It's natural to be slightly concerned when you deposit your money with a new bank, especially a fin-tech with less than 10 years of operating. That's why we are here to answer the question for you, is revolut safe?
In this insight, we will delve into the safety features of Revolut, offering an idea as to how they secure your money as well as some safety features that help you to remain vigilant against fraud.
Yes, Revolut is considered safe for users. Although not covered by the FSCS, they safeguard your money in Trust and implement strong data protection measures. Trading is secure, and features like fingerprint ID protect against scams.
Revolut is a leading digital banking service that started in 2015. It offers various financial services through its mobile app and card, serving over 15 million individuals and 700,000 businesses, making it a significant player in the fintech industry.
Revolut offers an array of services, including but not limited to:
Despite these impressive features, the question of safety remains paramount for users. So, let's delve into the specifics of how Revolut ensures its users' safety.
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Revolut is not a bank; it's an e-money institution (EMI). They protect your money using a method called "safeguarding," which is different from the protection banks offer through the Financial Services Compensation Scheme (FSCS).
In the UK, Revolut is authorised to provide e-money services, but it's not covered by the FSCS protection that banks have. So, if Revolut fails, you won't be eligible for the FSCS compensation.
Once Revolut receives your money, they have to keep it safe in specific accounts, investments, or sometimes with an insurance policy. This money will only be used for your benefit, and it should be available for repayment if Revolut faces financial problems.
Revolut is not FSCS protected, they use a method known as safeguarding to protect you rmoney. This is different from the FSCS. However, your money is safe with Revolut as your funds are held in Trust. If revolut went bankrupt, you won't be able to claim through FSCS however you can obtain your money through safeguarding.
Safeguarding is a set of rules that e-money institutions must follow to protect your money. If Revolut fails, these rules ensure that your money, which they were holding, will be paid back to you. It's important to trust the e-money institution you use because they are responsible for safeguarding your money.
The safeguarding accounts are protected by law, so if Revolut fails, the money in these accounts should be enough to pay back all customers. Other creditors of Revolut can't make a claim on this money. The only exception is to cover the cost of managing the company's closure.
The main difference between FSCS protection and safeguarding is that FSCS protection is provided by an independent organisation, and if a bank protected by FSCS fails, that organization will compensate eligible customers up to a certain amount (usually £85,000). Safeguarding, on the other hand, is handled by the e-money institution itself.
If Revolut fails, your claim will be paid from the safeguarding account as long as they have followed the rules correctly. However, this process might take longer than with a bank, and there could be some costs taken by the closure manager.
It's essential to note that the safeguarding rules apply only to your e-money, not money in the Revolut Savings Vault (which is covered by FSCS) or any cryptocurrency, commodities, or stocks you buy through the app. Those have separate protections or may not be protected at all.
Revolut employs stringent measures to ensure the confidentiality and security of your personal data. They store and process your private details using secure third-party servers, and all data transfers between Revolut mobile apps, servers, and third parties are 2048-bit SSL encrypted. Revolut also utilises data hashing, a process that anonymises personal data before sending it to advertising partners.
To open a Revolut account, users need to provide details such as their name, phone number, email address, date of birth, a selfie, and a photo of their identity document. As per anti-money laundering and counter-terrorism financing regulations, Revolut is required to retain this data for a minimum of six years.
Phishing scams are a common form of online fraud, where criminals attempt to deceive users into revealing their account details. Revolut has multiple teams dedicated to ensuring account safety and offers several features to protect customers from online scams. These include fingerprint identification, disposable virtual cards, the Sherlock anti-fraud system, and 3D Secure protection.
Revolut advises users to never share their account information or passwords, even if the request appears to come from Revolut. Genuine communication from Revolut concerning your account will only happen through the in-app chat support.
Revolut offers a variety of security settings that can be tailored to each user's needs. These include:
Revolut uses your phone's GPS to compare your last known location with the location of the payment terminal. If these do not match, the transaction is declined.
Users can disable magnetic strip payments to prevent their card from being cloned or used fraudulently.
By disabling ATM withdrawals, any transactions made at an ATM terminal will be blocked.
Users can disable e-commerce transactions to prevent any online payments.
Revolut also offers a Gambling Block feature, which allows users to automatically block card payments to gambling merchants. This block is not activated by default, but once enabled, any card payment attempted at a gambling merchant will be instantly declined.
Like any software, Revolut is not immune to glitches and micro bugs. However, it is crucial to note that as of March 30, 2022, Revolut has never been hacked. A common issue reported by users is difficulty logging in. Revolut advises users to check the Revolut service status, force close the app, or clear the app storage to resolve this issue.
Revolut is generally considered a safe platform for trading. As a licensed financial institution under the Financial Conduct Authority (FCA), Revolut is authorised to operate as an online bank and an investment firm. Thus, it provides a secure environment for users to trade stocks, commodities, and cryptocurrencies.
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In conclusion, Revolut has proven itself to be a trustworthy digital banking platform that prioritises user safety. With its robust security measures and data protection mechanisms, Revolut offers a secure, fast, and transparent digital banking solution that meets the needs of millions of people and businesses worldwide.
However, as with any financial platform, it is essential for users to remain vigilant and adopt best practices to safeguard their personal information and funds. After all, security is a shared responsibility. So, to answer the question, "Is Revolut safe?" - Yes, it is, as long as users also take the necessary steps to protect their accounts.
Revolut uses the "safeguarding" principle to protect your money. This involves depositing customer funds into a separate account with a credit institution, ensuring that in the event of Revolut's insolvency, the customer's claim is prioritised above all other creditors.
Revolut has several features in place to protect users from online scams. These include fingerprint identification, disposable virtual cards, the Sherlock anti-fraud system, and 3D Secure protection.
Revolut is generally considered a safe platform for trading. It is a licensed financial institution under the Financial Conduct Authority (FCA), authorised to operate as an online bank and an investment firm.
Read Related: How Does Revolut Work?
Stuart is an expert in Property, Money, Banking & Finance, having worked in retail and investment banking for 10+ years before founding Sunny Avenue. Stuart has spent his career studying finance. He holds qualifications in financial studies, mortgage advice & practice, banking operations, dealing & financial markets, derivatives, securities & investments.
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