Reading the recent story about Jack, who lost £165,000 in under an hour from his Revolut business account, raises some serious questions about the security practices of digital-only banks. Revolut, like many other fintech players, has surged in popularity because of its sleek app, ease of use, and attractive exchange rates. But, when it comes to fraud prevention, this case shows that the experience might not be as robust as you’d hope. Let’s break this down in an informal, user-friendly way.
When you’re being scammed, every second counts. Jack’s story highlights just how crucial it is to have quick access to support when things go sideways. Revolut’s lack of a dedicated helpline meant Jack had to navigate through an app chat feature to freeze his account. In the 23 minutes it took to do that, the fraudsters made off with another £67,000. This is a major issue because, when fraud happens, you don’t have the luxury of time. We’ve come to expect faster, more personalised responses from our tech services, but it seems this area is still lacking.
Revolut isn’t a bank yet, but they’re aiming for full bank status. In the meantime, they operate as an e-money institution, which doesn’t offer the same protection as a traditional bank. Now, this isn’t necessarily a bad thing; companies like Revolut have made finance more accessible, flexible, and convenient. But, as Jack’s case shows, the downside is that fraudsters seem to find it easier to game their systems compared to more established high street banks. When a scammer can bypass basic ID verification (like facial recognition) and create fake payees with names like “Revolut fees”, it’s clear that the security controls have some holes.
All financial institutions have to walk a fine line between providing a seamless user experience and implementing robust security measures. Too many security checks, and users complain about the hassle; too few, and scammers swoop in. Revolut, according to some former employees, might have focused too much on growth and launching new products, leaving fraud prevention as an afterthought. The fact that Jack’s 137 transactions in an hour didn’t set off more alarms within Revolut’s systems makes you wonder; why weren’t these red flags acted on immediately?
This isn’t just a Revolut problem; fraud is a widespread issue for all banks, digital or not. If you’re using a digital-only bank or any financial service, here are a few practical tips:
- Enable Every Layer of Security – Use all available security features, including multi-factor authentication (MFA), which adds an extra step for anyone trying to get into your account.
- Be Skeptical of Calls and Messages – If someone calls you claiming to be from your bank, hang up and contact them directly via a trusted channel. Jack was scammed because he believed the caller was legit. It’s easy to fall into that trap, but taking a moment to verify things can make all the difference.
- Keep a Minimal Amount in E-money Accounts – Until digital-only banks have the same protections as traditional banks, consider keeping only smaller amounts in these accounts. It’s tempting to use them for their convenience, but this might help mitigate the risks.
Revolut is trying to address the issue; they’ve reportedly cut fraud by 20% in the last year and introduced features like biometric ID and AI-driven scam detection. Still, with the introduction of new regulations that require banks to reimburse fraud victims up to £85,000, the stakes have never been higher.
Revolut’s journey to becoming a fully-fledged bank means the pressure’s on them to shore up these vulnerabilities. Hopefully, they’ll rise to the occasion and implement the kind of security measures we expect from institutions handling our money.
In the end, digital banks like Revolut are undoubtedly shaping the future of finance; but with that comes the responsibility to ensure their security practices keep pace with their innovation.
Sources: