UK Banks Deploy Mobile Network Data to Combat Payment Fraud

Mobile operators and banks in the UK have launched a data-sharing initiative to reduce Authorised Push Payment (APP) fraud, which cost British consumers £213.7m in the first half of 2024.

The initiative, called Scam Signal, connects mobile network operators' real-time data with banking systems through an Application Programming Interface (API) - a software intermediary that allows different applications to communicate with each other.

The project brings together the GSMA, the global mobile industry association, and UK Finance, the collective voice for the banking and finance industry, along with the UK's four main mobile networks: EE, Virgin Media O2, Three and Vodafone. 

The collaboration emerged from discussions between the organisations about how real-time mobile network data could help identify suspicious calls and activities linked to fraud.

“Fraud remains a major problem, with our data showing that over £210m was stolen by criminals through APP fraud in the first half of 2024,” says Dianne Doodnath, Principal of Economic Crime at UK Finance. “APP fraud originating from telephone calls or SMS continues to be of higher value and accounted for 35% of losses.”

Technical Solution Targets Phone-Based Scams

The system analyses correlations between phone calls and fraudulent bank transfers, providing banks with data to identify potential scams before money leaves customer accounts. 

APP fraud occurs when criminals convince banking customers to transfer money to accounts controlled by fraudsters, often by impersonating legitimate organisations.

Telecommunications channels account for 35% of APP fraud losses by value, according to UK Finance data, with criminals frequently posing as bank representatives during phone calls or SMS messages.

The system operates through the GSMA's Open Gateway initiative, a framework for standardising network APIs. Similar anti-fraud APIs have been deployed globally, including SIM Swap detection and Number Verify systems in markets from Brazil to China. 

These capabilities form part of a growing range of services designed to combat online fraud and protect customers.

Early Results Show Promise

Vodafone conducted initial testing of the system through a three-month pilot with an unnamed major UK bank. The trial demonstrated a 30% improvement in scam detection rates. 

The implementation follows a series of workshops between mobile network operators and banks to identify correlations between network data and fraudulent transactions. These findings formed the foundation of the Scam Signal solution.

The development process involved detailed modelling and analysis of network data to establish patterns associated with fraudulent bank transfers. 

This collaborative approach brought together technical expertise from both the telecommunications and banking sectors to address a growing financial crime challenge.

Brian Gorman, Fintech Lead at GSMA, concludes: “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.”

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