Swift Deploys AI to Combat Cross-Border Payment Fraud

Swift is set to revolutionise fraud detection in cross-border payments with an artificial intelligence-powered enhancement to its Payment Controls Service (PCS). 

This initiative, part of Swift's ongoing efforts to leverage cutting-edge technology, aims to address the persistent challenge of financial crime in the global banking sector.

The enhanced service, which builds on Swift's existing fraud detection capabilities, utilises advanced machine learning algorithms to analyse pseudonymised data from billions of transactions across the Swift network. 

This approach enables the system to detect and flag suspicious activity with greater accuracy and speed than traditional methods.

Jerome Piens, Chief Product Officer at Swift, underscores the urgency of this development: “Bad actors are using increasingly sophisticated tactics to commit financial crime. The global financial industry needs to raise its defences higher to ensure their customers can continue to transact globally with confidence.”

Industry-Wide Collaboration

The rollout follows an extensive pilot programme involving financial institutions across multiple continents. This collaborative approach reflects Swift's commitment to addressing industry-wide challenges through collective innovation.

Olivier Nautet, Head of Cybersecurity at BNP Paribas, a multinational bank headquartered in Paris, notes: “Collaboration across the banking sector is crucial to enhancing fraud detection, and by sharing data and leveraging AI, we empower ourselves to stay ahead.”

Olivier's colleagues, Nicolas Trimbour, Head of Fraud Prevention Cash Management, and Su Yang, Head of Artificial Intelligence Transaction Banking, add: “At BNP Paribas, we are fully committed to supporting Swift's innovative initiative in that regard, as it marks a key step forward in protecting the integrity of our financial ecosystem.”

Pioneering Privacy-Enhancing Technologies

In parallel with the PCS enhancement, Swift is exploring the potential of federated learning, a machine learning technique that trains algorithms on decentralised data. 

This approach, combined with privacy-enhancing technologies, could enable market participants to share information without compromising proprietary data.

John McHugh, Head Operations Control – CIB at Standard Bank, Africa's largest bank by assets, highlights the potential impact of these advancements: “The technology will identify suspicious patterns in real time, reducing fraud risk and ensuring a safer banking experience for clients. 

“By leveraging the power of AI, Standard Bank Group reaffirms its commitment to innovation and safeguarding the financial assets of its clients - who are our main asset.”

A Forward-Looking Approach

While the immediate focus is on combating fraud, the implications of this technology extend beyond security. Swift's initiative represents a significant step towards enhancing the efficiency and trustworthiness of global financial transactions.

Jerome encapsulates Swift's vision: “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.”

As financial crime continues to evolve, Swift's AI-powered approach promises to provide a robust defence mechanism for the global financial community. 

By combining advanced technology with industry-wide collaboration, Swift is setting a new standard for security in cross-border payments, paving the way for a more resilient global financial ecosystem.

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