October 17, 2024 at 04:50PM
Swift announced the launch of AI-enhanced fraud detection for global payments in January 2025, following successful collaboration with banks. This service builds on existing capabilities, using data to identify suspicious transactions in real-time. The initiative aims to combat financial fraud, which cost the industry $485 billion in 2023.
**Meeting Takeaways: Swift’s AI-Enhanced Fraud Detection Rollout**
– **Announcement Date and Service Launch**: Swift announced the rollout of new AI-enhanced fraud detection services, scheduled for January 2025.
– **Objective**: The service aims to strengthen the global payments industry’s defenses against increasingly sophisticated fraud tactics.
– **Development Background**: This new capability builds on Swift’s existing Payment Controls Service and is based on extensive collaboration with global banks, following a successful pilot project earlier this year.
– **Technology Utilized**: The fraud detection system leverages pseudonymised data from billions of transactions on the Swift network to identify and flag suspicious activities in real-time.
– **Industry Context**: The global cost of fraud in financial services is estimated to be USD 485 billion in 2023, underscoring the urgent need for enhanced fraud detection measures.
– **Collaborative Efforts**: Swift has engaged with over 11,500 banks and financial institutions to explore how AI can address cross-industry challenges. This includes the use of federated learning and privacy-enhancing technologies to facilitate information sharing without compromising proprietary data.
– **Strategic Vision**: The rollout is a significant step in Swift’s strategy to make international transactions faster and more seamless while ensuring trust, security, and compliance.
– **Statements from Industry Leaders**:
– Jerome Piens, Chief Product Officer at Swift, highlighted the importance of staying ahead of fraud tactics to maintain customer confidence in global transactions.
– Olivier Nautet and others from BNP Paribas emphasized the significance of collaboration across the banking sector to enhance fraud detection.
– John McHugh from Standard Bank Group reaffirmed their commitment to innovation and client security through this initiative.
– **Next Steps**: The developed fraud detection use cases are set to be tested in a sandbox environment as part of the ongoing efforts to enhance the technology.
This rollout represents a critical advancement in the fight against financial fraud and the ongoing goal of improving transaction security for financial institutions and their customers.