Revolut Confirms Data Breach Ahead of Israeli Market Entry

British fintech firm Revolut has confirmed a data breach exposing sensitive customer information to an unauthorized third party. The breach occurred after the company received fraudulent requests originating from a legitimate government email domain, a Revolut spokesperson told Reuters on Saturday. The company is preparing to launch operations in Israel as a "lean bank" after receiving a payment services license from the Israel Securities Authority last year, alongside three other international fintech firms.

"Upon discovering the incident, we immediately blocked the address and alerted the relevant government authority, as well as law enforcement, data protection, and financial regulators," the spokesperson stated. Revolut assured that its systems and customer funds were not compromised, though the exact number of affected individuals was not disclosed. However, crypto security firm ZachXBT claimed the scam targeted high-net-worth clients.

According to TechCrunch, the exposed data included customer birth dates, postal and email addresses, phone numbers, and copies of identification documents such as passports and driver's licenses. Revolut is reportedly planning a potential public offering with a valuation target of up to $200 billion, a significant increase from its $75 billion valuation in November.

The company, which operates without physical branches, serves over 80 million customers globally and functions as a bank in more than 30 countries. It has recently expanded into markets including India, Mexico, France, and the UAE. Earlier this month, Revolut also received tentative approval from U.S. regulators to establish the country's first bank, slated for launch in the first half of 2027.

In Israel, the Securities Authority hopes Revolut's license will enable significant expansion of its services, fostering competition with local banks. The license permits the transfer, conversion, and clearing of funds, as well as digital wallets. Companies will also be able to offer interest on customer deposits. Inbal Pollak, head of investment management at the authority, is responsible for issuing these licenses.