Harnessing AI to Fight Payments Fraud – Swift
(27 June 2024 – Belgium) Swift is launching two pilots to test the practical application of artificial intelligence (AI) to enhance fraud detection in payments in collaboration with the group’s global payments community.
Faced with increasing fragmentation, new regulatory requirements and rapidly evolving external threats, financial service providers are turning to AI not only to enhance their existing processes, but to deliver AI insights to elevate their offerings as well. The preparation phase of the pilot initiative commenced in early 2024 with initial findings to be presented at Sibos in Beijing in October.
In 2023 alone, global fraud incurred a staggering cost of US$485 billion according to the Nasdaq-Verafin Global Financial Crime Report. It’s a growing challenge that’s becoming more acute for market participants with the advent of real-time payments and can incur significant reputational damage in addition to financial cost.
“AI has great potential to significantly reduce fraud in the financial industry. That’s an incredibly exciting prospect, but one that will require strong collaboration. Swift has a unique ability to bring financial organisations together to harness the benefits of AI to help further strengthen the cross-border payments ecosystem” commented Swift Chief Innovation Officer, Tom Zschach.
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