Swift Launches AI Fraud Detection for Banks October 2024

In January 2025, Swift will launch an AI-powered anomaly detection service aimed at enhancing fraud prevention in the global payments industry. This initiative follows a successful pilot program conducted with financial institutions across Europe, North America, Asia, and the Middle East. The new service builds on Swift's existing Payment Controls Service, utilizing pseudonymised data from billions of transactions to identify suspicious activities in real-time. The move comes as the financial sector faces an estimated USD 485 billion in fraud costs in 2023, prompting a need for more robust defenses against increasingly sophisticated criminal tactics. Swift's collaboration with over 11,500 banks and financial institutions is part of a broader strategy to leverage AI technology to address cross-industry challenges. The organization has been exploring federated learning and privacy-enhancing technologies to facilitate information sharing among market participants without compromising proprietary data. This approach aims to develop effective fraud detection use cases that can be tested in a controlled environment. The rollout of this enhanced service is a significant milestone in Swift's vision to make international transactions seamless while ensuring security and compliance. Financial institutions like BNP Paribas and Standard Bank Group have expressed their commitment to this initiative, recognizing the importance of innovation in safeguarding customer transactions. By harnessing AI, these banks aim to reduce fraud risk and enhance the overall banking experience for their clients. As the financial landscape evolves, Swift's proactive measures reflect a commitment to maintaining trust and resilience in the global financial ecosystem, ensuring that customers can transact with confidence.