets are being used for illegal purposes has been a major pain point in growing crypto adoption.
• It’s one reason why only 1.6% of internet users made a crypto payment this year, according to our forecast.

Implementing these fraud protections now could also help Revolut stay a step ahead of forthcoming crypto regulation, which may include similar requirements like KYC matching. We expect the Trump administration will finally usher in regulation for the industry, which has been lacking.

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