Security News > 2023 > July > Flaw in Revolut payment systems exploited to steal $20 million
Organized criminal groups exploited a flaw in Revolut's payment systems and made off with $20+ million of the company's money, the Financial Times reported on Sunday, citing people with knowledge of the situation.
Revolut is a privately held financial technology company that offers a variety of services to over 30 million customers around the globe.
"The problem stemmed from differences between European and US payment systems, which meant that when certain transactions were declined Revolut would erroneously refund accounts, handing them its own money," the business publication explained.
The criminals "Encouraged" individuals to make expensive purchases that would end up being declined, but the flaw made it so that Revolut would erroneously make refunds to accounts.
FT says that the discovery happened after "a partner bank in the US notified the fintech that it was holding less cash than expected," and the failure to unearth the ongoing fraudulent scheme in time ended up costing Revolut over $20 million.
"There are preventive measures that companies can take. Regular audits and system checks will quickly identify any flaws or discrepancies. Proper synchronization and communication between different systems of the company is also vital," he added.