Mastercard strengthens fraud prevention in crypto space through AI partnership with Feedzai
These moves underscore Mastercard's commitment to staying at the forefront of financial innovation and security in the evolving landscape of digital finance.
artificial intelligence
Highlights
- Feedzai's swift AI integration on Mastercard's platform ensures real-time monitoring of transactions from various crypto exchanges
- Beyond fraud prevention, the collaboration aims to protect consumers, identify money laundering, and detect mule accounts
In a strategic move to enhance its ability to detect and prevent fraudulent activities linked to cryptocurrency exchanges, Mastercard has unveiled a collaboration with artificial intelligence (AI) firm Feedzai. This partnership is designed to fortify Mastercard's defence against fraud in the rapidly evolving landscape of digital currencies.
Feedzai is proud to partner with financial services giant @Mastercard to protect consumers worldwide from the threat of cryptocurrency fraud.
Under the partnership, Feedzai will integrate Mastercard’s crypto intelligence solution, @ciphertrace Armada, into our RiskOps platform,… pic.twitter.com/T711JkxMJw— Feedzai (@feedzai) November 20, 2023advertisement
Feedzai's AI integration with CipherTrace Armada platform
The integration will see Feedzai's advanced AI software seamlessly incorporated into Mastercard's CipherTrace Armada platform. This platform is a vital tool for financial institutions, enabling them to monitor transactions originating from numerous cryptocurrency exchanges for potential fraud and other suspicious activities.
Feedzai's software operates remarkably quickly, identifying and blocking suspicious transactions in nanoseconds. According to data from Feedzai, a significant portion nearly 40 percent of fraudulent transactions involve the direct transfer of funds from bank accounts to cryptocurrency exchanges.
Nuno Sebastio, the CEO and co-founder of Feedzai, highlighted that the technology's implementation will not only bolster fraud detection to safeguard unsuspecting consumers but also play a crucial role in identifying and preventing money laundering activities and mule accounts.
Numerous banks that believe they are preventing illegitimate cryptocurrency transactions are, in fact, only blocking transactions involving the widely recognised and regulated entities within the crypto space and omitting the rest.
This collaboration follows Mastercard's recent introduction of an AI-powered tool in July, aimed at assisting banks in combatting fraud and payment scams associated with real-time payments.
Mastercard's expanding presence in the crypto space
Mastercard's foray into the cryptocurrency space has been notable, with the launch of crypto-based Mastercards in partnership with major exchanges like Nexo and Binance. Beyond consumer-facing initiatives, Mastercard has also actively participated in trials involving central bank digital currencies (CBDCs) on blockchains.
A recent success was announced on 12 October. Mastercard collaborated with the Reserve Bank of Australia, the Digital Finance Cooperative Research Centre CBDC, Cuscal, and Mintable for a trial involving the issuance of CBDCs on a blockchain.
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