Mastercard has partnered with the Feedzai technology platform to improve the monitoring and blocking of fraud activities across transactions from over 6,000 crypto exchanges with the help of AI.
Mastercard revealed its partnership with the regulatory technology platform Feedzai which aims to diminish money laundering and financial scams online using artificial intelligence (AI) technology.
Feedzai will leverage Mastercard’s Ciphertrace set of crypto intelligence solutions to reduce the risk of account-to-account fraud at crypto exchanges. Ciphertrace includes both open and closed-source intelligence tools, designed to help governments and businesses with crypto-related compliance, including counterparty risk, AML, travel rule and source of funds verification.
Mastercard’s Ciphertrace Armada tool will be incorporated into Feedzai’s RiskOps platform. The latter analyzes transaction data and offers a suite of AI-based solutions to stop fraud and financial crime at the source.
According to Feedzai data, about 40% of scam transactions exit directly from a bank account to reach a crypto exchange without intermediaries. RiskOps already alerts banks in nanoseconds when a transaction appears fraudulent. With the addition of Ciphertrace Armada capabilities, the platform will be able to identify and prevent transactions involving fraudulent crypto exchanges before they occur.
Using AI technology, Mastercard Consumer Fraud Risk service enables banks to intervene in real-time and to stop the transaction before funds leave a victim’s account and reach a crypto exchange.
“This is an exciting step in our journey to secure the digital ecosystem. We’re providing financial institutions with the insights they need to be able to prevent transactions involving fraudulent crypto exchanges. We are delighted that, through this new partnership, we are able to go further, by helping to stop fraud and payments to scams before they take place, giving customers more choice, security and, most importantly, reinforcing trust.”
Ajay Bhalla, president of Cyber and Intelligence at Mastercard
This February, Mastercard and digital commerce company Network International jointly developed a technology using artificial intelligence (AI) to combat fraud in financial transactions in the Middle East and Africa.