Innovative combination of telephony signals and card data delivers first real-time solution to spot scams with early pilot reducing the number of people scammed by 41%
In the fight against the growing problem of financial scams, global analytics software leader FICO has collaborated with Jersey Telecom (JT) to develop a powerful solution that enables direct, near real-time intervention to protect customers.
“Authorised Push Payment fraud is where consumers are tricked into sending authorised payments to scammers”
FICO and JT worked with leading UK banks to identify the most relevant telephony signals that indicate an active scam. The FICO® Customer Communications Service Scam Signal, currently available in Jersey, the UK and Spain, and with plans to expand to other markets, is the first real-time application of telephony data being used with customer and payment data to tackle the issue of Authorised Push Payment (APP) fraud.
“Authorised Push Payment fraud is where consumers are tricked into sending authorised payments to scammers,” explained Clare Messenger, Head of Mobile Intelligence Solutions at JT. “This type of fraud is growing around the world; 2023 losses in the UK alone reached £460million. To protect customers from being caught by such scams, the new FICO and JT solution enables direct intervention with the customer to quickly determine if a payment should proceed.”
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To build the solution, JT worked with the GSMA (Global System for Mobile Communications Association) and the UK Mobile Network Operators to access various mobile network insights within a privacy compliant framework that protects customers’ personal data. FICO analysis found strong correlations between a customer’s mobile phone behaviour and the likelihood that a scam is taking place. For example, a customer may be actively coached through security or manipulated by a fraudster into making a payment during a mobile phone conversation.
The Scam Signal uses advanced analysis of real-time network data together with customer and payment data, during live transactions, to effectively detect and mitigate social engineering attempts aimed at deceiving and defrauding account holders. The Scam Signal can incorporate this data from across 2G, 3G, 4G, 5G, VoLTE and Wi-Fi calling for multiple mobile network operators and is currently being extended to support UK landlines.
“The integration of Scam Signal within the FICO Customer Communications Service allows banks to present customers with personalised, omni-channel and highly contextualised messages that break the scammer’s spell for high-risk activities,” said Adam Davies, vice president of product management at FICO.
“These messages can be built into conversation ‘flows’ that respond in real-time to the actions the customer takes. For example, if a customer hesitates or looks to progress a payment, additional messages can be sent, and different options offered, such as suggesting delaying the payment or offering to speak to a fraud prevention specialist.”
Major high street banks in the UK are implementing the product, with the first to pilot it reporting that they reduced the number of people scammed by 41%, decreased fraud losses from scams by 44% and lowered false positives (payments flagged as fraud that are in fact genuine) by 55%.
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