Revolut, one of Europe’s leading neobanks has announced the launch of an AI-based, advanced scam-detection feature to help protect its customers from malicious card scams.
Its new feature can detect when a customer is being scammed, breaking the ‘spell’ of the scammer before money can be sent to the criminal.
This solution works as an added security layer on top of its existing security features, to specifically detect authorised push payment (APP) scams – where a user is coaxed into transferring money into a criminal’s account.
Revolut in the fight against financial crime
Revolut’s new feature comes after NASDAQ suggested new technologies, such as AI and Large Language Models (LLMs), be implemented by banks and financial institutions after 2023 saw US$3tn of illegal funds transferred through the global financial system.
It also comes after Experian’s Future of Fraud Forecast noted a 70% rise in losses from fraud over recent years.
Only 26% of banks and financial institutions are leveraging AI and LLMs to combat illicit money movement today. Revolut, therefore, is at the forefront of customer protection with the launch of its latest feature.
The neobank’s AI protection feature was built by its financial crime team and works by determining the likelihood of a customer’s card payment being part of a scam, automatically declining a payment if this appears to be the case.
Customers are then protected from performing other similar payments by being directed through a scam intervention flow in the Revolut app.
Here, they are prompted to provide additional information about the transaction they were attempting, so Revolut can accurately determine if the customer was being guided by a scammer to complete a payment.
The Revolut app then shows customers specific scam educational stories to better inform them of the tactics and strategies typically employed by fraudsters.
At this stage, Revolut customers will also have access to in-house fraud specialists for personal support in understanding and preventing fraud.
David Eborne, Head of Fraud at Revolut, says: “We’re very excited to be launching our new AI-scam feature which implements advanced technology to interrupt fraudsters taking advantage of everyday people.
“We’ve invested heavily in the product to ensure that customers can continue to spend and send their money safely. For example, a growing number of banks are increasingly restricting or heavily limiting the ability to make card payments to crypto and investment websites.
“With this advanced feature, rather than completely block those transactions, we ensure that customers who want to perform legitimate payments continue to do so, but also intervene to protect those who are being guided by criminals to make fraudulent ones. We are giving our customers both freedom and security at the same time.”
Scaling up product offerings to create a ‘super app’
The release of Revolut’s latest fraud prevention tool comes after it scaled its partnership with Sabre to propel B2B payments processes for travel agencies and, most notably, announced it would be offering mobile phone plans in its native UK.
This move comes as part of its plan to create a financial ‘super app’, something seen in Asian markets (China’s Ant Group and Tencent are examples), but yet to take off in Western markets.
The creation of a super-app could certainly take Revolut into new echelons in the financial services sphere, as it continues to challenge incumbent banks with improved, consumer-focused services.
Reacting to Revolut’s new super app plans, Appdome’s Chief Product Officer, Chris Roeckl, says: “Super apps will provide consumers convenience by aggregating multiple services into one app – driving consumer loyalty.
“From a security perspective, super apps increase the attack surface. As such, developers and cyber security teams must ensure the highest levels of app defence for mobile brands to meet their cybersecurity pledges and safe experiences for app users.
“This is best accomplished using the latest tools that unify mobile app defences and do so in the DevOps pipeline.”
Indeed, the launch of Revolut’s AI scam-detection feature is a significant move in protecting its growing surface of attack. For the neobank, keeping consumer protection front of mind will be vital as it scales its offerings to provide ‘super app’ services.
