South Africa has launched Scam Signal, a real-time fraud detection service designed to help banks prevent authorised push payment (APP) fraud.Â
What is authorised push payment (APP)? This type of fraud occurs when criminals manipulate individuals or businesses into authorising payments to accounts controlled by fraudsters. Because the customer approves the payment, banks often have limited ability to stop or reverse the transaction once funds are sent.
Who is making this happen? The South African deployment was made possible through collaboration between several major unnamed banks, MTN Chenosis, an API marketplace, global analytics firm FICO, Jersey Telecom, and the GSMA, the advocacy and lobbying organisation for the mobile communications industry.
Why this launch? Financial fraud continues to rise in South Africa, with losses approaching R2.7 billion ($168 million) in 2024. APP fraud is particularly difficult to tackle because it exploits human behaviour rather than technical system weaknesses, leaving traditional fraud controls less effective.
How Scam Signal works: The service is delivered through APIs that connect banking systems directly to mobile networks. It enables banks to assess fraud risk during live transactions by analysing mobile network data alongside banking data. The system identifies behavioural signals associated with social engineering scams (like suspicious call activity) while a payment is being made. This allows banks to intervene in real time by pausing transactions or sending alerts.
Will this work? The South African launch follows a successful rollout in the UK in 2024. According to the GSMA, Scam Signal reduced the number of scam victims by up to 40%, providing early evidence of the model’s effectiveness.
