BRUSSELS, Belgium—Swift reported it is working on two AI-based experiments in collaboration with its member banks it said is designed to explore how the technology could assist in combatting cross-border payments fraud and save the industry billions in fraud-related costs.
In the first pilot, Swift said it is enhancing its existing Payment Controls service – which seeks to help financial institutions detect anomalies that could be indicative of fraud – by using an AI model that will create a more nuanced and accurate picture of potential fraud activity, using historical patterns of activity on the Swift network.
Swift said it will work with Payment Controls customers to refine the enhancement, and the test will use the customers’ own live traffic data – giving the findings real world applicability.
Separate Experiment
In a separate experiment, Swift said it has convened 10 leading financial institutions to test how it can use advanced AI technology to analyze anonymously shared data from different sources, in a way that “will strengthen the global financial ecosystem.”
“AI’s capability for confidential data sharing could be a game-changer for the industry. The tests could lead to the wider use of information sharing in fraud detection, building on its success in assessing cybersecurity threats,” Swift said.
Numerous Banks Involved
The group, which includes leading banks from around the world including NY Mellon, Deutsche Bank, DNB, HSBC, Intesa Sanpaolo and Standard Bank, will test the use of secure data collaboration and federated learning technologies, according to Swift.
The company added it will leverage a secure infrastructure that will enable financial institutions to exchange relevant information with strong privacy-preserving controls.
Swift said its AI anomaly detection model will then be able to gather insights and identify potential fraud patterns from a much richer dataset.
How to Sign Up For the Best Daily News Email in Credit Unions? (It’s Free!)
Every workday CUToday.info delivers the most comprehensive, freshest daily newsletter with the day’s news headlines, including links to the related articles. The Fresh Today newsletter is the most timely, relevant and widely-read source of news and information in the CU community. And it’s free!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties,
And did we mention it’s free?