Swift to launch AI fraud detection service in 2025

Global fraud in financial services is estimated to have cost $485b in 2023.

Swift announced the rollout of a new AI-enhanced fraud detection service, set to launch in January 2025, to strengthen defences in the global payments industry. 

Developed in collaboration with banks worldwide and following a successful pilot earlier this year, the service builds on Swift’s existing Payment Controls Service by using pseudonymised data from billions of transactions to flag suspicious activity in real-time.

This initiative is part of Swift's broader efforts to collaborate with its network of over 11,500 financial institutions to tackle cross-industry challenges through AI. 

With global fraud in financial services estimated to have cost $485b in 2023, Swift’s new service is designed to provide institutions with stronger, more accurate insights into potentially fraudulent transactions.

The service rollout follows months of testing fraud detection use cases in a sandbox environment, involving major financial institutions. Initial results will be presented at Swift’s flagship Sibos event later this month.

Several banks have expressed their support for Swift’s initiative, such as BNP Paribas, and Standard Bank.