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Swift is set to launch a cutting-edge, AI-powered real-time fraud detection service in January 2025, following a successful pilot program involving financial institutions from Europe, North America, Asia, and the Middle East. This new service builds on Swift’s existing Payment Controls Service, which is widely used by small and medium-sized financial institutions. The enhanced system will leverage pseudonymised data from billions of transactions flowing through Swift’s global messaging network to identify and flag suspicious activity in real time, allowing for immediate action.
Jerome Piens, Chief Product Officer at Swift, emphasized the growing sophistication of financial criminals, stating, “Bad actors are employing increasingly advanced techniques to perpetrate financial crimes. The global financial industry must elevate its defences to ensure customers can continue transacting globally with confidence.”
Since February, Swift has collaborated with member banks to explore the potential of federated learning, in combination with privacy-enhancing technologies, to share fraud detection insights without compromising proprietary data. This initiative has already led to the development of several fraud detection use cases, which will soon be tested in a sandbox environment.
Olivier Nautet, Head of Cybersecurity at BNP Paribas, lauded the initiative, stating, “Collaboration across the banking sector is critical for enhancing fraud detection. By sharing data and utilizing AI, we equip ourselves to stay ahead of financial criminals. At BNP Paribas, we are fully committed to supporting Swift’s innovative initiative, which represents a significant advancement in protecting the integrity of our financial ecosystem.”
This AI-powered fraud barrier underscores the importance of collective efforts in the financial industry to combat evolving threats and ensure the continued security of global transactions.
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