ScamFlag: Smarter Scam Prevention Starts with the Customer

As scams grow more complex, banks need solutions that reach customers in the moment of manipulation. 

Scams driven by social manipulation are rising at an alarming pace. In 2024 alone, Europe experience a 156% surge in cases, while the United States  recorded its highest-ever fraud losses.

Scam prevention has become one of the most pressing and complex challenges for banks. Investments in behavioral detection and AI are both commendable and necessary, helping institutions keep pace with evolving scam tactics. But even the most advanced systems face a fundamental limitation: in scam scenarios, the transaction is often initiated, and worse, insisted on, by the victim themselves.

This is the reality of modern scams, especially Authorised Push Payment (APP) fraud. Banks may detect behavioral red flags. They might pause the transaction or reach out to the customer. But often, the outcome is the same: the customer proceeds anyway, convinced by the scammer, and the bank must respect their decision.

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The Missing Piece in Scam Prevention

Banks have long relied on customer education to close the gap that even state-of-the-art fraud stacks can’t. But when manipulation strikes, awareness alone isn’t enough. Victims forgot scam education campaigns. Rational thinking is overridden by urgency and fear.

In a recent KPMG Global Banking Scam Survey, this frustration surfaced clearly: financial institutions are losing confidence in passive educational efforts. Their concern? People tend to forget what they’ve learned the moment they’re caught in a scammer’s grip, right when manipulation is at its peak.

This is why timing is critical in scam prevention.

Experience and research consistently show that fraud warnings are most effective when delivered during the moment of vulnerability, when a person is actively being manipulated. It’s in that window that people are most likely to pause, reflect, and change course.

ScamFlag: Real-Time Support, Right When It’s Needed

That’s exactly why ThreatMark created ScamFlag, a tool designed to meet users right where it matters most; during the scam attempt.

ScamFlag is a simple yet powerful solution powered by fraud-trained AI, embedded directly into mobile banking apps. It helps users respond to suspicious interactions in real time. Whether it’s a strange email, a suspicious WhatsApp message, or a fake payment request, customers can upload a screenshot directly within the banking interface.

ScamFlag then analyzes the image using specialized AI trained on real-world scam tactics, detecting signs of deception such as phishing, impersonation, manipulated payment instructions, or links to fraudulent websites. The screenshot can come from any digital channel—SMS, email, chat, or browser.

Your Customer’s Scam Advisor—Always on Hand

Once the analysis is complete, the user immediately receives:

• A clear verdict on whether the content appears to be a scam
• A plain-language explanation of what’s happening, highlighting the specific manipulative tactics in play, such as impersonation, urgency cues, or fake payment requests

Unlike traditional awareness efforts, ScamFlag delivers guidance in context, during a real-world scam attempt. It explains what’s happening using the actual scenario unfolding on the user’s screen. This creates a rare but powerful learning opportunity—protection, education, and experience all at once.

Understanding Automation Bias

There’s another important layer: psychology. Research suggests that some users may respond more readily to alerts coming from an automated system than to human warnings. This tendency, often referred to as automation bias, doesn’t apply to everyone, but it can be a valuable factor in scam prevention.

By delivering timely, automated alerts from a trusted app interface, ScamFlag can help persuade users to pause and reconsider.

Built for Banks: Insight, Efficiency, and Ease

ScamFlag isn’t just a customer protection tool; it brings tangible benefits to banks as well:

• Real-time visibility into scam tactics: By capturing user interactions early, ScamFlag provides intelligence on how, when, and where customers are being targeted
• Reduced fraud volumne and escalations: ScamFlag empowers customers to verify scams before any transaction is made
• Less pressure on fraud and service teams: It reduces workload by removing the need for manual verification or follow-up

The solution is lightweight, requires no analyst oversight, and integrated via SDK or API. It’s also white-label ready, allowing banks to launch it under their own brand without introducing friction.

When Equipped with Tools, Customers Stop Being Easy Targets

Behavioral intelligence remains a cornerstone of scam detection. It helps identify risky patterns and signals of manipulation. But in many cases, detecting isn’t enough.

Stopping scams means giving customers the right tools at the right time, and a reason to think twice. That’s where ScamFlag fits. It adds a critical layer to proactive fraud disruption by helping customers pause and verify, before they send money. And it does so without adding complexity to the user experience.

Learn more about ScamFlag and how it helps financial institutions reduce fraud losses, build customer trust, and stay ahead of emerging scam tactics.

Learn about ScamFlag