A business owner found themselves the victim of a sophisticated scam while traveling in Italy, resulting in the theft of £40,000 from their Revolut business account. The scam occurred in February when the individual had limited internet access and a poor mobile phone signal. The incident raises concerns about the security measures in place for digital banking platforms and the growing number of fraud cases reported by Revolut customers.
The scammer exploited verification codes to establish new payees and executed 38 withdrawals from the victim's account within minutes. Despite these rapid transactions, Revolut ceased efforts to recover the stolen funds after just ten days. The lack of resolution has prompted the victim to seek assistance from the Financial Ombudsman Service in hopes of reclaiming their lost money.
Sarah Spruce, a partner with TLW Solicitors, is currently aiding 90 victims of Revolut-related fraud in pursuing claims against the company. This case adds to the growing number of complaints filed with Action Fraud against Revolut, which have increased from 567 in February 2023 to 1,086 in February 2024. The Metropolitan Police are investigating the incident as part of their broader efforts to combat financial scams.
One crucial aspect of this case is that Revolut does not possess a UK banking license and is not a participant in the contingent reimbursement model code (CRM code). This voluntary code provides guidelines for banks and financial institutions on when defrauded customers should be reimbursed. The absence of a UK banking license and non-participation in the CRM code may affect the company's ability to provide adequate customer protection and recourse.
Revolut expressed regret over the situation, stating:
"We take a data-driven approach to identify scam activity and use sophisticated fraud modelling for inbound and outbound transactions to protect customers from falling victim to fraud, including clear, unskippable warnings and direct interventions by our specialist fraud prevention teams. Revolut will never phone you without first confirming via our secure in-app chat." – Revolut
Despite these assurances, the victim described receiving a call from a hidden number, followed by a call from their accountant prompting them to answer a call from Revolut. The scammer demonstrated full access to the account details, referencing past transactions and utilizing verification codes sent during a so-called "security check" to gain unauthorized access.
This incident underscores the challenges faced by digital banking platforms like Revolut in safeguarding customer funds from increasingly sophisticated scammers. While Revolut highlights its use of advanced fraud detection tools, the effectiveness of these measures remains under scrutiny as reports of fraud continue to rise.