Mastercard Enhancing Protection Against Crypto Fraud
Feedzai, a leading provider of financial crime and risk management solutions, is collaborating with Mastercard to “increase crypto fraud protection for hundreds of millions of consumers.”
The alliance involves integrating Mastercard’s Ciphertrace Armada into Feedzai’s Riskops platform, which analyzes transaction data totaling over $1.7 trillion annually. It will allow Feedzai to “leverage Mastercard’s Ciphertrace crypto intelligence solutions” to reduce the risk of account-to-account fraud flowing into crypto exchanges.
Feedzai’s customers, who collectively protect over 900 million consumers globally, will now be able to identify and prevent transactions involving fraudulent crypto exchanges before they occur, thanks to this partnership.
Mastercard described that the combined intelligence will enable financial institutions to stop transactions involving high risk and potentially fraudulent crypto exchanges in real time, alerting the customer to the risk before money leaves their account.
Currently, about 40% of fraudulent transactions directly flow from a bank account to a cryptocurrency exchange. Financial institutions face significant challenges in effectively monitoring cryptocurrency, as highlighted in Feedzai’s latest report on global anti-money laundering compliance.
Criminals often use crypto as part of their scam strategies, with the scam proceeds often being funneled to an unauthorized or otherwise risky crypto exchange. This global partnership will further empower banks to protect their customers against the risks associated with crypto and instill further trust in the ecosystem.
Hot Take
Mastercard and Feedzai’s collaboration is set to revolutionize the fight against fraudulent crypto transactions, offering unparalleled protection to consumers and strengthening trust in the crypto ecosystem.
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