Prove Identity is launching a new service that is designed to cut down on Authorized Push Payment (APP) fraud in the UK. The Trust Score service analyzes telecommunications signals to watch for signs of social engineering, giving financial institutions the opportunity to step in before a customer falls victim to an APP scam.
In an APP fraud scheme, the fraudster will reach out to a customer under false presences, posing as a representative from a legitimate business to persuade the victim to send a payment from their account. Since the customer is the one initiating and authorizing the transaction, it often looks legitimate to less sophisticated fraud prevention systems, and limits the legal options that are available to those looking to recover the missing funds. In that regard, only 42 percent of the £854 million lost through APP fraud was returned to customers in a two-year window between 2019 and 2021, according to Prove.
Prove’s Trust Score uses cryptographic authentication to verify the information that is being exchanged during a financial transaction. Cybercriminals who are perpetrating an APP scam can reach out with a phone call, an email, or a text message, and Trust Score can monitor all of those channels to watch for anything that seems suspicious.
At the moment, Prove has partnered with two mobile operators in the UK. Trust Score analyzes transactions in real time, and is expected to reduce fraud loses for financial institutions.
“It’s imperative that we have an understanding of what constitutes unusual activity, while delivering services to legitimate consumers securely and with little friction,” said Prove UK and EU VP Keiron Dalton. “We are excited to be a key element of a hugely collaborative ecosystem containing both major mobile operators and financial associations, as we deliver cryptographic authentication technology to mitigate fraud and protect consumers from being scammed.”