Mastercard has announced a strategic partnership with artificial intelligence (AI) firm Feedzai to enhance its capabilities in detecting and preventing fraud associated with cryptocurrency exchanges. The integration of Feedzai's AI technology with Mastercard's CipherTrace Armada platform aims to provide advanced monitoring of transactions across thousands of crypto exchanges, identifying and blocking suspicious activities in real time. The collaboration seeks to address the increasing challenges of fraud routed through cryptocurrency transactions, offering improved protection for consumers and detecting potential money laundering activities.
Financial services provider Mastercard has unveiled a strategic partnership with artificial intelligence (AI) firm Feedzai, with the objective of strengthening its capabilities in detecting and preventing fraud associated with cryptocurrency exchanges. This collaboration marks a significant step in the financial industry's efforts to address the evolving challenges of fraudulent activities routed through cryptocurrency transactions.
As part of the partnership, Feedzai's advanced AI technology will be integrated directly with Mastercard's CipherTrace Armada platform. This platform serves as a crucial tool for banks, enabling them to monitor transactions across numerous crypto exchanges for signs of fraud and other suspicious activities. By leveraging Feedzai's sophisticated software, which can identify and block suspicious transactions in "nanoseconds," Mastercard aims to enhance its real-time monitoring capabilities.
According to data from Feedzai, nearly 40% of scam transactions involve direct transfers from bank accounts to crypto exchanges. The integration of Feedzai's AI technology is expected to significantly improve fraud detection, providing enhanced protection for unsuspecting consumers. Additionally, the technology will play a crucial role in identifying potential money laundering activities and preventing the use of mule accounts in fraudulent transactions.
Nuno Sebastio, CEO and co-founder of Feedzai, emphasized that the collaboration addresses a common oversight in fraud prevention efforts within the cryptocurrency space. He noted that many banks might inadvertently block transactions involving recognized and regulated entities in the crypto space while omitting potentially fraudulent transactions.
Mastercard's move to bolster its capabilities in cryptocurrency fraud detection aligns with the company's broader engagement with the crypto and Web3 spaces. The financial services provider has previously launched crypto-based Mastercards in partnership with major exchanges, including Nexo and Binance. Moreover, Mastercard has been actively involved in trials related to central bank digital currencies (CBDCs) on blockchains, highlighting its commitment to exploring innovative solutions in the rapidly evolving financial landscape. The recent partnership with Feedzai underscores Mastercard's dedication to ensuring the security and integrity of financial transactions, particularly in the context of the growing influence of cryptocurrencies.
(SAVANNAH FORTIS, COINTELEGRAPH, 2023)