Vodafone Business launches a financial scam prevention API

Scam Signal is especially targeted towards Authorised Pushed Payment (APP) fraud. We’re told scam detection improved by 30% when using this service after three months of a successful pilot with a UK bank.

APP fraud involves a criminal tricking someone into sending them money, often through impersonating representatives from banks, government departments, or a family member, explains the release. They can also deceive a victim into making advance payments for fraudulent investments, counterfeit goods, or extort money ‘through a seemingly genuine romance or friendship.’

Apparently APP fraud is a growing problem in the UK. The release cites statistics published by the UK government claiming more than £485 million was lost to APP fraud in 2022, and 1 in 15 people have fallen victim to fraudulent activity. New UK legislation mandates that banks reimburse customers for fraudulent transaction losses, so financial institutions are increasingly turning to network-based APIs for more protection, we’re told.

In this pursuit, Scam Signal enables financial institutions to ‘identify and thwart’ fraudulent bank transfers as they occur in real-time by analysing network data during live transactions. This means it ‘effectively detects and mitigates’ social engineering attempts aimed at scamming people.

“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 EU Cluster.

JT Group, which provides connectivity and business solutions, and analytics software firm FICO are the first channel partners to offer Scam Signal with their mobile intelligence solutions.

Peter Stok, Global Head of Mobile Intelligence Strategy, JT Group, said: “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.’’

Meanwhile, Vodafone Business has also launched a new brand campaign called ‘Your Business Can’, designed to promote its suite of tools designed for SMEs looking to tech up various aspects of their operations.

“This campaign is a testament to our continued commitment to ensuring small businesses have knowledge of and access to the best solutions to help them unlock untapped profitability, efficiency, and productivity in today’s increasingly competitive landscape - all of which are available to purchase directly with Vodafone,” said Jo Wedlock, Vodafone Business Brand Marketing and Communications Director.

The buzz around network APIs and their supposed ability to unlock new revenue streams for operators has been around for a couple of years now – though as yet bountiful veins of gold don’t seem to have materialised. Tools like Scam Signal, while perhaps not flashy or likely to transform the fortunes of Vodafone significantly, do however represent a practical application of the sort of network exposure many in the industry have been putting on a pedestal, particularly at last year’s MWC.