GSMA and UK Finance called on UK mobile operators and banks to offer Scam Signal, a new solution to combat fraud
November 5, 2024, London: GSMA and UK Finance have joined forces to provide a collaborative framework for leading UK mobile network operators and banks to develop and launch Scam Signal, a new solution to help tackle Authorized Push Payment (APP) fraud in the United Kingdom. Scam Signal is 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.
The new solution, delivered through an application programmable interface (API), enables banks to better identify and stop fraudulent wire transfers by analyzing real-time network data and identifying correlations between phone calls. and fraudulent bank transfers.
Data from UK Finance shows that £213.7 million was lost to APP fraud in the first half of 2024. This is 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 that began through telecommunications. This is where criminals contact victims via SMS and phones, often posing as legitimate organisations, such as a bank.
To help protect UK banking customers, GSMA and UK Finance have launched discussions among their members to understand how big volumes of real-time mobile network data could help UK banking identify suspicious calls. and other activities. Through a series of workshops with MNOs and bank representatives, and network data modeling and analysis, correlations with fraudulent bank transfers were identified which formed the basis of the Scam Signal solution.
The initial development of Scam Signal was led by Vodafone, with the mobile operator successfully completing a three-month pilot project resulting in an improvement in scam detection by 30 per cent at a major UK bank.
Dianne Doodnath, Head of Economic Crime at UK Finance, said: “Fraud remains a major problem, and our data shows that criminals stole more than £210 million through APP fraud in the first half of 2024. APP fraud from phone calls or SMS remains of higher value and It represented 35 percent of losses.
“To address social engineering tactics used by criminals, cross-industry collaboration has once again proven to be critical. Working with the GSMA has been invaluable in making UK mobile network operators available to support and analyze data with our financial services members. This collaboration has resulted in a robust solution that should have a real impact in identifying criminal activity and increasing fraud detection..”
Brian Gorman, fintech leader at GSMA, said: “It's fantastic to see the result of our members' collaboration in directly addressing that issue and delivering a significant benefit to the UK public – Scam Signal is already detecting scam calls and stopping transactions made to criminals. Offering this solution was possible thanks to close collaboration collaboration between our members and UK Finance and its members; and we look forward to continuing our valuable work together..”
As demonstrated by the success to date of the GSMA's Open Gateway initiative, the API economy is critical to unlocking mobile network capabilities and leveraging industry insights to support a growing range of services, including Identification and anti-fraud API. Around the world, from Brazil to China, from Germany to South Africa, we are seeing the mobile industry come together to launch universal network APIs like SIM Swap and Number Verify to combat online fraud and protect customers.
The GSMA Connected Fintech and Commerce community supports new initiatives such as API development through the GSMA Open Gateway, providing a platform to explore mobile capabilities in areas such as financial inclusion, anti-fraud solutions, payments, super apps, insurance, risk scoring credit and more. . Register your interest in the GSMA Connected Fintech and Commerce community here.
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About the GSMA
The GSMA is a global organization that unifies the mobile ecosystem to discover, develop and deliver critical innovation for positive business environments and social change. Our vision is to unlock the full power of connectivity so that people, industry and society thrive. Representing mobile operators and organizations across the mobile ecosystem and adjacent industries, the GSMA offers its members three broad pillars: connectivity for good, industry services and solutions, and outreach. This activity includes advancing policy, addressing today's biggest societal challenges, supporting the technology and interoperability that make mobile devices work, and providing the world's largest platform to convene the mobile ecosystem at the MWC and M360 series of events.
We invite you to learn more at gsma.com
About UK finances
UK Finance is the collective voice of the banking and finance sector. We represent more than 300 companies throughout the industry and act to improve competitiveness, support customers and facilitate innovation.
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UK Financial Press Office
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