![]() This allows us to gather more information around the payment, helping us determine if the customer is subject to a scam attempt. Furthermore, for payments we deem at a heightened risk of scam activity, we require the customer to enter a “forced chat” flow with a Revolut agent prior to making a payment. Our interactive stories flow, educating customers on the risks of making payments through tailored in-app stories, is 95% effective at preventing customers from falling victim to fraud.Revolut’s spokesperson provided a detailed rundown of its fraud protection system: I suspect that they feel that the controls in relation to fraud are lesser on those accounts.”Ī screenshot shared with Refundee by a scam victim, showing a fraudster encouraging them to open a Revolut account “It’s typically banks like Revolut where fraudsters will tell a victim to open up those accounts in order to make payments through that. Will Ayles, McFadden’s cofounder at Refundee, tells Sifted that some fraudsters specifically encourage victims to open accounts with neobanks to carry out these transactions. “These fraudsters know the apps inside out so they can prep people in advance and they say, ‘Oh, by the way, when you go to send this payment, you will receive this warning, and you just need to click on that.’ It looks like they're trying to automate everything, even when it's not necessarily appropriate.” McFadden thinks that automated in-app warnings are less effective than phone calls at preventing fraud, as scammers know how to game such controls. Monzo and Starling both tell Sifted that they call up customers who have attempted to make a suspicious payment, though Revolut didn't mention calling customers when describing its fraud prevention processes.Ī Revolut spokesperson tells Sifted it uses “innovative fraud protection techniques, utilising real-time machine learning models coupled with a suite of interactive warning flows”. Not all digital banks will call up customers some use in-app warnings instead. McFadden says that traditional banks will try to prevent suspicious payments by blocking the payment, and then requiring the customer to speak with the bank on the phone. Transaction monitoring is a security protocol used by banks to monitor suspicious activity and recipient accounts historically associated with fraud. ![]() It says it's worked with more than 1,400 fraud victims in the UK since launching in June 2021. The growth in fraud complaints could also be because of processes around “transaction monitoring”, according to Stuart McFadden, cofounder of scam support startup Refundee. When high-value payments are made, additional security measures are required that slow down the process.” In-app warnings In response to this criticism, Monzo says: “The better tech and more instant alerts and interactions at neobanks allows you to instantly see and check or confirm payments, whereas at legacy banks a fraud could go unnoticed for days or weeks - limiting the chances to stop it early and recover your money.”Ī Starling spokesperson says: "When a customer wants to pay someone new, multiple security details are required and in-app warnings about fraud are shared, adding friction to the experience and reducing the success of APP attacks. They are pushing people into making large and impulsive payments.” “With neobank technology, you can be caught off guard, allowing scammers to take full advantage. Traditional banks’ mobile apps are renowned for having sluggish and poor-performing systems,” he argues. Therefore, it’s much easier to make instant payments. “Neobanks often have much better UI (user interface) than traditional banks. From H2 2019 to H1 2022, Revolut grew from 1.4m to 5.75m account holders in the UK, Monzo from 2m to 7m and Starling from 2.14m to 3.34m.Ī Revolut spokesperson tells Sifted that it’s “important to note that, whilst fraud complaints made to the FOS are at a three-year high, customer numbers for neobanks are also the highest they’ve ever been”. The number of fraud complaints from neobank customers has, in part, increased because the digital banks’ customer base has grown. Starling works extremely hard to combat them.” Increasing customer numbers The country’s Office for National Statistics also found that the number of people falling victim to fraud has increased by 25% over the past two years.Īshley Hart, director of fraud and financial crime at Monzo, tells Sifted that “a significant increase in fraud across the entire banking industry unfortunately means we’ll inevitably see an increase in people falling victim to fraudsters”.Ī spokesperson from Starling Bank says that “financial scams are a scourge and we understand how very distressing they are to customers. According to fraud prevention organisation CIFAS, fraud has increased by 17% in the UK over the past year, including for traditional bank customers. It isn’t only neobanks that are seeing increased attacks by scammers.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |