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Swift Demonstrates AI and Secure Data Collaboration to Combat International Payment Fraud
Swift, a leading financial messaging cooperative based in Belgium, has been exploring the role of artificial intelligence (AI) in financial services and has recently conducted experiments to demonstrate how AI and secure cross-border data collaboration can reduce fraud in international payments.
The experiments involved 13 global financial institutions, including ANZ, BNY, and Intesa Sanpaolo, and technology partners such as Google. Using synthetic data from ten million artificial transactions, the model was twice as effective in detecting known frauds compared with one trained on a single institution's data.
The tests applied privacy-enhancing technologies (PETs) to allow participants to exchange fraud-related insights securely across jurisdictions. Another case combined PETs with federated learning, an AI technique that trains models locally at each institution without sharing customer data.
PETs enabled real-time verification of intelligence on suspicious accounts, potentially shortening the time needed to identify international financial crime networks and prevent fraudulent payments. Earlier this year, Swift introduced an AI-enhanced Payments Controls Service.
Rachel Levi, Head of AI at Swift, stated that these experiments demonstrate Swift's role as a trusted cooperative at the heart of global finance. She also emphasised that a united, industry-wide fraud defense will always be stronger than one put up by a single institution acting alone.
Swift plans to expand participation before moving to a second phase of trials using real transaction data. Financial crime is estimated to have cost the sector US$485 billion in 2023, making these experiments a significant step towards enhancing security in the global financial system.
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