Mastercard Collaborates with Feedzai to Improve Fraud Detection on Crypto Exchanges

Mastercard, financial services provider (photo: doc.pexels)

JAKARTA - Mastercard, a financial services provider, announced a new partnership with artificial intelligence company Feedzai, on November 20.

This integration aims to enhance Mastercard's ability to detect and prevent fraud involving cryptocurrency exchanges.

According to a CNBC report, Feedzai will be integrated directly with Mastercard's CipherTrace Armada platform, a tool for banks to monitor transactions from thousands of crypto exchanges to detect fraud and other suspicious activity.

Feedzai software is built to identify and block suspicious transactions in “nanoseconds” using artificial intelligence. Data from Feedzai states that nearly 40% of fraudulent transactions originate directly from bank accounts to crypto exchanges.

Nuno Sebastio, CEO and co-founder of Feedzai, said that the technology will "improve fraud detection by protecting unwary consumers" while detecting money laundering or account mule activity.

"Many banks who believe they are preventing illegal crypto transactions, are actually only blocking transactions involving widely recognized and regulated crypto entities and ignoring others," he said.

This comes soon after Mastercard announced another artificial intelligence-based tool in July, implemented to help banks fight fraud and payment schemes involving real-time payments.

This financial services provider has made its presence felt in the Web3 and crypto space. They have launched crypto-based Mastercard cards in partnership with major crypto exchanges, such as Nexo and Binance.

Mastercard was also recently involved in a trial of pairing a central bank digital currency (CBDC) on the blockchain. On October 12, they announced a successful effort in collaboration with the Reserve Bank of Australia and the Digital Finance Cooperative Research Center CBDC, with participation from Cuscal and Mintable.