In a move that signals the future of cross-border payments security, Swift is set to launch an AI-driven anomaly detection service to combat financial crime more effectively.
Beginning in January 2025, the service will help banks worldwide proactively detect suspicious transactions in real-time, building on Swift’s Payment Controls Service, already popular among small and medium-sized institutions.
This development comes after a successful pilot conducted in partnership with financial institutions from Europe, North America, Asia, and the Middle East.
Swift’s new system leverages AI to analyse pseudonymised transaction data, flagging irregularities as they occur.
This enhancement is crucial, especially considering the rising sophistication of fraud tactics, which cost the global financial services industry an estimated $485 billion in 2023 alone.
Swift’s initiative is part of a broader strategic push to innovate using AI across the payments sector.
The company has been collaborating with over 11,500 financial institutions globally, focusing on how federated learning and privacy-enhancing technologies can enable fraud detection without compromising proprietary data.
The pilot has yielded promising results, and further testing will continue in a sandbox environment.
This AI-enhanced fraud detection will empower banks to respond more rapidly to potential threats, ensuring safer and smoother cross-border transactions.
Global Payments Network
According to Jerome Piens, Chief Product Officer at Swift, staying ahead of bad actors is essential for maintaining trust in the global payments network.
With this rollout, Swift aims to provide financial institutions with more accurate fraud detection capabilities, allowing them to maintain the security and integrity of international transactions.
By fostering collaboration across the banking sector, Swift’s AI-powered service is poised to set a new standard in cross-border payment security, ensuring global transactions remain safe, efficient, and reliable.
This innovation, which builds on Swift’s long-standing commitment to operational excellence, represents a significant leap forward in protecting the global financial ecosystem.
“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,” comments Jerome Piens, Chief Product Officer at Swift
“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.”
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