Mastercard has announced a new partnership with AI company Feedzai to combat crypto fraud. The partnership will see Feedzai’s AI technology integrated into Mastercard’s CipherTrace Armada platform, which is used by banks to monitor transactions from over 6,000 crypto exchanges.
Thank you for reading this post, don't forget to subscribe!The integration of Feedzai’s AI is expected to significantly improve Mastercard’s ability to detect and prevent crypto fraud. Feedzai’s AI uses a variety of techniques, including machine learning and natural language processing, to identify suspicious activity. The company claims that its AI can detect fraudulent transactions in real-time, with an accuracy rate of over 99%.
Data provided by Feedzai suggests that almost 40% of fraudulent transactions originate directly from bank accounts and are directed towards cryptocurrency exchanges. Therefore, Feedzai’s software was crafted to swiftly identify and obstruct suspicious transactions within “nanoseconds” through the utilization of artificial intelligence.
Nuno Sebastio, the CEO and co-founder of Feedzai, stated that the technology will enhance fraud detection to safeguard unsuspecting consumers. Additionally, it will identify any instances of money laundering activity or the presence of 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 development trails Mastercard’s introduction of another AI-driven tool in July. The tool was implemented to assist banks in combating fraud and payment scams related to real-time transactions.
The financial services provider has established a presence in the Web3 and cryptocurrency realm, unveiling crypto-based Mastercards through collaborations with prominent crypto exchanges like Nexo and Binance.
Mastercard also recently participated in trials exploring the incorporation of central bank digital currencies (CBDCs) into blockchain systems. On October 12, the company revealed a successful endeavor in collaboration with the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre CBDC, featuring the participation of Cuscal and Mintable.
The partnership between Mastercard and Feedzai is a step in the right direction for the crypto industry. By using AI to combat crypto fraud, Mastercard is helping to make cryptocurrencies a safer and more trusted form of payment. This is a positive development for the industry as a whole.
