Victim Loses £165K in APP Scam Despite Revolut Security Features

In a shocking event, £165,000 was taken from a Revolut business account in under an hour. This incident has raised big questions about the security of the company's digital banking. The victim, a business owner, fell for a clever scam, resulting in a huge financial loss. They shared their story with BBC Panorama, expressing doubt about whether Revolut's security measures worked.

Digital Banking Vulnerability

The scammers got past Revolut's ID verification and accessed the account without permission. Despite the security features that Revolut promotes, the breach happened quickly, with no immediate solution. The stolen money has not been refunded, raising worries about how well digital banks protect against fraud.

According to the BBC, Revolut received more fraud reports last year than any major UK bank. As an online-only company, it lacks the physical presence of traditional banks, making it harder to prevent fraud and financial crime.

The Rise of Digital-Only Banks

Revolut has grown quickly, now serving over 45 million customers worldwide. Its fast account setup, good exchange rates, and user-friendly app have attracted many business owners, especially those who need to deal with multiple currencies. However, this case shows the risks of relying solely on app-based banking for business transactions.

The victim chose Revolut for its claimed security features but became a target of an authorized push payment (APP) scam. APP scams are the most common type of financial fraud in the UK, tricking victims into sending money to fraudsters.

How the Scam Happened

The scam began with a phone call from someone pretending to be a Revolut representative. They claimed the account had been compromised, convincing the victim to share important details. The fraudsters then used this information to transfer money. In less than an hour, over 137 transactions were processed, sending large amounts to fake accounts. Even though the victim tried to freeze the account, it took Revolut over 23 minutes to respond, allowing an additional £67,000 to be stolen.

The victim lost £165,000 with no refund from Revolut. This raises serious questions about how well Revolut protects its customers, especially those who fall victim to business account fraud.

Increasing Fraud Reports

In 2023, nearly 10,000 fraud reports involving Revolut were filed with Action Fraud, the UK's reporting center for cybercrime. This number is higher than for major UK banks, showing the risks of digital-only banking. Former Revolut employees noted that the company focused more on rapid growth than on preventing financial crime.

Competitors like Monzo and Barclays reported fewer fraud cases, putting more scrutiny on Revolut's vulnerabilities. Users, especially business owners dealing with large amounts of money, are increasingly worried about fraud prevention in digital banking.

Lack of Support for Victims

Revolut has faced criticism for how it handles fraud cases, with many customers experiencing long wait times and little support. In this victim's case, the delay in freezing the account allowed more money to be stolen. Complaints have been made against Revolut with the Financial Ombudsman Service and consumer groups, claiming the company isnt doing enough to reimburse fraud victims.

New rules requiring banks and e-money institutions to refund victims of APP scams are expected to impact Revolut financially. Many victims are demanding stronger fraud compensation policies and better support for resolving fraud issues.

Final Thoughts

The rise in fraud cases involving Revolut highlights the urgent need for digital banks to improve security and fraud prevention. Business account holders in the UK should be careful when using app-based financial services and stay alert for APP scams. The growing number of fraud reports linked to Revolut raises concerns about the companys ability to protect its customers, especially as it aims to become a full bank. It is crucial for Revolut to prioritize better security and customer support to safeguard users from future fraud.