The lawsuit, filed by Tina Haralampopoulos in December 2023 as a proposed class action, states that Revolut failed to provide essential information to customers regarding the storage and duration of their biometric data.
Haralampopoulos alleges that Revolut collects and stores users’ biometric data without obtaining the required written consent as mandated by BIPA. Furthermore, the lawsuit claims that the company does not disclose third-party involvement in the biometric identity verification process. Additionally, Revolut is accused of lacking a publicly available policy outlining the retention period, purpose, and procedures for the destruction of biometric data.
Yahoo reports that, despite the legal challenge, Revolut has experienced growth in the US market since its entry in 2020. The same source reveals that the neobank has more than 35 million global personal customers, with the US CEO reporting over 840,000 users in the United States as of October 2023.
Representatives from Consumer Law Advocate PLLC suggested that given Illinois' status as the home of the country's third-largest city, the number of affected users in the state could be substantial, potentially exceeding 10,000. In the event of a violation of BIPA, plaintiffs stand to receive damages. The law stipulates USD 5,000 for each reckless violation over the preceding five years and USD 1,000 for each negligent violation over the same period.
BIPA was enacted in 2008 following the bankruptcy of Pay By Touch, a company providing fingerprint scanners for consumer payments in Illinois. The law aimed to protect citizens from unauthorised sharing of biometric data during bankruptcy proceedings, as highlighted by the Pay By Touch case.
Revolut declined to comment on the lawsuit, and the case against the company is ongoing. Notably, other entities in the financial and tech sectors, such as Meta, Coinbase, BAM Trading (Binance.US), and Alphabet, have faced BIPA-related legal actions or settlements in recent years.
Revolut also had some run-ins with the UK FCA. Specifically, in October 2023, Revolut attracted scrutiny from the UK’s Financial Conduct Authority over red-flag accounts that were restricted by the National Crime Agency. At the time, the company was in talks with the UK’s financial regulator on alleged failures that allowed money to be released from accounts that were flagged by the National Crime Agency as suspicious.
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