Mastercard partners with Feedzai to detect and tackle crypto fraud
Financial services provider Mastercard has announced a new partnership with artificial intelligence (AI) firm Feedzai to enhance its ability to detect and prevent fraud associated with cryptocurrency exchanges. The collaboration, as reported by CNBC on Nov. 20, sees Feedzai’s software integrated directly with Mastercard’s CipherTrace Armada platform, which monitors transactions from thousands of crypto exchanges for fraudulent and suspicious activities.
Feedzai’s AI-driven software is designed to identify and block suspicious transactions in milliseconds, with data indicating that nearly 40% of fraudulent transactions involve direct transfers from bank accounts to crypto exchanges. Nuno Sebastio, the CEO and co-founder of Feedzai, highlighted the technology’s potential to increase fraud detection while also identifying money laundering and mule accounts.
This partnership follows Mastercard’s previous deployment of an AI-powered tool in July to help banks combat fraud and payment scams related to real-time payments. Mastercard has been actively involved in the Web3 and crypto space, launching crypto-based Mastercards in collaboration with major exchanges like Nexo and Binance. The company has also participated in trials involving central bank digital currencies (CBDCs) on blockchains, including a successful attempt in collaboration with the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre CBDC, with participation from Cuscal and Mintable.
Hot Take
Mastercard’s collaboration with Feedzai demonstrates a proactive approach to combatting fraud within the crypto space, bolstering confidence in secure and reliable transactions for users.
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