UK Bank Launches AI Anti-Scam Tool for Online Marketplace Safety

TL;DR: Starling Bank has launched Scam Intelligence, a UK-first AI-powered tool that analyses online marketplace listings and seller communications for fraud indicators. Built using Google’s Gemini AI, the tool increased payment cancellation rates by 300% during testing, winning praise from the UK’s fraud minister.

Digital bank Starling Bank has unveiled an AI-powered anti-fraud tool designed to help customers detect scams before making purchases on online marketplaces including Facebook Marketplace, eBay, Vinted and Etsy.

Tool Functionality and Technology

Scam Intelligence allows Starling customers to upload images of marketplace listings, product photos, and seller communications directly into the banking app. The system analyses these materials “in seconds” to identify potential fraud indicators and provides personalised advice.

The tool was built using Google’s Gemini AI chatbot in collaboration with Google Cloud. Starling indicates the technology can detect 90% of scam indicators within uploaded images.

Analysable Content:

  • Marketplace product listings and advertisements
  • Item photographs from sellers
  • Screenshots of text messages requesting money transfers
  • Seller communications and payment requests

Scam Detection Capabilities

The AI system identifies multiple fraud warning signs across different purchasing scenarios:

Pricing and Quality Indicators:

  • Prices significantly below market value
  • Generic or low-quality photographs suggesting stolen or fake images
  • Mismatched product descriptions and images

Payment and Communication Red Flags:

  • Bank account details not matching seller information
  • Refusal to use platform-secured payment features
  • Requests to transfer money before viewing items in person
  • Pressure and urgency tactics in seller communications

During testing, customers primarily used the tool for lower-value online marketplace purchases including event tickets and trainers.

Testing Results and Impact

The tool demonstrated significant behavioural impact during its testing phase, with payment cancellation rates increasing 300% amongst users. This substantial rise suggests the tool effectively encourages customers to pause and reconsider suspicious transactions before completing purchases.

The timing is particularly relevant given recent official data showing purchase scam losses have reached their highest levels since UK Finance began collecting data in 2020. Purchase scams typically involve victims paying in advance for goods or services—ranging from concert tickets and vehicles to mobile phones and holidays—that either don’t exist or never arrive.

Government Response and Implementation

Lord Hanson, the UK’s minister for fraud, described Scam Intelligence as “a brilliant example of how industry can deploy AI to help us stay one step ahead of fraudsters,” calling it a “UK-first” innovation.

The tool was formally unveiled at a fintech event in Las Vegas on 27 October 2025.

Implementation Details:

  • Available within Starling Bank’s mobile app
  • Opt-in functionality (not mandatory for customers)
  • First AI-powered scam detection tool offered by a UK bank
  • Customers must explicitly enable the feature

Looking Forward

Harriet Rees, Starling’s chief information officer, positioned the tool as empowering customers “to spot the signs of scams themselves” and “be their own detective and investigator.”

The launch represents a proactive approach to fraud prevention, shifting responsibility and awareness to customers at the point of potential transaction. Rather than relying solely on post-transaction intervention, the tool provides real-time intelligence enabling informed decision-making.

This development highlights growing adoption of AI technologies for consumer protection in financial services, particularly addressing the rising threat of online marketplace fraud. The tool’s focus on user education and empowerment—rather than automated transaction blocking—represents a balanced approach between security and customer autonomy.

The 300% increase in payment cancellations during testing suggests customers value and respond to AI-generated fraud intelligence when presented at critical decision points. This behavioural shift may influence how other financial institutions approach fraud prevention technology development.

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