Swift is planning to roll out new AI-enhanced fraud detection for the global payments industry. It will be available in January 2025.
The new capability builds on Swift’s existing Payment Controls Service by drawing on pseudonymized data from the billions of transactions that flow over the Swift network each year to identify and flag suspicious transactions so that action can be taken in real-time.
The rollout is part of Swift’s broader collaboration with its global community of more than 11,500 banks and financial institutions to test how AI can solve cross-industry challenges. With global industry estimates putting the total cost of fraud in financial services at USD 485 billion in 2023 alone1, Swift is focused on using AI to give financial institutions stronger and more accurate insights into instances of potentially fraudulent activity.
“Bad actors are using increasingly sophisticated tactics to commit financial crime, and the global financial industry needs to raise its defences higher to ensure their customers can continue to transact globally with confidence,” Swift CPO Jerome Piens said. “Swift has a long track record of supporting our community by staying one step ahead to maintain the security and resilience that our network is known for – and now we’re doing so again by harnessing the latest technology.”
Since February, Swift has been working with global financial institutions to explore how federated learning, combined with privacy-enhancing technologies, could enable market participants to share information without revealing their proprietary data. The group has developed several fraud detection use cases, which are set to be tested in a sandbox.
“Collaboration across the banking sector is crucial to enhancing fraud detection, and by sharing data and leveraging AI, we empower ourselves to stay ahead. At BNP Paribas, we are fully committed to supporting Swift’s innovative initiative in that regard, as it marks a key step forward in protecting the integrity of our financial ecosystem,” BNP Paribas said in a statement.
“Standard Bank Group, Africa’s biggest bank by assets, has participated in Swift’s initiative for AI fraud detection capability to enhance the security of its customers’ transactions,” head operations control officer John McHugh added. “The technology will identify suspicious patterns in real-time, reducing fraud risk and ensuring a safer banking experience for clients. By leveraging the power of AI, Standard Bank Group reaffirms its commitment to innovation and safeguarding the financial assets of its clients – who are our main asset.”
