Revolut prevented the loss of nearly PLN 2.4 billion from customer accounts

Revolut prevented the loss of nearly PLN 2.4 billion from customer accounts

Revolut has published a report on financial crime and the security of its customers. The fraud detection system created by fintech prevented a total loss of GBP 475 million in 2023, which is the equivalent of nearly PLN 2.4 billion.

Revolut has published its first report on the topic financial crime and customer security. The company analyzes trends, risks and data regarding the most harmful fraud methods in 2023.

Scammers have increasingly better methods

Revolut data for 2023 shows that with development of extortion methods from victims of sensitive personal and account information, the threat from fraudsters is growing. Financial criminals they invest in technology and use sophisticated tactics such as fake websites, extended payment chains and social engineering attacks.

Revolut expanded security features in 2023, including biometric authentication and alerts in the payment process. Created by Revolut, an artificial intelligence-based fraud detection system prevented last year total loss by customers GBP 475 million (almost PLN 2.4 billion).

The report distinguishes between frauds unauthorizedwhen criminals hack into an account without the victim's consent, and fraud authorized (e.g. scams), when criminals persuade the victim to help make payments.

According to the report, social engineering remains an important factor in enhancing the effectiveness of both types of fraud, but its impact is greater in the case of authorized fraud. Among Revolut customers who fell victim to fraudsters in 2023, the majority (62%) were subjected to unauthorized fraudbut the amount they lost was usually much smaller (an average of GBP 110, approximately PLN 555) than in the case of customers who succumbed to authorized fraud (an average of GBP 1,400, over PLN 7,000).

Card fraud, job offer fraud, investment fraud

Card fraudwhen criminals obtain payment card details, they constitute 98% of all cases unauthorized frauds, among which phishing attacks are a common method. The answer to this risk may be disposable virtual cards with a variable number; their data is destroyed after the transaction is completed.

They were a threat also physical theft. Although only 1% of victims experience them, this type of theft accounted for 39% of unauthorized fraud losses suffered by Revolut customers in 2023. Modern fraudsters operate in organized crime groups, are able to track a victim using their phone and capture passwords using surveillance techniques . Revolut advises you to pay attention to your surroundings when entering your PIN and not to save your login details on your phone.

Authorized fraud has become more and more common job offer scams. This method became very popular in 2023 – Revolut recorded an increase of 1,200% y/y, the victims here are mainly young people looking for employment.

The second type of scam that has become more popular in 2023 is investment fraud. In this case, there was an increase of 142% y/y. In most scams of this type, the lure is an offer to buy bitcoin or another popular cryptocurrency. The anonymity of cryptocurrency transactions attracts fraudsters who lure victims with high, guaranteed returns on crypto investments.

They are also popular shopping fraud, i.e. false offers to sell goods that never reach buyers. These types of scams remain the most popular type of fraud in each of the countries surveyed, accounting for 63% of reported fraud cases in 2023, but only 15% of the total value lost as a result of fraud.

And what was it like in Poland?

Among 33 European countries, Poland found ranked 32ndas one of two countries with the lowest number of fraud cases (according to the number of fraud victims per thousand customers). Fraud purchasing and investment were the most common frauds on the Vistula River

Although the number of victims of unauthorized fraud (69%) is more than twice as large as the number of victims of authorized fraud (31%), in 2023 the losses caused by authorized fraud in Poland were 19 times higher – an average of PLN 7,500 per person, compared to approximately PLN 350 per person in the case of unauthorized fraud. 99% of unauthorized frauds in Poland accounted for payment card fraudwith an average loss per person of PLN 364, while the share of physical theft and account takeover fraud was rather marginal.

The greatest threat when it comes to authorized fraud in Poland, in terms of the number of victims, is shopping fraud (applies to 69% of victims, average loss PLN 1,730 per person). The most dangerous type of fraud from the point of view of financial consequences are: investment fraud (concerning 15% of victims, average loss of almost PLN 21,000 per person).

Scams related to impersonating another person are the second largest source of losses in Poland (they concern 3% of victims, the average loss is approximately PLN 10,600 per person), and the third – fraud related to loans (applies to 3% of victims, average loss is approximately PLN 6,740 per person). Next in line are scams related to offering a job (applies to 4% of victims, average loss PLN 3,410 per person).

Number of frauds where the victims were seduced, the so-called romances, similarly to other countries, is small in Poland (it concerns 1% of victims), but the losses are noticeable (the average loss is PLN 1,850 per person).

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