FINANCIALCRIME ANDCONSUMER
SECURITYREPORT 2023

Revolut Group Holdings Ltd

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Contents

1

Introduction

2

What is fraud?
2.1.

Types of Unauthorised Fraud

2.2. Types of Authorised Fraud
2.3. Other types of fraud

32023 Global fraud & scam trends
3.1.

Authorised Fraud

3.2. Unauthorised Fraud

4

How Revolut is fighting fraud
4.1.

5

How to protect yourself from fraud
5.1.

6

Protecting our customers

How to identify a scammer

References
6.1.

About the data

6.2. Appendix
6.3. World Fraud Charts

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Introduction
Woody Malouf, Head of Financial Crime at Revolut on
the inaugural Financial Crime and Consumer Security
Insight Report:
Today we are publishing, for the first time, our Financial
Crime and Consumer Security Report. The aim of thisreport is simple; to shed light on the intricate web offinancial scams and frauds which pose increasing threats
to individuals around the globe. This report details thetypes of fraud most prevalent in the market; highlights
the Revolut data that supports this; showcases the work
being done by Revolut to stop fraud and protect
customers; and provides useful tips customers can use toprotect themselves from these ruthless criminals. Fraud is
an industry wide problem, impacting people and financial
institutions across the globe, so our ultimate goal is tospread awareness and enhance the protection of
everyday people.

Fraud has grown exponentially over the last few years at a global scale. In fact, over USD $1 trillion was lost to scams
worldwide in 2022, according to a study carried out by the non-profit organisation Global Anti-Scam Alliance1. Thereis no silver bullet, nor any one institution that can solve the fraud problem. But with the right people and technology
in place, financial institutions can fight back and hold at bay these ruthless criminals.

Revolut invests heavily in the safety and security of its customers, protecting them from many types of fraud andscams. 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.

To counter the ever changing tactics of fraudsters, Revolut is constantly strengthening its set of advanced, AI-based
tools and techniques to prevent, detect, and disrupt fraudulent activity. The technology used by fraudsters to con
innocent people is incredibly sophisticated and therefore our systems need to be even more so. There is an “armsrace” taking place between financial institutions and fraudsters, and we are constantly evolving to win this. We are ascommitted as ever to protecting our customers from the fraudsters of today, as well as tomorrow.

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As a global fintech, Revolut meticulously documents thetype of fraudulent transactions that are recorded on its
systems. This is done in order to better understand, andand in the future prevent fraud so that Revolut, as well asother financial institutions, can better protect ourcustomers in the future.
This report sheds light on the type of fraud Revolut
recorded in 2023 and the key takeaways from that data.
More specifically, the report examines Revolut data
across its markets on:•

Authorised vs Unauthorised Fraud•

Authorised Fraud•◦

Blackmail◦

Impersonation Scam◦

Invoice Scam◦

Investment Scam◦

Job Scam◦

Loan Scam◦

Purchase Scam◦

Relationship Scam◦Tax ScamUnauthorised Fraud◦

Card fraud◦

Phone/Device theft◦

Account takeover•

Social Media origins•

Country specific data

What is fraud?
Fraud is grouped into two overarching categories: Unauthorised Fraud (also known as a “Fraud”) & Authorised Fraud(also known as a “Scam”).
•

Unauthorised Fraud/Fraud occurs when sophisticated individuals aim to access others' money, sensitive
information, or valuable assets, often by impersonating someone else. This type of fraud involves a fraudster
gaining unwarranted access to someone's personal details. These fraudsters may use the stolen information
to hijack accounts, conduct unauthorised payments, or apply for credit cards under the victim's name.

•Authorised Fraud/Scam are tricks or traps set by fraudsters. Authorised Fraud involves deceptive practices
where individuals might encounter seemingly amazing deals or encounter imposters posing as trusted
entities. These scammers utilise various methods, including fake phone calls, texts, emails, or social media
posts, to convince people to make payments or transfer money to the fraudster’s account.

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Types of Unauthorised Fraud
There are many types of Unauthorised Fraud. The three key ones customers are often exposed to are:•Physical Theft - This is when fraudsters steal the device or phone that holds a customer's banking apps andare then able to to make payments or transfer out funds.

•

Account Takeover (ATO) - This is when fraudsters are able to take control of someone's account to makepayments or transfer out funds. This can be done remotely by gaining access to the customer’s password andaccount information or by hacking into the phone, often using third-party software downloaded by the user.

•

Unauthorised Card Fraud - This is when a fraudster gets access to a customer’s card details, and then uses it
to make transactions that the customer might not be aware of.

Types of Authorised Fraud
Authorised Fraud (or Scams) are categorised based on the specific tactic used to defraud the customer. Here arecommon fraud tactics and how they work:•

Purchase Scams: This is the oldest trick in the book, and still popular today. Scammers trick victims withbogus websites that promise unrealistically low-priced products that are not delivered. Rental scams are also
considered a type of purchase scam, where fraudsters list fake rentals and ask for upfront deposits frompotential renters.

•

Investment Scams: Fraudsters convince users to transfer funds or cryptocurrencies by offering fake
investment opportunities with lucrative returns. Investment news articles or social media posts endorsed bycelebrities that highlight opportunities to make high returns on their money through crypto investments are acommon scam tactic.

•

Job Scams: Scammers post fake online job openings or reach out via messaging apps for job openings. As
part of the application, they either request money upfront or require personal financial information to defraud
the victim. Common tactics ask people to pay upfront for paid training, administration, and setup fees, or topurchase required equipment, such as a laptop or phone.

•

Impersonation Scams: Scammers pretend to be bank officials, government agents, or even bank agents
contacting you about unpaid fees or loans. They might sound serious, asking for immediate payments or
personal details to fix supposed issues.

•

Relationship/Romance Scams: Scammers create a new romantic connection with the victim, building up trust
over the course of weeks or months. Fraudsters will then ask for some money using an emergency or travelplans as an excuse and then disappear.

•

Invoice Scams: Also known as mandate fraud, is when fraudsters pose as a subscription service, merchant,or service provider, and tell you that the payment information has changed. They may use fake invoices totrick you into making a payment to their accounts. This type of fraud typically only comes to light when the
genuine merchant or service seeks payment.

Revolut Group Holdings Ltd

5•Tax Scams: Scammers pretend to be tax officials or law enforcement, making urgent calls about unpaid
taxes. They might even imply that you will be arrested soon if you do not make the payment urgently.

•

Loan Scam: Fraudsters offer cheap loans to their victims, with minimal collateral and application fees needed.
However, once the victim has paid the application fee or deposit, the victim never receives the loan.

•

Blackmail: Fraudsters threaten to expose private details or data, threaten loved ones, or cyber bully victims
into making payments.

Authorised Fraud can also be grouped into two categories, based on the payment method used: Card Fraud andAuthorised Push Payment Fraud (APP). This distinction is useful for the industry, as bank transfers are hard to trace,and victims have limited chances of getting their money back.

Other types of fraud
Triangle Scams are a combination of two or more types of scam, used by fraudsters to avoid detection. In triangle
scams, there are two victims; Victim A is defrauded into making a payment to Victim B’s account, and Victim B is
subsequently defrauded into making a second likely bigger payment to the fraudster’s account. This chain of
payments makes it difficult for the authorities to identify and trace the fraudster.
Here’s an example of how a triangle scam combining two investment scams may operate:

Revolut Group Holdings Ltd

62023 Global fraud & scam trends
Authorised Fraud

17%

14%

15%

100%

11%

% of APP Scam victims by typology
76%

69%

65%

51%

64%

90%

18%

90%

100%

% of amount loss in APP scams by typology

44%

60%

60%

50%

50%

70%

40%

70%

80%

41%
43%

80%

52%

21%
32%

14%

12%

40%

40%

17%

24%

12%

12%

30%

30%

5%
12%

10%

24%
22%

20%

20%

20%

7%

8%

—%

10%
2%

4%
2%

Q1 2023

Q2 2023

Purchase Scam
Job Scam
Loan Scam
BlackmailTax ScamRevolut Group Holdings Ltd

2%
2%

2%

Q3 2023 Q4 2023 FY 2023
Investment Scam
Impersonation Scam
Relationship Scam
Invoice Scam
Other

—%

10%

6%

5%

6%

6%
3%

7%
7%

7%
5%

3%

3%

3%
3%

4%
2%

Q1 2023

Q2 2023

Purchase Scam
Job Scam
Loan Scam
BlackmailTax Scam

5%

4%

2%
2%

7%

4%

Q3 2023 Q4 2023 FY 2023
Investment Scam
Impersonation Scam
Relationship Scam
Invoice Scam
Other

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Key findings
Job scams increased by 1,200% over the course of
the year, the most of any type of scam, from a
relatively little used scam:

Impersonation scams saw a notable and consistent
drop in money lost to this scam over the course of2023:

The prevalence of job scams increased significantly in
2023. Job scams represented only 1% of all fraudcases, as well as 1% of the overall value of all money
lost to scams in Q1 2023. By Q4 2023, these figuresrose to 12% of all cases and 21% of the overall value
lost to scams, increasing 1,200% and 2,100%
respectively. Similar to other types of fraud, job scams
target those looking for an opportunity to boost theirearnings. As the cost of living and high inflation takes
hold, we have found the number of reported job scams
dramatically increase, with criminals preying on thoseseeking a legitimate way to better their, in particularyoung and often inexperienced job seekers.

Whilst impersonation scams consistently made up
between 5-7% of reported fraud cases in 2023, thepercentage of money lost to this scam drop
throughout the year. In Q1 2023, impersonation scams
made up 32% of money lost to scams, before dropping
to 20% in Q4 2023, a 37% drop over the course of theyear. This was likely the result of improved customer
education against this type of scam, resulting in
scammers looking for other methods to con victims.

Purchase scams were the most popular type ofscam, constituting 64% of all reported scams in
2023, but their use is declining:

Tax scams are no longer a a prevalent scam type,decreasing significantly by the end of 2023:
The number of tax scams in 2023 dropped from 4% toless than 1% of total reported cases by the end of2023. Customers have become more savvy to spotting
tax scams, with threats of imprisonment by fakeofficials failing to have a notable impact.

Purchase scams were the most reported scam acrossevery Revolut market. However, we observed anotable decline in the number of reported purchasescams across 2023, dropping from 76% of all cases in
Q1 to 51% by Q4. This was likely the result of improved
fraud security, resulting in scammers looking for othermethods to con victims. Additionally, purchase scams
were usually small scams with lower monetary losses,
representing only 15% of the amount lost to scams in
2023, despite being the most comms scam.
Investment scams are becoming more prevalent,
increasing by 142% over the course of the year,
accounting for the highest percentage of money lostto scams:
Investment scams accounted for the highest reported
losses in 2023. Because of this, the prevalence of thisscam increased, with investment scams representing
7% of all reported cases in Q1, but growing to 17% in
Q4. We observed that social media platforms inparticular were a considerable driver for investment
scams, with 58% of all money lost to scams thatoriginated on Meta platforms.

Revolut Group Holdings Ltd

8Unauthorised Fraud% Victims by typology
95%
Q1 2023

3%
2%

Q2 2023

2%
2%

Q3 2023—%
2%

Q4 2023—%
1%

FY 2023

1%
1%

97%

98%

99%

98%

Card Fraud

Account Take Over

Physical Theft% Loss by typology
Q1 202335%

Q2 202317%

34%

Q3 2023

48%

22%

44%

38%

Q4 2023

31%

41%

FY 2023

24%

37%

—%

10%

20%

30%

Card Fraud

Revolut Group Holdings Ltd

31%

35%

24%

40%

50%

Account Take Over

39%

60%

70%

80%

90%

100%

Physical Theft

9Key findings
Physical Theft was responsible for 39% of all
unauthorised fraud losses in 2023, despite only
impacting 1% of total fraud victims:
With more and more data and information stored on
mobile devices, it is no wonder that physical thefts
result in the highest avg. loss per customer than any
other fraud. Across the world, news outlets reported asurge in pickpocketing (USA2, Netherlands3, Spain4),
with London in particular seeing a phone stolen every
6 minutes.5

98% of unauthorised fraud victims were affected bycard fraud:
A common tactic for card information theft is Phishing:a form of cyber attack, delivered via email. These
malicious messages typically appear to be fromlegitimate sources (such as banks, credit cardcompanies, or online retailers) with the intent to collectpersonal and financial information. Disposable cards
meant for one-time use have been adopted by theindustry to reduce the risk of card fraud.

Revolut has been swift to respond to the growing
threat of physical theft, with biometrics at theforefront of the solution, where passwords fail.
Biometric data such as face scans can be used toprotect financial interests in the case of physical theft.
Educating customers on the threat of physical thefthas also become paramount, urging customers toremain vigilant to “shoulder surfers” and encourage
users to regularly update their passcodes and not to
use the same password across multiple applications.

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How Revolut is fighting fraud
Protecting our customers
At the forefront of Revolut’s security measures is its proprietary fraud detection system, employing cutting-edgemachine learning and artificial intelligence methodologies. Revolut estimates that in 2023, it prevented over £475
million in potential fraud against its customers. This robust system meticulously analyses an impressive volume of up
to 590+ million customer transactions each month, actively searching for indicators of potential fraud. Staying aheadof the dynamic fraud landscape, Revolut continually monitors its evolution and responds swiftly by implementing
enhanced customer security features:

Virtual disposable cards protect
against unauthorised card fraud
The single-use virtual cards can be used to shop online —and once a payment has been made, the details aredestroyed so they can’t be skimmed or re-used bycriminals. Single-use virtual cards have fraud rates a thirdof that experienced with other cards, according to
Revolut data. Learn more about virtual cards here.

RAT detection technology
Biometric industry estimates6 find that 12% of all fraud in
EMEA comes from Remote Access Trojan (RAT) attacks.
In comparison, at Revolut this share is less than 1%.
Revolut’s advanced machine learning-based monitoring
systems and biometrics features limit fraudsters’ accessto funds in case of RAT attacks. This year, Revolut
improved system capabilities to detect any compromised
apps.

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Flexible early warning systems against
scams yield results
Revolut’s dynamic fraud intervention systems identify
likely scams before the payment is completed, using
innovative approaches to break the spell. The system ishighly responsive, with Revolut adjusting its transaction
time warnings specifically to counter job scams as soon
as they emerged as a major threat in August. These
interventions can uncover scam-specific red flags, and in
90% of cases are able to prevent fraud.

Elevating scam education
comprehensive initiatives

through

Revolut’s in-app Learn program now includes scamawareness campaigns, empowering customers with theknowledge and tools necessary to stay one step ahead of
malicious actors.

Biometric interventions to protect user
funds in cases of physical theft
Revolut’s fraud detection machine learning models
identify any risky transactions and leverage biometrics toverify customer identity for risky transactions. It offers asmooth selfie-check feature that ensures that even if
someone gets a hold of your phone and password, youraccount with Revolut will be protected.

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How to protect yourself from fraud
Here are a few tricks to stay one step ahead of scammers
1.

Stay alert. Always question things that seem too good to be true.

2.

Trust your instincts. If something feels off, take a step back and investigate.

3.

Use secure channels. Stick to trusted websites and platforms for transactions.

4.

Report suspicious activity. If something seems suspicious, let Revolut know — we're here to help 24/7,
directly from the app.

How to identify a scammer
Scammers often use tricks to lure users into sharing
personal information or moving their money. There area few telltale signs, including:

•

•
•

•

•

Inconsistent stories. If what they say doesn't
add up, or changes frequently, customers
need to be wary.
Urgent requests. Scammers might pressure
customers for immediate action or ask themto keep things secret.
Suspicious links, emails, or text messages.
Customers need to double-check anythingthat seems odd or unfamiliar.

Fortunately, there are ways customers can protect
themselves. Here’s a checklist that customers canconsult before they make any decisions about sending
their money.
•

Secure transactions. Customers must use
secure payment methods and verify theauthenticity of the recipient.
Update the Revolut app. This is essential for
reinforcing Revolut protective measures.
Customers can also enable auto-updates intheir device settings to guarantee they arerunning the most secure version.

Something to remember: Revolut will only
communicate through their official in-app chat support
asking to move customer’s money to a different
account for safety reasons – never via phone. If
Revolut needs to call a customer, they will only do soonce they have scheduled it with the customer via thein-app chat.
•

For more information on fraud prevention,
explore Revolut Online resources.

Research and verification. Before sharing any
personal details, customers should research
the sender or company, check for contact
details, read reviews, and verify with trusted
sources.

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References
1.
2.
3.
4.
5.
6.

Global Anti-Scam Alliance (GASA) & ScamAdviser. (2022). 2022 Global State of Scams report.
CBS News. (n.d.). NYPD pickpocket unit targets New York City holiday thefts.
De Telegraaf. (n.d.). Zakkenrollers overspoelen de Nederlandse straten en evenementen.
Ministerio del Interior, Gobierno de España. (2023). Estadísticas de criminalidad.
BBC News. (2023). London's fight against pickpockets.
BioCatch. (2023). EMEA Fraud Intelligence Annual Report 2023.

About the data
This report focuses exclusively on data pertaining to retail fraud reported in the calendar year 2023, unless specified
otherwise. All analysis and findings are confined to fraudulent activities impacting retail customers being defrauded.
Data on fraud involving business customers or acquiring fraud is not included in this report. The foundation of ourreport is data sourced internally from Revolut. Insights drawn are reflective of Revolut's consumer base and may not
represent the broader industry. For the purposes of consistency, only fraud reported within 42 days is included in thereport.

Appendix
Table 3.1.1% of victims by typology of APP Fraud
APP Authorized Fraud

Q1 2023

Q2 2023

Q3 2023

Q4 2023

FY 2023

Other

3%

2%

2%

7%

4%

Tax Scam

3%

4%

—%

—%

1%

Invoice Scam

—%

—%

—%

—%

—%

Blackmail

—%

—%

1%

—%

—%

Relationship Scam

1%

1%

2%

1%

1%

Loan Scam

3%

3%

5%

5%

4%

Impersonation Scam

5%

8%

7%

7%

7%

Job Scam

1%

3%

6%

12 %

6%

Investment Scam

7%

10 %

12 %

17 %

12 %

Purchase Scam

76 %

69 %

65 %

51 %

63 %

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Table 3.1.2% of amount lost by typology of APP Fraud
APP Authorized Fraud

Q1 2023

Q2 2023

Q3 2023

Q4 2023

FY 2023

Other

2%

2%

1%

1%

1%

Tax Scam

5%

4%

—%

—%

2%

Invoice Scam

—%

—%

—%

—%

—%

Blackmail

—%

—%

—%

1%

—%

Relationship Scam

1%

1%

2%

1%

1%

Loan Scam

1%

1%

2%

1%

1%

32 %

24 %

22 %

20 %

24 %

1%

5%

14 %

21 %

12 %

Investment Scam

39 %

52 %

43 %

40 %

44 %

Purchase Scam

18 %

11 %

17 %

14 %

15 %

Impersonation Scam
Job ScamTable 3.2.1% of victims by typology of unauthorised Fraud
Unauthorised Fraud

Q1 2023

Q2 2023

Q3 2023

Q4 2023

FY 2023

Card Fraud

95 %

97 %

98 %

99 %

98 %

Account Takeover

3%

2%

—%

—%

1%

Physical Theft

2%

2%

2%

1%

1%

Table 3.2.2% of amount loss by typology of unauthorised Fraud
Unauthorised Fraud

Q1 2023

Q2 2023

Q3 2023

Q4 2023

FY 2023

Card Fraud

35 %

34 %

38 %

41 %

37 %

Account Takeover

17 %

22 %

31 %

24 %

24 %

Physical Theft

48 %

44 %

31 %

34 %

39 %

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World Fraud Charts
UK

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IRELAND

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ROMANIA

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POLAND

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FRANCE

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GERMANY

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ITALY

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SPAIN

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HUNGARY

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PORTUGAL

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