Revolut introduces AI-powered card scam detection feature

OpenBankingExpo
15 Feb 2024

UK-based fintech Revolut has unveiled a scam detection feature, powered by artificial intelligence (AI), to safeguard its customers from card scams.

This additional layer of security technology aims to counter Authorised Push Payment (APP) scams, where fraudsters deceive users into transferring money to other accounts.

Harnessing the power of machine learning, Revolut’s new AI scam feature effectively “interrupts” scammers and prevents customers from falling victim to their schemes.

The new AI card scam feature is now live in the Revolut app and available to customers worldwide.

Developed internally by Revolut’s financial crime team, the feature can assess the likelihood that a customer is being prompted to make a card payment as part of a scam. In such cases, the payment is declined, safeguarding the customer from further fraudulent transactions.

Revolut then guides the customer through an in-app scam intervention flow, where they provide additional details about the transaction they were attempting. This process helps determine if they are under the influence of scammers, who may have exerted undue influence, or cast a “spell” on them.

Additionally, specific scam educational stories are presented to prompt customers to think critically before proceeding with the payment. Revolut also offers customers the opportunity to engage in a chat with a fraud specialist to further investigate any potential scams.

Since the introduction of the card scam detection feature, Revolut has recorded a substantial decrease of 30% in fraud losses resulting from scams involving money sent for investment opportunities.

David Eborne, head of fraud at Revolut, said: “We’re very excited to be launching our new AI-scam feature which implements advanced technology to interrupt fraudsters taking advantage of everyday people.

“We’ve invested heavily in the product to ensure that customers can continue to spend and send their money safely. For example, a growing number of banks are increasingly restricting, or heavily limiting, the ability to make card payments to crypto and investment websites.”

He added: “With this advanced feature, rather than completely block those transactions, we ensure that customers who want to perform legitimate payments continue to do so, but also intervene to protect those who are being guided by criminals to make fraudulent ones.”

Recent analysis by Revolut of its UK customer base found that in 2023, 60% of reported scam cases originated from three major social media platforms: Facebook, Instagram, and WhatsApp.

Furthermore, 33% of the total value of all money lost to scams could be traced back to Meta platforms across the same period. The use of Meta platforms as the primary source of scams is steadily rising, reaching 66% in the second half of 2023, compared to 52% in the first half of the year.