Swift has recently made an announcement regarding the launch of a new AI-enhanced fraud detection service aimed at bolstering the global payments industry’s defence against increasingly sophisticated bad actors. Set to be available starting in January 2025, this new service is the culmination of extensive collaboration with banks worldwide and a successful pilot conducted earlier this year.

This latest capability is an extension of Swift’s existing Payment Controls Service, which is widely utilized by small and medium-sized financial institutions. By leveraging pseudonymised data from the vast number of transactions processed through the Swift network annually, the new service is designed to pinpoint and flag suspicious transactions in real-time, enabling timely action to be taken.

Swift’s initiative aligns with its overarching goal of working closely with its vast community of over 11,500 banks and financial institutions to explore how AI can address industry-wide challenges. Given that global industry estimates pegged the total cost of fraud in financial services at a staggering USD 485 billion in 2023 alone, Swift is committed to leveraging AI to equip financial institutions with more robust and precise insights into potentially fraudulent activities.

Jerome Piens, Chief Product Officer at Swift, emphasized the pressing need for heightened defences within the financial industry to combat the growing sophistication of malicious actors. By harnessing the latest technology, Swift aims to maintain its reputation for security and resilience by staying ahead of evolving threats.

In a bid to foster collaboration within the banking sector, Swift has been collaborating with top global financial institutions since February to explore how federated learning, in conjunction with privacy-enhancing technologies, can enable information sharing without compromising proprietary data. The joint efforts have led to the development of several fraud detection use cases, which are slated to undergo testing within a sandbox environment.

This rollout of the enhanced fraud detection service represents a significant milestone in Swift’s strategic vision to streamline international transactions from end to end, making them instant and frictionless, all while upholding trust, security, and compliance standards.

Olivier Nautet, Head of Cybersecurity at BNP Paribas, along with Nicolas Trimbour, Head of Fraud Prevention at Cash Management, and Su Yang, Head of Artificial Intelligence at Transaction Banking, expressed full support for Swift’s innovative initiative in strengthening fraud detection. They highlighted the importance of data sharing and AI utilization in staying ahead of potential threats and safeguarding the financial ecosystem.

Likewise, Standard Bank Group, Africa’s largest bank by assets, has actively participated in Swift’s AI fraud detection initiative to enhance transaction security for its customers. The new technology is expected to flag suspicious patterns in real-time, thereby mitigating fraud risks and ensuring a safer banking experience for clients. By embracing AI capabilities, Standard Bank Group reaffirms its dedication to innovation and protecting the financial assets of its clientele.

Overall, Swift’s introduction of AI-enhanced fraud detection services underscores the industry-wide commitment to leveraging cutting-edge technology to safeguard against financial crime and maintain trust in global transactions. As threats evolve, financial institutions must continue to collaborate and innovate to effectively combat fraud and uphold the integrity of the financial ecosystem.

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