By Bitcoin.com - 5 months ago - Reading Time: 2 minutes
Mastercard and Feedzai Collaborate to Increase Crypto Fraud Protection for 900 Million Consumers Globally
Mastercard is collaborating with Feedzai to “increase crypto fraud protection for hundreds of millions of consumers.” In pairing the technologies offered by the two companies, “Feedzai’s customers, who collectively protect over 900 million consumers globally, will now be able to identify and prevent transactions involving fraudulent crypto exchanges before they occur,” Mastercard explained.
Mastercard Expanding Crypto Fraud Protection
Mastercard announced Monday that the company is collaborating with Feedzai, a leading provider of financial crime and risk management solutions, to “increase crypto fraud protection for hundreds of millions of consumers.”
The payment giant detailed that Feedzai will “leverage Mastercard’s Ciphertrace crypto intelligence solutions to reduce the risk of account-to-account fraud flowing into crypto exchanges.” This integration will involve integrating Mastercard’s Ciphertrace Armada into Feedzai’s Riskops platform, which analyzes transaction data totaling over $1.7 trillion annually. Riskops also offers a comprehensive suite of artificial intelligence (AI)-based solutions designed to stop fraud and financial crime at the source.
Noting that “Ciphertrace Armada allows banks, crypto exchanges, wallets, crypto ATMs, and other virtual asset service providers (VASPs) to better assess the fraud risk in digital asset transactions,” Mastercard described:
In pairing these technologies together, Feedzai’s customers, who collectively protect over 900 million consumers globally, will now be able to identify and prevent transactions involving fraudulent crypto exchanges before they occur.
“The combined intelligence means that financial institutions can stop transactions involving high risk and potentially fraudulent crypto exchanges in real time, alerting the customer to the risk before money leaves their account,” the payments giant noted.
The announcement further explains that currently, an estimated 40% of fraudulent transactions directly flow from a bank account to a cryptocurrency exchange. As per Feedzai’s latest report on global anti-money laundering compliance, effective monitoring of cryptocurrency remains one of the significant challenges for financial institutions.
Feedzai CEO Nuno Sebastião commented: “Criminals use crypto as part of their scam strategies, with the scam proceeds often ending up being funneled to an unauthorized or otherwise risky crypto exchange. It also continues to remain a challenge for AML professionals as criminals become ever more sophisticated and money laundering techniques advance.” The executive continued:
This global partnership will further empower banks to protect their customers’ against the risks associated with crypto and instill further trust in the ecosystem.
What do you think about Mastercard and Feedzai collaborating to expand crypto fraud protection for hundreds of millions of consumers worldwide? Let us know in the comments section below.
Original source: Bitcoin.com