In a strategic move to fortify its defense against fraud in the cryptocurrency realm, Mastercard has unveiled a collaboration with Feedzai, a regulatory technology platform specializing in artificial intelligence-driven solutions to combat online money laundering and crypto scams.
The partnership centers on Feedzai’s integration with Mastercard’s CipherTrace Armada platform, an initiative aimed at empowering banks to monitor transactions from over 6,000 crypto exchanges for signs of fraud, money laundering, and suspicious activities. Notably, Feedzai will embed CipherTrace Armada directly into its technology, allowing for real-time alerts on potentially dubious crypto transactions.
Nuno Sebastio, CEO of Feedzai, underscored the partnership’s significance in elevating fraud detection capabilities, emphasizing the potential to safeguard consumers and identify potential money laundering and mule accounts—accounts exploited by fraudsters for illicit fund laundering.
Feedzai’s vast transaction analysis prowess, totaling over $1.7 trillion annually through its RiskOps platform, positions it as a robust ally for Mastercard in combating the evolving landscape of crypto scams. Sebastio pointed out that approximately 40% of current scam transactions involve the direct movement of funds from a bank account to a crypto exchange, a trend that this collaboration aims to address.
One key aspect of the collaboration is the quick identification and blocking of suspicious transactions while still recognizing legitimate ones, thanks to Feedzai’s advanced AI capabilities. Sebastio also highlighted a common oversight by some banks, emphasizing that many only block transactions involving recognized and regulated entities within the crypto space, leaving potential gaps in their defense against fraudulent activities.
As Mastercard continues to prioritize the security of crypto transactions, the collaboration with Feedzai signifies a strategic move to stay ahead in the ever-evolving landscape of financial technology and safeguard users from emerging threats.