Award-Winning Scam Detection Solution
To tackle the increasing wave of scams, global analytics leader FICO has teamed up with Jersey Telecom (JT) to launch a pioneering solution. Their Customer Communications Service Scam Signal has been honoured with the Silver Medal in the Fraud Impact Award for Best Scam and APP (Authorized Push Payment) Fraud Prevention by Datos Insights. This accolade highlights the innovative approach of using telephony signals to combat scams effectively.
Combating Authorized Push Payment Fraud
The Scam Signal product represents a significant advancement in the battle against Authorized Push Payment (APP) fraud. APP fraud occurs when consumers are deceived into making authorised payments to scammers, often through sophisticated social engineering techniques. FICO and JT’s collaboration has led to the development of a solution that leverages telephony data to detect these fraudulent activities in near real-time.
Innovative Technology in Action
The Scam Signal integrates real-time analysis of telephony data with customer and payment information. By collaborating with leading UK banks, FICO and JT have identified key telephony signals that indicate potential scams. This enables direct, real-time intervention during transactions to assess whether a payment should proceed.
Clare Messenger, Head of Mobile Intelligence Solutions at JT, commented, “The Scam Signal product addresses a significant and growing problem. Authorized Push Payment fraud continues to escalate globally, with losses in the UK alone reaching £460 million in 2023.”
Collaborative Development and Privacy Compliance
JT’s partnership with the GSMA (Global System for Mobile Communications Association) and UK Mobile Network Operators has been instrumental in developing this solution. The collaboration ensures that mobile network insights are accessed within a privacy-compliant framework, safeguarding personal data while effectively combating fraud.
FICO’s analysis has uncovered strong correlations between mobile phone usage patterns and the likelihood of scam activities. For instance, customers may be manipulated into making payments during a phone call with a fraudster.
Advanced Real-Time Detection
The Scam Signal employs advanced real-time analysis of network data, combined with customer and payment details, to detect and prevent scams. It supports a range of technologies, including 2G, 3G, 4G, 5G, VoLTE, and Wi-Fi calling. Additionally, efforts are underway to extend support to UK landlines.
Adam Davies, Vice President of Product Management at FICO, stated, “Integrating Scam Signal within FICO Customer Communications Service allows banks to deliver personalised, omni-channel messages that counteract scams effectively. These messages can be embedded into conversation flows that adapt in real-time based on the customer’s actions.”
Positive Impact on Fraud Prevention
The product is already being piloted by major UK high street banks, with promising results. The first bank to implement the Scam Signal reported a 41% reduction in scam incidents, a 44% decrease in fraud losses, and a 55% reduction in false positives (legitimate payments flagged as fraud).
FICO and JT’s Scam Signal is poised to make a significant impact in the fight against fraud. With its advanced technology and real-time capabilities, it represents a major step forward in protecting consumers from scams.
