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Swift helps banks to identify fraudulent payments with reporting system

Monday 26 September 2016 14:40 CET | News

Swift has announced the introduction of a new reporting system to help banks identify fraudulent payments made over its financial transfer network. 

Swift will send banks a Daily Validation Report, summarizing activity across currencies, countries and counterparts (destination banks), and also highlighting large or unusual payments and new combinations of payment parties. Banks can then reconcile details of such payments with their own records of the transfers they intended to make. Any discrepancies would provide warning of fraudulent activity, increasing banks chances of cancelling the transfers.

Swift plans to send the summaries via a different channel from the one used to make payments. That way, if criminals have compromised a banks Swift terminal to the point where they can hide locally generated reconciliation records, they will not also be able to intercept and tamper with the validation report.


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Keywords: banking, cybercrime, payments fraud, report, SWIFT
Categories: Fraud & Financial Crime
Companies:
Countries: World
This article is part of category

Fraud & Financial Crime






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