Revolut's fraud crisis deepens with €700,000 lawsuit 😳📱; Strong holiday growth fuels BNPL sector 🛍️📈; Credit card spending surges despite rising delinquencies and record debt levels 👀💳

FinTech is Eating the World, 3 December

Hey Everyone,

Good morning & happy Wednesday! Today’s issue is really interesting as we’re going to look at Revolut's fraud crisis, which is getting deeper now with €700,000 lawsuit (what it’s all about, what it means for the FinTech giant & the broader industry + some bonus reads inside), strong holiday growth, which is fueling BNPL sector (quick recap of the latest numbers & what’s next + bonus deep dives into Klarna & Affirm), and credit card spending that’s surging despite rising delinquencies (brief look at the latest numbers, what they are telling us and what’s next). So let’s just jump straight into the interesting stuff 🌶️

Revolut's fraud crisis deepens with €700,000 lawsuit 😳📱

The news 🗞️ FinTech giant Revolut faces mounting challenges as a significant fraud lawsuit in London highlights broader concerns about the platform's security measures and fraud prevention capabilities.

The case centers on a €700,000 ($735,880) theft where a Serbian energy company, Terna Energy Trading, fell victim to a sophisticated scam involving a fraudulent account allegedly belonging to a 22-year-old Czech individual.

Let’s take a quick look at this and see why it matters.