Starling Bank has announced that it has introduced a new AI tool aimed at supporting customers in identifying if they will be scammed.
Positioning itself among the first banks to offer such a capability in the UK, Starling intends to support customers in spotting purchase scams through the Scam Intelligence tool, directly in its app.
How does it work?
To use it, customers need to upload images of items, listings, and messages from sellers on online marketplaces to the tool. The Scam Intelligence solution then analyses the pictures for any signs of fraud before sending tailored guidance about whether or not it is safe to move forward with the purchase. In building the tool, Starling Bank utilised Google’s generative AI model Gemini, as well as the financial institution’s systems, to facilitate risk assessment. After a customer uploads a screenshot of a product they want to buy from Facebook Marketplace, for example, the tool detects the price and assesses if it is actually too good to be true, if the image in the advert is not genuine, or if the bank account details do not match those of the seller.
Additionally, Starling’s tool can flag if a seller has refused to leverage a platform’s secure payment capabilities, as well as detect if they are pressuring the buyer to transfer funds. According to data recorded in the testing phase, the tool scaled the rate at which customers cancel marketplace payments by 300%.
Furthermore, Starling’s Scam Intelligence solution can be utilised by both personal and business account customers. The launch positions Starling as the latest financial institution to centre its efforts on mitigating authorised push payment (APP) fraud, where individuals innocently approve payments to scammers. Talking about the rollout, representatives from Starling Bank emphasised that the new solution is set to enable customers to better protect themselves against scams while also learning more about the warning signs.
The UK’s losses in the face of fraud
Recent data shows that APP fraud rates across the UK have dropped 20% while card fraud increased as fraudsters adapt to tighter security measures. Losses due to fraud remained stable at GBP 1.17 billion in 2024, which marked a plateau after years of instability. Additionally, the landscape of financial crime has been changing recently, as fraudsters adapt their methods and banks further improve their security measures.
When it comes to APP fraud, the rates declined by 2% in value, reaching GBP 450.7 million. Cases dropped by 20% in the UK, which marked the lowest figure since 2021.
