Mastercard Teams Up with AI Firm Feedzai to Amplify Fraud Detection in Crypto Transactions
Summary:
Mastercard has partnered with AI firm Feedzai to enhance its capability to detect and prevent cryptocurrency exchange frauds. According to Feedzai's data, around 40% of scam transactions occur from bank accounts to crypto exchanges. The partnership will allow Feedzai's technology to integrate with Mastercard's CipherTrace Armada platform, stepping up fraud detection. This move comes on the back of Mastercard's increased presence in the cryptocurrency and Web3 space, including trials for wrapping central bank digital currencies on blockchains.
Mastercard, the prominent financial services corporation, has unveiled its collaboration with an artificial intelligence (AI) company Feedzai, as per CNBC coverage dated November 20. The aim of this merging is to amplify Mastercard's proficiency in identifying and halting fraud emerging via cryptocurrency exchanges. As outlined in the news, Feedzai's technology will directly assimilate with Mastercard's CipherTrace Armada, a resource that enables banks to scrutinize transactions from a multitude of crypto exchanges for fraudulent or dubious activities. Feedzai's innovative software is designed to spot and halt dubious transactions almost instantly, thanks to AI. According to Feedzai's data, approximately 40% of fraudulent transactions proceed directly from bank accounts to crypto exchanges. Nuno Sebastio, Feedzai's CEO and co-founder, asserts that their technology will enhance fraud detection thereby safeguarding unsuspecting consumers, whilst simultaneously identifying money laundering activities and mule accounts. He also emphasized that many banks mistakenly believe they are curbing illicit cryptocurrency transactions, when they are only blocking transactions related to renowned and regulated entities within the crypto industry and neglecting everything else. As of now, Mastercard has not responded to additional queries about the recent development from Cointelegraph. Following this, Mastercard has recently introduced another AI-centric resource in July, mainly to assist banks in countering fraud and payment scams related to real-time transactions. The company has been progressively marking its presence in the cryptocurrencies and Web3 domain. Cryptocurrency-based Mastercards have been launched in coordination with major crypto exchanges like Nexo and Binance. Mastercard is also known to be participating in trials regarding the wrapping of Central Bank Digital Currencies (CBDCs) on blockchains. On October 12, it revealed the success of an attempt undertaken in association with the Reserve Bank of Australia (RBA) and Digital Finance Cooperative Research Centre CBDC, including participants like Cuscal and Mintable.
Published At
11/20/2023 1:29:44 PM
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