• South Africa launches Scam Signal to combat APP fraud

• Platform links banks, mobile networks for real-time detection

• Digital payment fraud caused nearly 3 billion rand losses in2024

South Africa has launched Scam Signal, a technology platform designed to detect and prevent Authorized Push Payment (APP) fraud, in which users are manipulated into authorizing payments to fraudulent accounts. The GSM Association (GSMA) recently announced the initiative. South Africa is the second country to adopt the solution after the United Kingdom.

The deployment of Scam Signal is based on collaboration between banks, mobile operators and technology firms. The project involves several major South African banks, as well as MTN Chenosis, FICO, Jersey Telecom and the GSMA, the global organization of mobile operators.

The platform uses application programming interfaces (APIs) to connect mobile networks with banking systems, enabling real-time analysis of transaction data and network behavior to identify fraud indicators before payments are completed.

Official data show that digital payment fraud caused losses of nearly 3 billion rand ($189 million) in 2024.

APP scams often rely on social engineering, which limits the effectiveness of traditional detection systems. Scam Signal provides an additional safeguard by blocking suspicious transactions or alerting users at the point of initiation.

Adoni Conrad Quenum