Revolut launches machine learning technology for compliance and sees a 30% reduction in card fraud

Since launching its disposable virtual cards back in March, mobile banking company, Revolut, has seen a 30% reduction in card fraud, and has built a new state of the art algorithm for detecting compliance-related crime.

Primarily aimed at customers who frequently make one-off online purchases, the card details connected with Revolut’s disposable virtual cards are instantly destroyed as soon as payment has been successfully processed and new card details are automatically generated within the Revolut app.

This means that, even if the credentials of a large online retailer are compromised, Revolut customers are protected as the card details that they would have used to transact are no longer in existence.

In line with the company’s plan to build “tech machines” to scale and enhance Revolut’s compliance function, Revolut has also announced that it has built a new state of the art algorithm to apply personalised limits to customers based on their transactional activity.

In addition to the rigorous onboarding screening process, which includes taking a selfie, submitting personal identification documents and running background checks against global databases, Revolut has now assigned individual risk ratings for all of its 2 million plus customers. That means dynamic and personalised risk profiles based on individual spending habits and no more stagnant and arbitrary account limits.

This new risk model goes above and beyond classical customer risk assessments through its profiling of external parties such as individual bank accounts, ATMs and ecommerce merchants, allowing Revolut to detect, analyze and lock down in real time any complex transaction patterns and networks potentially related to criminal activity such as money laundering and terrorist financing.

The recent security breach at TicketMaster, where an unknown third-party managed to gain access to their customer’s personal information, was a sharp reminder to all of us here at Revolut as to why we prioritised the launch of disposable virtual cards. We believe that it’s our duty to use innovative technology to create new ways to protect our customers against fraud, and these new figures show that it’s working.

Nik Storonsky, CEO, Revolut