A British fintech company and neobank, Revolut, lost more than 20 million dollars last year due to a security vulnerability.
The main reason for the loss of funds is a problem caused by the difference between Revolut's payment systems in Europe and those in the U.S., which fraudsters took advantage of. The neobank mistakenly returned funds to the criminals' accounts when they declined the transactions.
The problem first came to light in 2021. And in early 2022, fraudsters began using the scheme to encourage people to make large purchases that were likely to be declined, after which the transaction amount was withdrawn from ATMs, according to The Telegraph.
Although Revolut said it was able to recover some of the stolen funds, it suffered losses of more than $20 million.
Revolut emphasized that the loss affected the company's corporate funds, not client deposits.
The systemic problem was discovered when one of Revolut's U.S. banking partners reported a shortage of funds, causing the neobank to send funds to the U.S. subsidiary to cover the loss.
Revolut did not fix the problem until the spring of 2022.
Earlier, we wrote about Revolut launching its services in New Zealand.
