Mastercard Combats Crypto Fraud With Latest AI Integration – Mastercard has announced a collaboration with AI company Feedzai to enhance its capability in identifying and preventing fraud associated with cryptocurrency exchanges. As per the report, Feedzai is set to be seamlessly integrated into Mastercard’s CipherTrace Armada platform, a banking tool designed to oversee transactions from numerous cryptocurrency exchanges for signs of fraud and suspicious behavior.
Feedzai’s software, powered by AI, is crafted to swiftly identify and obstruct suspicious transactions within “nanoseconds.” According to Feedzai’s data, approximately 40% of fraudulent transactions take a direct route from bank accounts to cryptocurrency exchanges. Nuno Sebastio, the CEO and co-founder of Feedzai, stated that this technology will enhance fraud detection, safeguarding unsuspecting consumers, and simultaneously detecting potential money laundering or 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.” Following Mastercard’s announcement in July, the company introduced an additional AI-driven tool aimed at assisting banks in combatting fraud and thwarting payment scams associated with real-time transactions.
Establishing a notable presence in the Web3 and cryptocurrency realm, the financial services provider has introduced crypto-based Mastercards through collaborations with major exchanges like Nexo and Binance. Moreover, Mastercard has actively engaged in trials involving the integration of central bank digital currencies (CBDCs) on blockchains. On Oct. 12, the company revealed a successful joint effort with the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre CBDC, featuring participation from Cuscal and Mintable.