Brussels, 16 October 2024 – Swift made a groundbreaking announcement today regarding the implementation of new AI-enhanced fraud detection tools aimed at bolstering the global payments industry’s defense against increasingly sophisticated bad actors. Scheduled for release in January 2025, this service comes as a result of extensive collaboration with banks worldwide and a successful pilot program earlier this year.
The innovative capability expands upon Swift’s existing Payment Controls Service, a tool commonly utilized by small and medium-sized financial institutions. By leveraging pseudonymized data from the multitude of transactions traversing the Swift network annually, the new AI-enhanced system is designed to pinpoint and flag suspicious activities in real-time, enabling swift corrective action.
This development represents part of Swift’s broader partnership with its vast network of over 11,500 banks and financial entities to explore the utility of AI in addressing industry-wide challenges. Given the staggering estimated cost of financial services fraud amounting to USD 485 billion in 2023 alone, the focus on leveraging AI for enhanced fraud detection aims to provide financial institutions with more robust and precise insights into potential fraudulent behaviors.
Jerome Piens, Chief Product Officer at Swift, emphasized the necessity of fortifying defenses against evolving tactics employed by malicious actors within the financial sector. Piens reiterated Swift’s commitment to maintaining network security and resilience through proactive measures and the adoption of cutting-edge technology.
Since February, Swift has been collaborating with major global financial institutions to investigate the potential of federated learning in combination with privacy-enhancing technologies to facilitate secure information sharing without compromising sensitive data. The group has made significant strides in developing various fraud detection applications, which are slated for testing in a controlled sandbox environment.
The deployment of this advanced fraud detection service marks a significant milestone in Swift’s strategic objective of streamlining international transactions for seamless and secure end-to-end processes while upholding trust, security, and regulatory compliance.
Representatives from BNP Paribas lauded Swift’s initiative, highlighting the vital role of inter-bank collaboration in fortifying fraud detection capabilities through data sharing and AI utilization. They expressed full support for Swift’s forward-thinking approach as vital in upholding the integrity of the financial ecosystem.
Similarly, Standard Bank Group, the largest bank in Africa by assets, has actively engaged in Swift’s AI fraud detection initiative to enhance transaction security for its customers. The technology is engineered to swiftly identify suspicious activities in real-time, reducing fraud risks and ensuring a safe banking environment for clients. By embracing AI-driven solutions, Standard Bank Group reaffirms its dedication to innovation and safeguarding the financial well-being of its clientele.
In closing, the collaboration across the banking sector and the adoption of advanced technologies signify a transformative leap towards a more secure and efficient financial landscape, underpinned by collective efforts to combat fraudulent activities and ensure customer trust and safety.