Key Insights
- Revolut launched new AI-powered feature to detect and prevent authorized push payment scams in UK and Europe
- Report found 60% of reported scams in UK and 61% in EEA originated from Meta platforms in 2022
- Investment scams accounted for 59% of total customer losses though purchase scams more frequent
LONDON (MarketsXplora) – Fintech firm Revolut has rolled out new technology to detect and prevent authorized push payment (APP) scams targeting its customers in the UK and Europe.
The feature uses machine learning algorithms to spot potential signs of scams and stop suspicious transactions before they happen. It was developed internally by Revolut’s financial crime team.
According to Revolut’s Head of Fraud David Eborne, the tool looks at the risk of customers unwittingly making scam-related payments. If deemed risky, the transaction is declined and users go through an in-app intervention process for further verification.
“With this advanced feature, rather than completely block transactions, we ensure customers can still make legitimate payments while intervening to protect those being manipulated by criminals,” Eborne said.
The announcement comes alongside a Revolut report that found 60% of reported scams and associated losses in the UK originated from Meta Platforms, including Facebook, Instagram and WhatsApp. That number rose to 66% by December.
Across the European Economic Area, 61% of reported scams originated from Meta. While investment scams accounted for 59% of overall customer losses online, purchase scams were more frequent despite lower individual losses.
Regulators have recently pressured banks and fintechs to bolster protections around APP scams, which saw over £574 million stolen in 2022 according to UK Finance. Victims are often manipulated into transferring funds to accounts controlled by criminals.
To crack down, the Payment Systems Regulator (PSR) has introduced new reimbursement requirements for APP scam victims as of 2024. Firms like Revolut are preemptively enhancing security to reduce fraud avenue.
“As scams grow increasingly sophisticated, we expect more innovation around scam detection from fintech challengers to instill confidence in digital transactions,” said Venky Srinivasan, an analyst at Broker Smart.