For now the service is available to channel partners in the UK but will be rolled out in other unspecified markets at an unspecified time
Vodafone Carrier Services, the wholesale division of Vodafone Business, has launched a new service called Scam Signal. It helps businesses protect customers from impersonation scams, particularly Authorised Pushed Payment (APP) fraud.
JT Group, a global firm that offers connectivity and business solutions, and the analytics software house FICO are the first channel partners to offer Scam Signal with their mobile intelligence solutions. The service is available to other Vodafone Carrier Services’ other channel partners in the UK and will be rolled out in other countries “in due course”
APP fraud tricks someone into sending them money, often through impersonating representatives from banks, government departments or a family member. This sophisticated fraud can also deceive a victim into making advance payments for fraudulent investments, counterfeit goods and services, and extort money through a seemingly genuine romance or friendship.
APP fraud is a growing problem. For example, 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 legislation in the UK mandates that banks must reimburse customers for fraudulent transaction losses, hence financial institutions are looking at ways to defend against it.
Scam detection using this service improved by 30% after three months of a pilot with a UK bank, according to Vodafone.
Suite of APIs
Scam Signal is part of Vodafone’s suite of APIs which it describes as “a framework of computer rules that app developers and businesses can use to tackle online fraud and protect the digital identities of their customers”.
The Scam Signal API is contained within the secure Vodafone Identity Hub and uses analysis of real-time network data during transactions to detect and mitigate “social engineering” attempts to deceive and defraud account holders.
Fanan Henriques, Director of Vodafone Business International and EU Cluster, said, “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.”
Banks’ priorities
Scott Taylor, Principal Consultant, FICO, said: “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. Our recent survey 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.”
Vodafone says the introduction of the Scam Signal API-based service “builds on the successful launch of other APIs in several markets which improve online verification and security including SIM Swap and Number Verify”.
These APIs use common open standards defined by the global alliance CAMARA in conjunction the GSMA’s Open Gateway initiative.