Neobank Monzo unveils new anti-fraud options in case of cellphone theft

Neobank Monzo unveils new anti-fraud options in case of cellphone theft
Neobank Monzo unveils new anti-fraud options in case of cellphone theft

UK-based neobank Monzo has unveiled three app-based safety features, aiming to safeguard consumer accounts from criminals even within the case of cellphone theft.

The brand new safety instruments are designed to stop criminals from transferring or withdrawing quantities from Monzo accounts by providing a further layer of safety. The digital financial institution plans to formally roll them out over the approaching weeks.

To start with, clients will be capable of use the brand new “recognized areas” function to point a selected, secure location (like their dwelling or their office) the place they should be when transferring quantities of cash over a sure restrict.

Monzo will use monitoring know-how to establish if its buyer’s cellphone is in one of many chosen areas and block any transactions that fall outdoors the scope.

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Clients may designate a trusted good friend or member of the family, who additionally has a Monzo account, to double verify financial institution transfers or financial savings withdrawals over a sure restrict.

The trusted contact will be capable of see a number of the transaction particulars and flag to the financial institution any suspicious exercise. Monzo will put the transaction on maintain till the trusted contact confirms it’s secure.

Monzo Trusted Contact Feature
What’s the “trusted contact” function seems to be like. Credit score: Monzo
Monzo Trusted Contact Feature

Lastly, Monzo customers will be capable of obtain a secret QR code both to print and save or to retailer digitally on one other gadget. Then, they’ll scan the code with the Monzo app to verify giant transactions.

Monzo says the brand new options signify a primary throughout cellular banking, because the trade is grappling with dangerously high levels of fraud.

Based in 2015, Monzo’s mobile-only banking companies rapidly gained reputation and the startup achieved unicorn standing in 2018. The corporate navigated monetary challenges and vital losses during 2020-2021 however in the end rebounded.

Monzo stated it grew to become worthwhile in 2023 and now counts a complete of 9 million customers within the UK. In March, it raised £340mn in new funding, reaching a post-money valuation of £4bn. It reportedly secured an additional £190mn in Might.