Mastercard Teams Up with Feedzai to Fight Cryptocurrency Fraud

The integration involves Feedzai's software being incorporated into Mastercard's CipherTrace Armada platform.

Mastercard Teams Up with Feedzai to Fight Cryptocurrency Fraud
Mastercard Teams Up with Feedzai to Fight Cryptocurrency Fraud

On November 20, CNBC reported that financial services provider Mastercard announced a new partnership with artificial intelligence (AI) company Feedzai.

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.

The financial services provider has been actively establishing itself in the cryptocurrency and Web3 markets.

Mastercards based on cryptocurrencies have been introduced in collaboration with prominent cryptocurrency exchanges, including Binance and Nexo.

Mastercard has also recently participated in blockchain-based trials for central bank digital currencies (CBDCs).

It declared a successful endeavor on October 12 in conjunction with the Reserve Bank of Australia (RBA), the Digital Finance Cooperative Research Centre CBDC, Cuscal, and Mintable.