In a significant step to address the rising issue of Authorised Push Payment (APP) fraud in the UK, GSMA and UK Finance have developed a framework that enables collaboration between the country’s mobile network operators and financial institutions. This initiative, known as Scam Signal, seeks to prevent APP fraud by enabling banks to analyse real-time network data to detect suspicious activity before fraudulent transfers are completed.
Scam Signal marks a joint effort involving major mobile network providers — EE, Virgin Media O2, Three, and Vodafone — alongside UK Finance member banks, such as NatWest. The system is powered by GSMA’s Open Gateway API, which securely connects banks with telecommunication data. By cross-referencing network activity, such as call patterns, with transaction data, Scam Signal can help identify instances where criminals impersonate legitimate organisations to deceive victims into authorising payments.
UK Finance data underscores the urgency for solutions like Scam Signal. APP fraud cost UK individuals and businesses £213.7 million in the first half of 2024 alone, with 35% of these scams originating from telecommunications channels. Fraudsters commonly exploit SMS and phone calls to impersonate banks and other trusted entities, leveraging social engineering tactics to manipulate victims.
Early development of Scam Signal was spearheaded by Vodafone, which piloted the technology in partnership with a major UK bank. The three-month pilot demonstrated promising results, improving scam detection rates by 30%.
Dianne Doodnath, Principal of Economic Crime at UK Finance, highlighted the collaboration’s significance: “Working with GSMA has been invaluable in making UK mobile network operators available to support and analyse 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, added: “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.”
Alongside the launch of Scam Signal, industry leaders, including Virgin Media O2, are advocating for a stronger governmental response to fraud prevention. Recommendations include the appointment of a dedicated fraud minister and the establishment of a centralised national policing body to manage fraud cases. Recent research indicates that fraud and scams affect a significant portion of the UK public, with 69% of respondents reporting attempted scams.
Scam Signal represents a proactive approach to combating APP fraud, enabling banks and mobile operators to work together to curb the losses inflicted on UK consumers. This cross-industry collaboration offers a promising step forward in protecting the public against increasingly sophisticated fraud tactics.
