Starling Bank has recently launched a new AI-driven tool designed to assist customers in identifying potential scams during online transactions.
Introducing Scam Intelligence
To help users spot fraudulent activities, the bank now enables customers to upload images of products, listings, and messages from sellers on various marketplaces directly into their app. This feature, known as Scam Intelligence, analyzes these images for any red flags before providing guidance on whether a transaction is likely safe or should be avoided.
Operational Mechanism
The tool operates by allowing customers to share screenshots of items they wish to purchase from online platforms like Facebook Marketplace. Upon submission, the Scam Intelligence system examines several key factors:
- It checks if the price is unusually low or suspiciously high.
- It verifies whether the product image matches the actual listing.
- It cross-references bank account details with those provided by sellers to ensure they align.
The system also identifies if a seller is bypassing platform payment systems and pressuring buyers into making direct payments. Early tests indicate that this tool significantly boosts customer awareness, reducing marketplace payment cancellations by 300%.
Applicability of the Tool
This scam detection mechanism is accessible to both personal and business account holders. By emphasizing risk assessment through advanced AI tools like Google’s Gemini model, Starling aims to protect its customers from unauthorized push payments (APP) fraud, a common tactic where victims unknowingly transfer funds to scammers.
Background on Fraud in the UK
According to recent data, while APP fraud rates decreased by 2% and reached GBP 450.7 million, overall financial crime trends are evolving as fraud tactics continue to diversify and banking systems adapt their security protocols. Card fraud saw an uptick, but total losses related to fraud remained stable at approximately GBP 1.17 billion in 2024.
