British financial start-up Revolut has successfully avoided nearly $13.5 million in cryptocurrency losses in the past three months by using "advanced algorithms" to enhance fraud protection measures.

Revolut uses "advanced algorithms" to prevent fraud

According to The Block, Revolut launched its cryptocurrency-specific trading platform Revolut Process customer transactions. It flagged 8% of transfers as potentially suspicious between June and September. After a more in-depth review process, only one in 5,000 flagged transfers will result in account closure. This represents 0.02% of Revolut’s 45 million customers globally.

Woody Malouf, head of financial crime and fraud at Revolut, added that leveraging this technology could allow Revolut to avoid $590 million in losses from potentially fraudulent transactions in 2023.

UK to require banks to compensate for authorized payment fraud (APP fraud)

UK banks have been required to compensate victims of authorized payment fraud (APP fraud) from 7 October, with compensation capped at £85,000. Although this has been significantly reduced compared to the £415,000 compensation limit originally proposed by the UK Payments System Regulator (PSR), it is also a considerable financial responsibility and burden for banks, which raises the question of why banks need to bear such a large sum of money. There are questions about liability for some scams, especially since scams often start on social media platforms. Revolut’s move should also be a pre-preparation to reduce its own risks.

(Who is responsible for online fraud? Banks and Facebook condone fraud and ignore it, and the British government forces businesses to compensate)

According to previous reports, Revolut obtained a banking license in July this year, and there are reports that it will soon launch a stablecoin business. A Revolut spokesperson said at the time that the company wanted to expand its cryptocurrency offerings, take a compliance-first approach and become a safe haven for the entire cryptocurrency community.

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