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- Fake job scams increased by 1,200 percent last year, and investment scams by 142 percent
- Revolut’s fraud detection system prevented potential fraud amounting to 550 million euros
- Croatia is one of the countries with the least fraud recorded in Europe, ranking 27th in terms of the number of fraud victims per thousand users
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Revolut, a global financial application with over 40 million users worldwide and more than 400,000 in Croatia, today published its first report on financial crime and consumer security, which contains exclusive insights into fraud. The report, based on extensive internal research and data analysis, aims to shed light on the growing fraud industry globally and provide clear warnings to protect users. Revolut plans to regularly update this data to track fraud trends, according to the statement.
Global Fraud Report
Revolut’s report reveals a growing threat from fraud, which cost people worldwide over a trillion dollars in 2022, according to GASA (Global Anti-Scam Alliance & ScamAdviser, Global State of Scams report). Revolut’s data shows that this phenomenon continued to grow last year, with the fraud trend experiencing significant changes, marked by the strengthening of fraudulent techniques aimed at extracting sensitive account and personal data for financial gain. Financial criminals have intensified their efforts, applying sophisticated tactics such as deceptive websites, extended payment chains, and social engineering attacks to trap victims.
To combat these threats, Revolut has remained proactive in keeping ahead of the dynamic fraud trend in 2023. It has implemented enhanced security features, including biometric authentication and proactive payment process alerts, and has also prioritized educational initiatives on fraud through its in-app learning program to equip users with the necessary knowledge and tools to protect against malicious actors.
Last year, Revolut’s patented fraud detection system, based on cutting-edge machine learning and artificial intelligence, prevented potential fraud amounting to 550 million euros. Croatia is one of the countries with the least fraud recorded in Europe, ranking 27th in terms of the number of fraud victims per thousand users.
Unauthorized Fraud vs. Authorized Fraud
The report distinguishes between unauthorized fraud, characterized by account hacking against the victim’s permission, and authorized fraud, which involves deceptive practices that convince the victim to make a payment.
According to the report, social engineering remains a significant driver for both types of fraud, but has a stronger effect when used to carry out authorized fraud.
Woody Malouf, head of the financial crime department, commented:: Protecting our users from the growing threat of fraud globally is of utmost importance at Revolut. Our first report on financial crime and consumer security not only highlights the rapid development of fraud but also helps individuals to be cautious. With our advanced fraud detection systems and commitment to innovation, we empower our users to protect their finances and navigate the digital world with confidence.
Trends in Unauthorized Fraud
Card fraud: accounts for 98 percent of all fraud cases, with common tactics including attempts at identity theft. To protect against these techniques, Revolut’s one-time virtual cards offer a higher level of security as they can be used only once, resulting in a significantly lower fraud rate compared to traditional cards.
Physical theft: despite accounting for one percent of fraud cases, physical theft has led to 39 percent of all losses due to unauthorized fraud experienced by Revolut users in 2023. Today, fraudsters operate in structured criminal networks, observing how people use their phones and using monitoring techniques to obtain their codes. To reduce this risk, it is important to always be aware of your surroundings when entering your PIN and not to store login credentials on your phone.
Trends in Authorized Fraud
Fake job scams: increased by over 1,200 percent during 2023, targeting young individuals seeking employment opportunities.
Investment scams: increased by 142 percent last year. Most of these scams are related to investments in Bitcoin or other cryptocurrencies. The anonymity of investing in cryptocurrencies has attracted fraudsters offering higher guaranteed returns.
Purchase scams: remain the most popular type of fraud in all countries, accounting for 63 percent of all reported fraud in 2023, but less than 15 percent of total stolen funds.
Revolut tips for avoiding purchase fraud
Shop with reputable and trusted merchants – check online reviews. Genuine and reliable sellers will generally have good reviews, not a mix of bad or no reviews.
Ask questions – be cautious if the seller avoids sharing information or pressures you to make a quick payment. Request a personal or video preview of high-value items and obtain relevant documentation to verify the seller’s ownership.
Choose a secure payment method (such as Revolut one-time virtual cards!) – always use a debit or credit card. Fraudsters may ask you to pay by bank transfer instead of by card. Transfers are difficult to trace, and in the event of fraud, we have limited options for recovering your money.
Never ignore Revolut’s alerts in the app, especially if the seller pressures you to make a quick payment.
Check the authenticity of the website – type the address into your web browser. Do not follow links in unsolicited emails or SMS messages. Once you access the website, check if it looks relatively professional. Colors, logos, or appearances that do not seem right may indicate that the website is fake.
And finally, always remember – if it seems too good to be true, it probably is, say Revolut.
