GSMA has joined forces with UK Finance to provide a new solution to allow banks to identify and stop fraudulent bank transfers by analysing real-time network data and identifying correlations between phone calls and fraudulent transfers.
Scam Signal will help address Authorised Push Payment (APP) fraud in the UK and be delivered via an Application Programmable Interface (API).
It will be launched as a collaboration between mobile network operators EE, Virgin Media O2, Three, Vodafone and UK Finance members, including NatWest, participating on behalf of the banking industry.
Data from UK Finance shows that £213.7 million was lost in the first half of 2024 to APP fraud, where criminals manipulate customers into transferring money to a criminal.
In terms of the value of losses, 35 percent of APP losses originated from scams which started through telecommunication.
This is where criminals contact victims through SMS and telephone purporting to be from legitimate organisations, such a bank.
To help protect UK banking customers, GSMA and UK Finance began discussions between their members to understand how the high volumes of real-time mobile network data could help UK banking identify suspicious calls and other activities.
Through a series of workshops with MNO and bank representatives, and the modelling and analysis of network data, correlations with fraudulent bank transfers were identified which formed the basis of the Scam Signal solution.
Early development of Scam Signal was spearheaded by Vodafone, with the mobile operator completing a successful three-month pilot project which resulted in scam detection improving by 30 per cent at a major UK bank.
Dianne Doodnath, Principal of Economic Crime at UK Finance, said: “Fraud remains a major problem, with our data showing that over £210 million was stolen by criminals through APP fraud in the first half of 2024.
APP fraud originating from telephone calls or SMS continues to be of higher value and accounted for 35 per cent of losses. “This collaboration has resulted in a strong solution that should have a real impact by identifying criminal activity and increasing fraud detection.”
