Viewing a single comment thread. View all comments

JayCroghan t1_jeaqzbq wrote

Reply to comment by marketrent in It's becoming increasingly clear that fintech has a fraud problem by marketrent

I’m not sure Fintech has a fraud issue, Cash App has a fraud issue. Head over to the Revolut sub and see the countless people posting about their accounts frozen. I bet Cash App doesn’t have that issue. I work in FinTech and it’s amazing how much KYC and AML goes on. Cash App seems to not bother with that which is why it isn’t in Europe because it’d be ran out again.

23

Veritas_Victoriam t1_jebkg0n wrote

I used to work at a fintech and now work at a bank that has a sponsorship program. Sure, some fintechs take BSA/AML seriously but many are pretty weak or inexperienced in that area and are primarily concerned with market growth as quick as possible. Fintechs are kind of a Wild West in the US and until there’s uniform regulation stands on them they’ll continue to run the gambit on being solid to bad at fraud/risk management

8

TheTrollCoach t1_jeblm0v wrote

I didn't have to answer any KYC questions or give my SSN when I set up my Venmo account. Haven't used Revolut so they might require that. Coming from a traditional bank FINCENs seem like the wild west.

5

JayCroghan t1_jebnscs wrote

For European fintechs like Revolut you need to prove who you are with your passport and a photo of a bill or bank statement to prove you’re a resident. Then they ask people who they need more info for proof of the source of the funds like bank statements or proof of receiving salary. I won’t use them because they freeze accounts so much I don’t want to have to deal with a months long argument to access my money.

4

marketrent OP t1_jec9h38 wrote

FCA’s Matthew Long wrote last month that the U.K. regulator “continue to see poor financial crime controls in some payments and e-money firms.”

That same regulator just put Revolut on notice that the company may be in breach of rules that state: “All adverts and promotions for financial services must be fair, clear and not misleading.”

1

JayCroghan t1_jedplzd wrote

So they’re in trouble for misleadingly advertising their products, not mass fraud. Got it. I hate Revolut but I know they do a fuck ton of KYC and AML.

1