Revolut Fraud Scandal: Customers Claim Security Failings

Revolut customers are voicing concerns over the company's security systems after falling victim to fraud, with losses totaling thousands and little hope of reimbursement.

Revolut, the digital bank, is facing criticism after a customer, Jack, lost £165,000 to fraudsters who bypassed the company’s security measures. Jack, who preferred not to disclose his surname, encountered fraud while using a shared Wi-Fi network. Despite Revolut's promotional emphasis on security, Jack fell prey to scammers impersonating the company. They tricked him into approving transactions to fake accounts linked to familiar names like Etsy. Once the fraud was underway, Jack struggled to get immediate help from Revolut, only able to engage a response through a chat function after substantial losses had occurred. He reports that the firm’s safety protocols failed him, especially as facial recognition wasn't triggered when the fraudsters accessed his account from a new device. The incident highlights broader concerns about Revolut’s security practices, as BBC Panorama found the company was named in over 10,000 fraud reports last year, more than any major UK bank. These reviews have led to Revolut topping complaint lists at the Financial Ombudsman Service, with criticisms pointing to the company’s focus on growth over fraud prevention. With its provisional status as a bank, Revolut affirms steps towards stronger fraud protection, including AI enhancements, as it prepares for full banking operations. However, skeptics urge caution, suggesting new regulations for faster victim compensation and higher stakes could prove challenging for the digital financial institution.