With card not present (CNP) fraud on the rise, U.K.-based financial technology start-up Revolut has a new product aimed at tackling online card fraud. Revolut’s app lets customers open a current account in 60 seconds. The mobile-only banking service has unveiled a “disposable” virtual card that wipes a user’s card details and introduces new details each time they make a payment.
This changes the online game as usually when people make an online payment, they enter card details which online retailers can sometimes hold onto. But fraudsters can use this data to make transactions.
According to data analytics company FICO, card not present fraud rose from 50 percent of gross fraud losses for European firms to 70 percent in 2016. CNP fraud is a practice whereby a fraudulent transaction is made without a card being physically present.
Revolut’s app offers currency exchange at the rate that banks lend to each other. It has applied for a European banking license, following in the footsteps of many of its peers in securing regulatory approval.
The company’s new feature will work alongside its current security features, which include location- based security, the option to freeze and unfreeze physical cards and to disable functions like contactless and swipe payments.
By Jamie Barrie