UK Finance and GSMA, a global organisation that represents mobile operators and the mobile network ecosystem, have teamed up to deliver a new solution designed to help tackle authorised push payment (APP) fraud in the UK.
Together, UK Finance and GSMA will provide a “collaborative framework” for mobile network operators and banks to develop and launch ‘Scam Signal’.
The new solution is launching 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.
Delivered via an API, ‘Scam Signal’ works by analysing real-time network data and identifying correlations between phone calls and fraudulent bank transfers, enabling banks to better identify and stop fraudulent bank transfers.
According to UK Finance data, £213.7 million was lost to APP fraud in the first half of 2024.
In terms of the value of losses, 35% of APP losses originated from scams which started through telecommunication.
GSMA and UK Finance began discussions between their respective members to understand how the high volumes of real-time mobile network data could help UK banks identify suspicious calls.
According to the press statement, through a series of workshops involving mobile network operators and bank representatives, as well as modelling and analysis of network data, the correlations were revealed, forming the basis of the new solution.
Vodafone led the early development of ‘Scam Signal’, completing a three-month pilot project, which saw scam detection improve by 30% at a major UK bank.
Dianne Doodnath, principal of economic crime at UK Finance
Dianne Doodnath, principal of economic crime at UK Finance, said: “To address social engineering tactics used by criminals, cross-industry collaboration has once again proven critical.
“Working with GSMA has been invaluable in making UK mobile network operators available to support and analyse data with our financial services members.”
She added: “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, said: “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.”
GSMA’s Open Gateway initiative is described as “a framework of common network APIs designed to provide universal access to operator networks for developers”. According to GSMA, the global mobile industry has been working together to launch universal network APIs, such as ‘SIM Swap’ and ‘Number Verify’ in an effort to combat online fraud.
Further reading: Pay.UK expands CoP to boost ‘collective defences against fraud’
