GSMA and UK Finance have collaborated to introduce Scam Signal, a new tool designed to curb Authorised Push Payment (APP) fraud by leveraging mobile network data.
This solution, supported by major UK mobile operators – EE, Virgin Media O2, Three, and Vodafone – alongside UK Finance member banks like NatWest, aims to protect customers by identifying fraudulent bank transfers in real-time.
The Scam Signal solution operates through an Application Programmable Interface (API), enabling banks to use real-time mobile network data to detect suspicious transactions. By analyzing correlations between phone calls and unauthorized bank transfers, the API provides crucial insights to help banks intercept fraudulent transactions before funds are lost.
The need for Scam Signal is highlighted by recent data from UK Finance, which revealed that APP fraud cost UK consumers £213.7 million in the first half of 2024. A significant portion of this fraud, about 35%, originated from scams initiated through telecommunications channels, with criminals often posing as legitimate entities via SMS or phone calls.
To design a solution, GSMA and UK Finance facilitated discussions between telecom and banking representatives to determine how network data could help flag unusual activities. Through workshops and data modeling, the group identified patterns that aligned with fraud cases, laying the groundwork for Scam Signal. Vodafone spearheaded the early stages of development, completing a three-month pilot that improved scam detection by 30% at a major UK bank.
Dianne Doodnath, Principal of Economic Crime at UK Finance, emphasized the collaborative effort’s impact: “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 percent of losses.”
She added, “Working with 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 strong solution that should have a real impact by identifying criminal activity and increasing fraud detection.”
Brian Gorman, Fintech Lead at GSMA, expressed enthusiasm over the project’s success. “It is great to see the result of our members’ collaboration directly addressing that problem and providing significant benefit to the UK public – Scam Signal is already detecting fraudulent calls and stopping transactions to criminals. Delivering this solution was made possible by the close collaboration between our members and UK Finance and its members; and we are looking forward to continuing our valuable work together.”
The Scam Signal initiative builds on GSMA’s Open Gateway project, which has pioneered APIs across global markets to support fraud detection, including SIM Swap and Number Verify, and demonstrates how the API economy can unlock mobile network capabilities to protect consumers from online fraud worldwide.
