By CryptoNews - 5 months ago - Reading Time: 1 minutes
Mastercard Partners With AI Firm Feedzai to Curb Crypto Scams
Source: Adobe StockMastercard is intensifying its efforts to identify and prevent fraud within crypto exchanges. Mastercard announced a partnership with Feedzai, a regulatory technology platform leveraging artificial intelligence to combat online money laundering and crypto scams.
Mastercard and Feedzai to Leverage AI to Detect Crypto Scams
Through this collaboration, Feedzai will directly integrate with Mastercard’s CipherTrace Armada platform, designed to assist banks in monitoring transactions from over 6,000 crypto exchanges for fraud, money laundering, and suspicious activities.
Unlike the traditional use of an API, Feedzai will embed CipherTrace Armada directly into its technology, allowing for real-time alerts on questionable crypto transactions.
Feedzai CEO Nuno Sebastio emphasized the partnership’s potential to enhance fraud detection, protecting consumers and identifying potential money laundering and mule accounts—accounts exploited by fraudsters to launder illicit funds.
Feedzai Analyzes Transactions Totalling Over $1.7 Trillion Annually
Approximately 40% of scam transactions currently involve funds moving directly from a bank account to a crypto exchange, according to Feedzai data.
The collaboration will grant Mastercard access to Feedzai’s AI capabilities, enabling quick identification and blocking of suspicious transactions while recognizing legitimate ones.
Feedzai’s RiskOps platform analyzes transactions totaling over $1.7 trillion annually, with the firm holding nearly 100 patents to safeguard its technology.
Sebastio highlighted a common oversight by some banks, stating that many only block transactions involving recognized and regulated entities within the crypto space, omitting others.
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Original source: CryptoNews