March 27, 2024
Mastercard Fortifies Crypto Defense with AI Partnership Against Fraud
AI

Mastercard Fortifies Crypto Defense with AI Partnership Against Fraud

In a notable move aimed at fortifying its defences against fraud associated with cryptocurrency transactions, Mastercard has entered into a strategic partnership with artificial intelligence (AI) firm Feedzai. The primary objective of this collaboration is to enhance Mastercard’s capabilities in identifying and preventing fraudulent activities routed through cryptocurrency exchanges. The integration will see Feedzai’s advanced AI software directly interfacing with Mastercard’s CipherTrace Armada platform, providing banks with a powerful tool to monitor transactions across a multitude of crypto exchanges.

Feedzai’s AI technology is renowned for its ability to swiftly identify and block suspicious transactions, operating at a near-instantaneous speed measured in nanoseconds. By leveraging this AI prowess, Mastercard aims to strengthen its fraud detection mechanisms, ensuring swift protection for unsuspecting consumers. Moreover, the collaboration will also contribute to the detection of potential money laundering activities and the identification of mule accounts.

The prevalence of scams and fraudulent transactions within the cryptocurrency space is a growing concern, with a significant portion of such activities involving direct transfers from bank accounts to crypto exchanges. Feedzai’s advanced algorithms, integrated into Mastercard’s ecosystem, will bolster the financial services provider’s ability to combat these illicit activities effectively.

Nuno Sebastio, the CEO and co-founder of Feedzai, emphasized the significance of the technology in not only protecting consumers but also uncovering fraudulent schemes. Sebastio highlighted that many banks while believing they are preventing illegitimate cryptocurrency transactions, may inadvertently overlook transactions involving less regulated entities within the crypto space. The collaboration with Feedzai aims to address this gap and ensure a more comprehensive approach to fraud prevention in the crypto domain.

This partnership comes on the heels of Mastercard’s ongoing efforts to establish a robust presence in the Web3 space and the broader cryptocurrency landscape. In July, the financial services provider introduced an AI-powered tool designed to assist banks in combating fraud and payment scams associated with real-time payments. Additionally, Mastercard has ventured into the crypto market by launching crypto-based Mastercards in collaboration with major exchanges such as Nexo and Binance.

Moreover, the company has actively participated in trials related to central bank digital currencies (CBDCs) on blockchains, exemplified by its successful collaboration with the Reserve Bank of Australia (RBA) and Digital Finance Cooperative Research Centre CBDC. The involvement of Mastercard in cutting-edge initiatives reflects its commitment to staying at the forefront of technological advancements within the financial industry.

As the financial landscape continues to evolve with the rise of decentralized technologies, Mastercard’s strategic collaborations and technological innovations underscore its determination to remain a key player in shaping the future of finance.

Image: Wallpapers.com

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