Global Scam Signal Initiative Aims to Combat Financial Fraud through Telecom Collaboration

Strategic Insights -

As mobile-enabled scams continue to surge worldwide, Jersey Telecom (JT) and FICO, in collaboration with the GSMA, are working together to accelerate the global rollout of Scam Signal, a fraud prevention solution using real-time telephony data to detect and stop scams. The initiative urges mobile network operators to adopt the solution to protect consumers from significant financial loss. Scam Signal has already shown promising results in reducing scam losses and false positives in the UK, with UK banks experiencing a 41% reduction in scam victims and a 44% decrease in fraud losses.

Key Takeaways:

  • The Scam Signal solution uses real-time telephony data to detect and stop scams, helping to protect consumers from significant financial loss.
  • The solution has already shown promising results in the UK, with a 41% reduction in scam victims and a 44% decrease in fraud losses.
  • Scam Signal is designed to combat authorized push payment (APP) fraud, where victims are tricked into sending money to criminals.
  • The solution is the first network API solution to combine real-time telephony network data with customer and payment information during live transactions.
  • Delivered through FICO Platform, Scam Signal draws on real-time signals from mobile and landline networks to identify suspicious activity.
  • The solution maintains a direct connection with the banks to enable any additional action to protect customers from harm.
  • APIs such as those provided under the GSMA Open Gateway initiative allow financial institutions to securely access mobile network data in real-time.
  • The GSMA will support the initiative by running a program to unite mobile operators with the financial services industry and help its members design, build, and launch standardised fraud-related APIs.
  • The program aims to facilitate universal adoption of the APIs and consistent protection for consumers.

Statistics:

  • Scams have cost the global economy over $1 trillion in 2024 (Source: Global Anti-Scam Alliance).
  • Authorized Push Payment (APP) fraud is recognised as the number one global fraud threat.
  • 41% reduction in the number of people scammed using Scam Signal in the UK (Source: FICO).
  • 44% decrease in fraud losses using Scam Signal in the UK (Source: FICO).
  • 55% reduction in false positives (payments flagged as fraud that are in fact genuine) using Scam Signal in the UK (Source: FICO).
  • $3.5 billion is the estimated global financial cost of APP fraud in 2024 (Source: Juniper Research).

Sources:

  • https://www.businesswire.com/news/home/20251028297085/en/
  • https://www.gsma.com/solutions-and-impact/gsma-open-gateway/gsma-open-gateway-api-descriptions/
  • https://www.fico.com/en/latest-thinking/solution-sheet/scam-signal-real-time-scam-detection-and-prevention
  • https://www.jtglobal.com/
  • https://www.fico.com
  • Juniper Research report on APP fraud
  • Global Anti-Scam Alliance reports on scam costs