Mastercard partners with Feedzai to detect and tackle cryptocurrency fraud
Financial services provider Mastercard has announced a new partnership with artificial intelligence (AI) firm Feedzai to strengthen its capacity to detect and prevent fraud associated with digital currency 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 cryptocurrency 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 cryptocurrency exchanges. Nuno Sebastio, the CEO and co- founder of Feedzai, highlighted the technology’s probable to increase fraud detection while likewise identifying money laundering and mule accounts.
This partnership comes after Mastercard’s previous deployment of an AI-powered tool in July to assist banks combat fraud and payment scams related to real-time payments. Mastercard has been actively involved in the Web 3.0 and cryptocurrency space, launching crypto-based Mastercards in collaboration with major exchanges like Nexo and Binance. The company has likewise participated in trials involving monetary authority 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.
Mastercard’s collaboration with Feedzai demonstrates a proactive approach to combatting fraud within the cryptocurrency space, bolstering confidence in secure and reliable transactions for users.
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