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Revolut: Is your money really safe?

Authors
  • Patrick Maflin
    Name
    Patrick Maflin
Revolut, the popular fintech app that offers a range of services from digital banking to cryptocurrency trading, has revolutionised the way many people manage their finances. Its user-friendly interface, low fees, and flexibility make it appealing to millions around the world. However, recent news has surfaced about increasing cases of fraud and customer service issues, raising concerns about the safety of holding large sums of money with the platform. 
As Revolut continues to expand rapidly, it’s crucial to be aware of the potential risks. We want to take this opportunity to warn our clients about the implications of storing significant amounts of money in Revolut, particularly due to these recent developments around fraud. 
Rising Fraud Cases at Revolut 
Revolut has been facing growing scrutiny following a surge in fraud-related complaints. Some customers have reported that unauthorised transactions drained their accounts, and they faced difficulties in contacting Revolut to resolve the issue or obtain a refund. Fraudsters, using increasingly sophisticated methods, have targeted Revolut customers, and in many cases, victims unknowingly granted access to their accounts through phishing or social engineering scams. 
Unlike traditional banks, Revolut's customer service structure—heavily reliant on in-app chat—has been criticised for being slow and difficult to access in urgent situations. Many customers reported frustration over long wait times and limited options to speak with a representative directly, especially when they needed immediate help during a fraud incident. 
Regulatory and Industry Concerns 
In light of the growing number of complaints, Revolut’s handling of fraud cases has caught the attention of regulators, including the UK Financial Ombudsman Service (FOS). While Revolut is authorised by the Financial Conduct Authority (FCA) and complies with financial regulations, the rising fraud incidents have raised questions about its security protocols and customer support efficiency. 
Traditional banks often have more robust fraud detection systems and dedicated teams to quickly address fraudulent transactions. While Revolut has taken steps to improve its anti-fraud technology, the rapid growth of its customer base and its digital-first approach may have created vulnerabilities that fraudsters can exploit. 
Lack of Full FSCS Protection 
Another key concern is that Revolut is not fully covered by the Financial Services Compensation Scheme (FSCS), which protects customers of UK-authorised banks for up to £85,000 if their bank fails. While Revolut holds some of its clients' funds in segregated accounts, this is not equivalent to FSCS protection. This leaves Revolut users exposed to greater risks in the event of fraud or if the company encounters financial difficulties. 
Steps You Can Take to Protect Yourself 
  1. Limit the Amount Held in Revolut: While Revolut offers convenient features for day-to-day spending or travel, it’s safer to limit the amount of money you store in the app. Use Revolut for smaller transactions or short-term transfers and consider keeping larger sums in traditional banks that offer FSCS protection. 
  2. Enable Security Features: Make use of Revolut’s security tools, such as two-factor authentication (2FA), card freezing, and real-time notifications for transactions. These can help reduce the risk of unauthorized access. 
  3. Be Wary of Scams: Always be cautious of unsolicited messages, emails, or calls asking for personal details or account information. Fraudsters often use social engineering tactics to trick users into giving them access to their accounts. 
  4. Backup Emergency Funds: Ensure you have access to funds elsewhere in case of an issue with your Revolut account. Revolut's support system may not respond as quickly as you need in a crisis, so having alternative banking arrangements can offer peace of mind. 
Revolut remains a convenient option for managing daily finances, but the recent rise in fraud cases highlights the need for caution. If you’re using Revolut, we recommend not holding large sums on the platform for extended periods. Consider using more traditional banking methods for safeguarding significant funds, particularly if fraud and customer service concerns continue to affect users. Your financial security is our priority, and staying informed about potential risks is an important step in protecting your assets. 
If you have any questions or need further advice, please don’t hesitate to contact us. https://marineaccounts.com/contact-us