Revolut: the ML and AI-based system prevented scams for over €550 million

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Revolut, thanks to its proprietary fraud detection system, based on Machine Learning (ML) and Artificial Intelligence (AI), has prevented scams against its customers for over €550 million. 

Revolut and its ML and AI-based system to prevent scams against its customers

In its first report on financial crime and consumer security for 2023, Revolut has presented data analysis and trends on the scam phenomenon.

Here is a brief description of Revolut in the scam and financial crime scenario: 

“The fraud sector seems to have undergone significant changes, marked by the strengthening of fraudulent techniques aimed at obtaining sensitive details and personal information from victims for profit. To deceive victims, criminals have intensified their efforts, employing sophisticated tactics such as deceptive websites, extensive payment chains, and social engineering attacks.”

To combat these threats, last year Revolut implemented advanced security features. Among others, the banking app open to crypto has added biometric authentication and proactive alerts on payment flow.

Not only that, to prioritize training initiatives on scams, Revolut has included its Learn in-app program, so that customers can have the information and tools necessary to protect themselves from criminals. 

In this scenario, in 2023, Revolut has also implemented its proprietary scam detection system, based on Machine Learning (ML) and Artificial Intelligence (AI). The result was to prevent scams against customers for over €550 million.

Revolut: the AI-based anti-scam system and the report on financial crime

Thanks to its data analysis, Revolut has also described in its report on financial crime the current trends of scams. 

First of all, the report makes a distinction between unauthorized scams, where criminals violate the victim’s account without their knowledge, and authorized scams, where criminals convince the victim through deceptive practices to authorize payments. 

On this note, Revolut informs that although 62% of victims in 2023 were hit by unauthorized scams, the average loss per victim was 129€, compared to an average of 1,640€ for victims of authorized scams.

Going more into specifics, the banking app open to cryptocurrencies highlights the various scam trends in 2023. For example, in the case of unauthorized scams, fraud on cards with common attacks like phishing, constitute 98%. 

For authorized personnel, however, in 2023 it seems that job offer scams have increased by over 1200%. Even investment scams which, for the most part, involve Bitcoin and crypto, have increased by 142% last year.

Finally, even purchase scams remain the most popular type of fraud in all countries, accounting for 63% of all scams in 2023. 

The investment of 450 million euros in marketing

In addition to financial crime and security against scams, Revolut seems to aim high also in its global expansion. 

And indeed, last month, the bank open to crypto announced its investment of 450 million euros in marketing and sales activities in Europe.

His goal is to reach 50 million customers globally by the end of 2024, marking a 40% year-over-year growth. 

Only in Italy, Revolut aims to become the first banking app to reach 2.5 million customers by the end of this year. Currently, Revolut Italy operates with over 1.5 million customers and is the second most downloaded banking app nationwide.