Mastercard has announced a partnership with AI-based regulatory technology firm Feedzai to strengthen its defense against cryptocurrency fraud. This collaboration aims to enhance real-time fraud detection and security in the digital asset space.
Enhanced AI Integration for Real-Time Crypto Fraud Detection
Mastercard is ramping up its efforts to combat cryptocurrency fraud by partnering with Feedzai, a leader in using artificial intelligence for online financial crime prevention.
This collaboration, recently confirmed in an interview with CNBC, marks a significant step in Mastercard’s strategy to tackle the increasing challenges of digital financial scams.
At the core of this partnership is the integration of Feedzai’s advanced technology with Mastercard’s CipherTrace Armada platform.
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This integration goes beyond traditional API access, allowing for real-time monitoring and alerting of suspicious cryptocurrency transactions. This system offers a crucial additional security layer, protecting consumers from potential fraud.
Feedzai CEO Nuno Sebastio emphasized that the collaboration’s goal extends beyond mere scam detection. It also aims to curb money laundering activities and the use of mule accounts for laundering illicit funds.
Considering that an estimated 40% of scam transactions move from bank accounts to crypto exchanges, this partnership is deemed essential for securing financial transactions in the constantly evolving cryptocurrency market.
Mastercard and Feedzai: Pioneering a Safer Crypto Environment
Mastercard’s recent partnership with Feedzai represents a crucial step towards legitimizing cryptocurrencies within the mainstream financial sector.
As banks and financial institutions globally delve into the realm of digital assets, concerns about the lack of regulatory frameworks and vulnerability to fraud have been growing.
This alliance aims to address these critical issues, ensuring that cryptocurrencies are subject to the same level of scrutiny and compliance as traditional financial assets.
Addressing Crypto’s Elevated Risk with Advanced Solutions
Ajay Bhalla, President of Mastercard, highlights the dual nature of today’s interconnected digital finance world: while it offers unprecedented opportunities, it also comes with heightened risks, particularly in the crypto sector.
With reports indicating that fraud in crypto transactions is five times more prevalent than in fiat transactions, the partnership with Feedzai is a timely intervention.
It empowers financial institutions with the necessary tools to differentiate between legitimate and fraudulent transactions effectively.
Further solidifying its commitment to this cause, Mastercard’s collaboration with Feedzai builds on its previous acquisition of CipherTrace in 2021.
This move underlines Mastercard’s dedication to fortifying the crypto space against fraud, utilizing state-of-the-art technologies to pave the way for a more secure digital finance ecosystem.