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Fintech company Revolut has lost twenty million dollars because criminals could exploit an internal bug. In some payment processing issues, the online bank may not have refunded the customer’s money, but its own money.
That reports British business newspaper Financial Times is based on Insiders. The problem has been intermittent since 2021, stemming from differences between payment systems in Europe and the United States, according to three sources with knowledge of the matter.
A year later, criminal organizations discovered the technical error. They push people to make expensive purchases with Revolut that will be rejected. Then the ‘refund’ was collected through the ATMs.
Revolut discovered the mass fraud after a partner bank in the US alerted the British firm that it had less money than expected, insiders tell the FT. Revolut’s US subsidiary requested more money, after which the parent company resolved the issues in spring 2022.
Under pressure
The bank, which is also trying to grow in the Netherlands with its promise of a one-stop app for all things money, declined to comment on the matter to the Financial Times. The company reportedly recovered $23 million from criminals, but lost $20 million due to the problem.
According to the business newspaper, the issue is putting pressure on Revolut. The fintech company has recently seen several senior staff leave and is still awaiting a banking license in the UK.
Auditor BDO also issued a critical opinion on Revolut’s earnings because there was insufficient audit evidence to substantiate it.
Source: ANP/FT
