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Swift, the global financial messaging service provider, is collaborating with Google Cloud to develop innovative anti-fraud technologies.
This initiative, developed in partnership with Rhino Health and Capgemini, aims to address the limitations of conventional fraud detection methods, which often struggle to keep pace with sophisticated criminal tactics that span multiple institutions and countries.
The partnership will leverage advanced AI and federated learning techniques combined with privacy-enhancing technologies (PETs) and Trusted Execution Environments (TEEs).
This will enable collaborative intelligence without compromising the privacy or security of sensitive financial data.
Federated learning allows participating institutions to train AI models on their own data and share only the learnings, not the data itself, with a central server managed by Swift.
This approach enhances fraud detection capabilities while ensuring data confidentiality.
Swift plans to launch a sandbox environment in the first half of 2025, with Google Cloud as a strategic partner.
This sandbox will allow 12 global financial institutions to prototype learning from historical fraud data, using Swift’s anomaly detection model as a foundation.
The initiative builds on Swift’s existing Payment Controls Service and follows a successful pilot programme involving institutions across Europe, North America, Asia, and the Middle East.
This collaborative approach offers several advantages. By sharing insights, institutions can identify complex fraud schemes that might go undetected by individual organisations.
Improved models lead to more accurate threat identification and fewer false alarms, thereby reducing disruptions to legitimate activity.
Shared knowledge enables rapid responses to new fraud trends, ensuring the system remains effective against evolving threats.
As more institutions participate, the system’s effectiveness increases, creating a powerful network effect that strengthens fraud prevention for everyone involved.
The project emphasises data privacy and security, utilising privacy-enhancing technologies and confidential computing techniques to protect sensitive information.
Rachel Levi
“This exploration will help the community validate whether federated learning technology can help financial institutions stay one step ahead of bad actors through sharing of fraud labels, and in turn enabling them to provide an enhanced cross-border payments experience to their customers,”
said Rachel Levi, Head of Artificial Intelligence, Swift.
Andrea Gallego
“Our collaboration with Swift exemplifies the transformative potential of federated learning and confidential computing.
By enabling secure collaboration and knowledge sharing without compromising data privacy, we are fostering a safer and more resilient financial ecosystem for everyone,”
said Andrea Gallego, Managing Director, Global GTM Incubation, Google Cloud.
