Revolut launches AI scam detection tool

Revolut launches AI-powered tool to combat authorized push payment (APP) fraud. The feature leverages machine learning to identify high-risk transactions, prompting user education and potential intervention without restricting legitimate payments.

Revolut launches AI scam detection tool
Image: Uktech

Revolut, the global financial superapp, announced the launch of an AI-powered tool designed to combat authorized push payment (APP) fraud, a type of scam where criminals deceive users into transferring funds to their accounts.

The new feature leverages machine learning algorithms to analyze user transactions and identify those with a high risk of fraud. When such a payment is detected, the user is automatically directed to a "scam intervention flow" that provides educational information on common scam tactics and prompts them to reconsider the transaction.

This launch comes amid escalating concerns about APP fraud, with recent data indicating that nearly three-quarters of UK adults have been targeted and a significant portion have suffered financial losses. Furthermore, advancements in AI technology have raised fears of more sophisticated scams utilizing synthetic voices and deepfakes.

"We believe AI technology can be a powerful force in combating financial crime," stated David Eborne, Head of Fraud at Revolut. "Our new tool empowers users by providing timely information and intervention points, potentially preventing them from falling victim to scams."

The intervention flow represents a balanced approach that prioritizes both user autonomy and security. Unlike some financial institutions that resort to blanket bans on specific transactions, Revolut's AI solution allows legitimate payments to proceed while identifying and mitigating fraudulent attempts.

This balanced approach stands in contrast to other prominent banks like Starling Bank and Chase UK, which have opted for complete bans on crypto-related transactions due to perceived fraud risks.

By harnessing the power of AI responsibly, Revolut aims to create a safer and more secure financial environment for its users while fostering innovation and user freedom.