Mastercard doubles down on crypto fraud prevention with AI
Mastercard doubles down on crypto fraud prevention with AI regulatory technology platform, to improve monitoring and blocking of fraud.
The company announced that Mastercard doubles down on crypto fraudhas partnered with Feedzai, a regulatory technology platform that uses artificial intelligence to combat money laundering and financial scams online.
With this partnership, Feedzai will integrate directly with Mastercard’s CipherTrace Armada platform, which helps banks detect fraud, money laundering, and other suspicious activity on over 6,000 crypto exchanges.
As opposed to an API, CipherTrace Armada will be integrated directly into Feedzai’s technology, with Feedzai “inhaling” the data to provide real-time notifications about suspicious crypto transactions.
Feedzai CEO and co-founder Nuno Sebastio said, “This will increase fraud detection by protecting unwary consumers and detecting possible money laundering and mule accounts.”
Data from Feedzai indicates that 40 percent of scam transactions today involve a crypto exchange rather than a bank account.
Feedzai’s artificial intelligence smarts will also be accessible to Mastercard as part of the tie-up. According to Feedzai, its software identifies and blocks suspicious transactions in a matter of nanoseconds while also recognizing legitimate transactions.
RiskOps, Feedzai’s transaction analysis platform, analyzes transactions valued at more than $1.7 trillion annually. The firm holds more than 100 patents and secures an average of 10 patents per year to safeguard its technology, according to its headquarters in Coimbra, Portugal, and San Mateo, California.
Many banks that believe they are preventing illegitimate cryptocurrency transactions are in fact blocking transactions involving only widely recognised and regulated entities within the crypto space and ignoring the rest,” Sebastio said.
The move marks a push from Mastercard into the market for legitimizing crypto as a mainstream financial asset and compliance frameworks as traditional assets.