APP fraud involves a criminal tricking someone into sending them money, often through impersonating representatives from banks, government departments, or even a family member.
They can also deceive a victim into making advance payments for fraudulent investments, counterfeit goods and services, or even extort money through a seemingly genuine romance or friendship.
Scam detection using this service improved by 30% after only three months of a successful pilot with a leading UK bank.
Vodafone’s first channel partners to offer Scam Signal is JT Group Limited, a global technology company that offer a range of connectivity and business solutions, who will work alongside global analytics software provider FICO.
Scam Signal is part of Vodafone’s suite of API’s providing a framework of rules that app developers and businesses can use to tackle online fraud and protect the digital identities of their customers.
It will be contained within the secure Vodafone Identity Hub and enable enable financial institutions to identify and thwart fraudulent bank transfers as they occur in real-time.
Leveraging advanced analysis of real-time network data during live transactions, it effectively detects and mitigates social engineering attempts aimed at deceiving and defrauding account holders.
“Vodafone is using the intelligence in our networks to help financial institutions to protect consumers by tackling fraud at its source. Scam Signal provides both end users and banks with an additional layer of protection against scammers and peace of mind that their transactions are legitimate,” said Fanan Henriques, director of Vodafone Business International and its EU Cluster.
“Scam Signal represents a significant breakthrough in the fight against Authorised Push Payment fraud, directly meeting our customers' needs. It’s an essential part of JT’s Mobile Intelligence solutions, providing streamlined identity verification, discreet authentication, and instant fraud protection. Together with Vodafone, we are addressing a critical need, responding to a more than 20% increase in fraud last year alone. Our joint innovative approach positions us as market leaders, the first to offer such comprehensive defences.’’
Peter Stock, JT Group's, global head of mobile intelligence strategy believes Scam Signal represents a significant breakthrough in the fight against APP fraud and auded the new solution as already integral to JTs Mobile Intelligence solutions.
“Together with Vodafone, we are addressing a critical need, responding to a more than 20% increase in fraud last year alone. Our joint innovative approach positions us as market leaders, the first to offer such comprehensive defences,” he said.
Statistics published by the UK government show that 1 in 15 people have fallen victim to fraudulent activity and in 2022, more than £485 million was lost to APP fraud.
New UK legislation mandates that banks reimburse customers for fraudulent transaction losses, which Vodafone attributes to the reason financial institutions are increasingly turning to network-based APIs for enhanced protection.
“By providing Scam Signal through our Customer Communication Services (CCS), we can help banks crack down on scams and reduce consumer harm by applying contextual data and analytics-driven decision intelligence,” said Scott Taylor, Principal Consultant, FICO.
A recent survey by FICO showed that 73% of banking customers rank fraud protection in their top three considerations when choosing a bank.
“Businesses that spot scam signals early can not only prevent losses but gain more customers through trust,” Taylor added.
Scam Signal is available to Vodafone Carrier Services channel partners within the UK, and other markets are set to follow.
Vodafone have already invested in offering other online verification and security API’s including SIM Swap and Number Verify. These APIs use common open standards defined by the global alliance CAMARA in conjunction the GSMA.
