Mastercard asserts that this integration will enhance its capacity to identify and thwart fraudulent activities that traverse cryptocurrency exchanges.
Feedzai will be directly incorporated with Mastercard’s CipherTrace Armada platform, a tool that enables banks to monitor transactions from thousands of cryptocurrency exchanges for fraud and other suspicious activities, according to the report.
Feedzai created software that uses artificial intelligence to quickly identify and block suspicious transactions. According to data from Feedzai, nearly 40% of fraudulent transactions flow directly from bank accounts to cryptocurrency exchanges.
The technology, according to Feedzai’s CEO and co-founder Nuno Sebastio, will “increase fraud detection by protecting unwary consumers” and “detect money laundering activity and mule accounts.”
“Numerous banks that believe they are preventing illegitimate cryptocurrency transactions are, in fact, only blocking transactions involving the widely recognized and regulated entities within the crypto space and omitting the rest.”
This follows Mastercard’s July announcement of the deployment of an additional AI-powered tool designed to assist banks in combating fraud and payment schemes involving real-time transactions.