The Daily Observer London Desk: Reporter- Victoria Smith
Troubled fintech firm Revolut has suffered a fresh blow after it was reported that a flaw in its payments system in the US allowed criminals to steal £18m of its funds.
The money was drained over several months last year before it was able to close the loophole, according to the FT.
The revelation piles further pressure on a business that was once described by Chancellor Jeremy Hunt as a ‘shining example’ of Britain’s ‘world beating fintech sector’.
Back in March, it presented a bullish front as it reported its first-ever annual profit when it published a delayed set of results for 2021 and said that it expected a UK banking licence would be granted ‘imminently’.
But its fortunes began to unravel almost immediately as auditor BDO said three-quarters of its revenues could not be verified and may have been misstated. And four months later the licence still has not come.
The latest glitch came about as a result of the difference between European and US payments systems, according to the FT. That meant that when certain transactions were declined Revolut would erroneously refund accounts – effectively handing them its own money – sources told the newspaper.
Revolut was said to have recovered some of the money but was still left with a net loss of around £16m.
