The Lithuanian-based bank is under the direct supervision of the European Central Bank (ECB), whose review has found some of Revolut’s processes to be lacking. As a result, Revolut has vowed to invest more in financial crime prevention and recruit more staff.
The European Central Bank (ECB) has a supervisory arm to keep the banking system in the Eurozone “safe and sound”. Established in 2014, it directly supervises the largest banks in participating countries and works with national supervisors who oversee the smaller banks in their countries. The ECB has powers to grant and withdraw banking licences and sanction organisations that break the rules.
Following a ‘significance assessment’ at the end of 2023, the ECB ruled that Revolut Holdings Europe UAB and its subsidiary Revolut Bank UAB (Revolut) were ‘significant’ and would fall under the ECB’s direct supervision from 1 January 2024. ‘Significance’ is measured by size (assets valued over €30 billion), economic importance, cross-border activities, and whether it has requested or received funding to safeguard its financial stability.
Given how quickly Revolut has grown throughout Europe since its launch nine years ago, it is not surprising that the ECB and its UK equivalent, the Prudential Regulation Authority (PRA), have been closely scrutinising the bank’s operations.
Revolut NewCo Ltd (a UK subsidiary of Revolut Group Holdings Ltd) obtained a UK banking licence only recently (July 2024) after a three-year wait. It came with restrictions and the company is now in a ‘mobilisation’ stage, “which is to allow new banks like Revolut to complete the build out of their UK banking operations ahead of launching in the market”.
According to the Revolut website:
“Until the mobilisation stage is completed and the UK Bank is launched, Revolut’s UK customers will remain with Revolut Ltd, a UK e-money institution regulated by the FCA, where their funds are safeguarded in accounts in line with the Electronic Money Regulations 2011.”
Revolut and financial crime
+ −In April this year, Revolut published its first-ever Financial Crime and Consumer Security Report, based on “extensive internal research and data analysis”. The report analysed data from 2023 relating to:
- Unauthorised fraud (such as card fraud, physical theft of phone/device and account takeover)
- Authorised fraud (including impersonation scams, investment scams, relationship scams and more)
The report found that:
- Employment scams surged over 1200%
- Investment scams (mostly involving cryptocurrency) increased by 142%
- 63% of all scams were purchase scams, but these only made up 15% of the overall value lost
Woody Malouf, Head of Financial Crime at Revolut, said:
“Revolut invests heavily in the safety and security of its customers, protecting them from many types of fraud and scams. Our 2,500-strong, 24/7 financial crime team employs advanced AI-based algorithms, along with biometric tools and cybersecurity measures which in 2023 prevented over £475m of potential fraud against our customers.”
Revolut has said it will invest more in recruiting people for its crime prevention team to tackle the fraudsters.
Like many other banks and payment companies in the UK, Revolut has been investigated and found liable for customers’ financial losses through fraud and scams. These cases include unauthorised transaction fraud and impersonation APP fraud. Some of the cases were referred to the Financial Ombudsman Service (FOS) for investigation. FOS is an independent body set up over 20 years ago to settle disputes between financial businesses and their customers and has the power to award compensation.
Getting help with a Revolut fraud claim
+ −If you bank with Revolut and find yourself a victim of an Authorised Push Payment scam, for which they refuse to reimburse you for your financial losses, we can assist you in claiming the compensation you are rightfully owed.
Similarly, if your Revolut account has been compromised and you have lost money due to Unauthorised Transaction fraud, please contact us as you may still have the basis of a claim.
We offer our services on a no-win, no-fee basis; you will only be charged if we successfully secure reimbursement from your bank.
Sarah Spruce, Partner and Head of the Professional Negligence team at TLW Solicitors, says:
“Banks are expected to know much more about fraud and scams than the general public, and they should have robust processes in place to protect customers and their money. If banks such as Revolut are found to be lacking in their online scam warnings and fraud prevention processes, there are ways to make a claim and get back what is rightfully yours. Don’t be ashamed or embarrassed that you became the victim of financial fraud – as we know from the numerous cases we deal with at TLW Solicitors, it is far more common than you might think.”
Contact TLW Solicitors
+ −If you, a colleague, a family member, or your business have been a victim of an APP scam or unauthorised transaction fraud on your Revolut account and your bank refuses to refund your money, get in touch for a confidential, no-obligation conversation today. We can explore whether you might be eligible to make a ‘no-win, no-fee’ refund claim. TLW Solicitors is currently helping many Revolut customers with their claims, here is an example of a client who we recently helped after she was scammed.
You can call us on 0800 169 5925, email info@tlwsolicitors.co.uk or complete either the ‘Request a Callback’ or ‘Start Your Claim’ forms below.
It is important to get advice as soon as possible as strict time limits can apply.
Minimum case values apply.
Meet our Team
Meet Sarah, who heads up our experienced Professional Negligence team.
Sarah and her colleagues are on hand to help with your claim.
