Troubled fintech firm Revolut is dealt another blow after news that a flaw in its payment system in the US allowed criminals to steal £18 million of its funds
Struggling fintech firm Revolut has taken another blow after it was revealed that a flaw in its payment system in the US allowed criminals to steal £18 million of its funds.
The money was drained for several months last year before it could close the loophole, the FT said.
The revelation puts even more pressure on a company once described by Chancellor Jeremy Hunt as a ‘shining example’ of Britain’s ‘global fintech sector’.
Blow: The revelation puts further pressure on a company once described by Chancellor Jeremy Hunt as a ‘shining example’ of Britain’s ‘global fintech sector’
In March it presented a bullish front when it reported its first-ever full-year profit when it released a delayed set of results for 2021 and said it expected a UK banking license to be granted ‘soon’.
But fortunes began to unravel almost immediately when accountant BDO said three quarters of its earnings could not be verified and may have been reported incorrectly. And four months later, the permit is still not there.
The latest glitch came about due to the difference between European and US payment systems, according to the FT. That meant that when certain transactions were declined, Revolut would falsely refund bills — effectively handing them over its own money — sources told the paper.
Revolut is said to have recovered some of the money, but still had a net loss of around £16m.
The company declined to comment.