Some of the UK’s top banks and mobile network operators have joined forces to launch a new tool designed to address APP fraud.

Scam Signal is launching as a collaboration between EE, Virgin Media O2, Three, Vodafone and UK Finance members, including NatWest.

The move comes nearly a month after the Payment Systems Regulator’s (PSR) new mandatory APP reimbursement scheme came into effect.

The new rules require all UK banks, building societies, payments and e-money firms to reimburse victims of APP fraud up to £85,000, with the scheme seeing more than 99 per cent of claims by volume covered.

Scam Signal, which is facilitated by an API, allows banks to better identify and stop fraudulent bank transfers by analysing real-time network data and identifying correlations between phone calls and fraudulent bank transfers.

The GSM Association (GSMA), the non-profit organisation that represents UK mobile networks, and UK Finance, which has more than 300 financial services members, convened the firms to deliver the new tool.

Data from UK Finance shows that £213.7 million was lost to APP fraud in the first half of 2024, with 35 per cent of losses originating from scams which started through telecommunication.

Initially GSMA and UK Finance began discussions between their members to understand how the high volumes of real-time mobile network data could help UK banking identify suspicious calls and other activities.

Then, through a series of workshops with mobile networks and bank representatives and the modelling and analysis of network data, correlations with fraudulent bank transfers were identified which formed the basis of the tool.

Early development of Scam Signal was spearheaded by Vodafone, with the mobile operator completing a successful three-month pilot project which resulted in scam detection improving by 30 per cent at a major UK bank.

“To address social engineering tactics used by criminals, cross-industry collaboration has once again proven critical," said Dianne Doodnath, principal of economic crime, UK Finance. "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.”

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