FICO and Jersey Telecom Unite to Combat APP Fraud Effectively

FICO and Jersey Telecom Join Forces Against APP Fraud

In a significant move to counter the pressing issue of financial scams, global analytics giant FICO has teamed up with Jersey Telecom (JT). This collaboration is focused on delivering a state-of-the-art solution aimed at offering direct, near real-time intervention to safeguard consumers from the rising tide of Authorised Push Payment (APP) fraud.

Understanding APP Fraud

Authorised Push Payment fraud occurs when unsuspecting individuals are tricked into authorizing payments to scammers. According to experts from Jersey Telecom, the prevalence of this form of deceit is escalating across various nations. In the UK alone, the losses attributed to this type of fraud reached approximately £460 million in a recent year. Recognizing the urgency of this situation, FICO and JT have developed a new advanced solution that allows immediate intervention with customers to assess whether a payment is secure before it proceeds.

The Role of Telephony Signals

The collaboration between FICO and JT involved partnering with prominent banking institutions in the UK to pinpoint vital telephony signals. These signals are crucial indicators of potential scams in progress. The innovative FICO Customer Communications Service Scam Signal leverages telephony data alongside customer and payment information to create a sophisticated approach to identify and prevent APP fraud.

Privacy Compliant Framework

JT's partnership with the GSMA and other mobile network operators enhances their ability to analyze mobile network data while ensuring compliance with privacy regulations to protect users’ personal information. FICO's analyses have revealed distinct behavioral patterns among customers that may suggest fraudulent activities. For example, conversations on mobile devices can often lead individuals to inadvertently comply with fraudsters' requests.

The Functionality of the Scam Signal

The Scam Signal employs advanced analytics, combining real-time network data with payment details during transactions. This integrated approach allows for effective detection and prevention of social engineering ploys aimed at defrauding customers. The technology supports a wide array of mobile networks, including 2G to 5G systems, and is currently being adapted to work with UK landline connections.

Personalized Customer Interventions

By integrating the Scam Signal into the FICO Customer Communications Service, banks can communicate personalized, timely messages to customers during high-risk transactions. As stated by FICO's Adam Davies, these strategic messages can effectively disrupt a scammer's manipulation of the customer. Through a series of immediate, tailored messages, if a customer pauses or contemplates a payment, the system can prompt them to consider delaying the transaction or contacting a fraud prevention professional.

Impact of the New Solution

Several major UK banks are currently implementing this product, with initial trials indicating a significant reduction in fraud. Early adopters of the Scam Signal reported a 41% decline in the number of individuals falling victim to scams, a 44% decrease in financial losses from these scams, and a staggering 55% reduction in false positive rates—allowing genuine transactions to proceed without unnecessary delays.

About FICO

FICO (NYSE: FICO) is a leading company with a rich history dating back to 1956. Widely recognized for pioneering predictive analytics and data science, FICO has developed over 200 patents for technologies that enhance profitability and customer satisfaction across various industries. From safeguarding 4 billion payment cards globally to facilitating better risk management, FICO is instrumental in transforming the landscapes of financial services, insurance, telecommunications, and more. The esteemed FICO Score, utilized by the majority of top lenders in the United States, serves as a widely acknowledged measure of consumer credit risk.

About Jersey Telecom

Jersey Telecom, once a government-owned entity, has successfully evolved into a prominent global technology corporation. Founded over 135 years ago, JT specializes in innovative connectivity and mobile solutions while employing more than 500 individuals worldwide. By becoming the first telecom to provide fiber-to-home services in 2018, JT has positioned itself as an industry leader. With the launch of its energy-efficient 5G services in 2023 and the acquisition of Spectrum Message Services, JT is now enhancing mobile intelligence services, supporting secure transaction notifications for over 135 million users globally.

Frequently Asked Questions

What is Authorised Push Payment fraud?

Authorised Push Payment fraud is when individuals are deceived into transferring money to scammers by authorizing the payments.

How does the Scam Signal work?

The Scam Signal analyzes real-time network and payment data to identify potential scams during live transactions, enabling immediate customer intervention.

What are the benefits of the FICO and JT collaboration?

This collaboration offers timely protections for customers against financial scams through enhanced communication and intervention during suspicious transactions.

What improvements have been reported from the use of this technology?

Initial tests in the UK show a reduction of 41% in scam victims and significant decreases in fraud losses and false positives.

What role does privacy play in this solution?

The solution operates within a privacy-compliant framework to ensure that customer personal data is protected while detecting fraud.

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