Mastercard has unveiled its integration with intelligence firm, Feedzaui. This collaboration, reported by CNBC on Nov. 20, aims to fortify Mastercard’s ability to detect and prevent fraudulent activities routed through cryptocurrency exchanges.
Feedzai Partnership to Strengthen Defenses
Notably, the integration involves Feedzai directly interfacing with Mastercard’s CipherTrace Armada platform. This platform is designed for banks to monitor transactions from numerous crypto exchanges. Also, it plays a crucial role in identifying and preventing fraud and other suspicious activities.
Further Feedzai’s advanced software operates at remarkable speed, blocking suspicious transactions in “nanoseconds” through the power of AI. Startlingly, data from Feedzai reveals that almost 40% of scam transactions flow directly from bank accounts to crypto exchanges.
Nuno Sebastio on Enhanced Protection
Nuno Sebastio, CEO, and co-founder of Feedzai, emphasized that this technology is a game-changer. He stated,
“Our technology will not only increase fraud detection, safeguarding unsuspecting consumers, but also play a crucial role in detecting money laundering activity and mule accounts.”
Sebastio also highlighted a common oversight among banks. He stated,
“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.”
Mastercard’s Ongoing Commitment
This announcement follows Mastercard’s introduction of another AI-powered tool in July, deployed to assist banks in combatting fraud and payment scams related to real-time payments. Significantly, Mastercard has been actively involved in the Web3 and crypto space, launching crypto-based Mastercards in collaboration with major exchanges like Nexo and Binance.
Trailblazing in CBDCs
Mastercard’s involvement in trials wrapping central bank digital currencies (CBDCs) on blockchains showcases its commitment to pioneering advancements. The successful collaboration with the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre CBDC, with participation from Cuscal and Mintable, was announced on Oct. 12.
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