Mastercard Teams Up with Feedzai to Combat Crypto Fraud With AI
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Mastercard announced a new partnership with Feedzai to enhance the detection and prevention of fraud crypto transactions.
Mastercard has taken a significant step to fortify the cryptocurrency market against fraud and scams. The company recently revealed its partnership with Feedzai to leverage artificial intelligence for improved monitoring and blocking of fraudulent activities in crypto transactions.
As per the partnership, Mastercard’s CipherTrace Armada technology — renowned for assisting banks in overseeing over 6,000 crypto exchanges, will now be directly embedded into Feedzai’s technology. The integration will enable real-time alerts for suspicious crypto transactions, enhancing the effectiveness of fraud detection.
Utilizing AI to Prevent Crypto Scams
The partnership is not just about protecting consumers from fraud. According to Nuno Sebastio, CEO and co-founder of Feedzai, it will also play a vital role in identifying potential money laundering activities and mule accounts.
Mule accounts — often exploited by fraudsters to launder funds, are a significant concern in the crypto world.
Feedzai’s advanced AI is capable of processing transactions worth over $1.7 trillion annually, and will be a valuable asset to Mastercard. The AI’s ability to swiftly differentiate between legitimate and suspicious transactions aims to streamline transaction monitoring.
Global Banks Show Interest In Web3 Initiatives
Mastercard’s initiative is a strong signal towards the legitimization of cryptocurrency as a mainstream financial asset, subject to similar regulatory frameworks as traditional financial instruments. The move reflects a growing trend among banks and financial institutions to integrate crypto into their core offerings, albeit cautiously due to regulatory uncertainties.
Despite the increasing interest, the integration of cryptocurrency in mainstream banking faces hurdles, primarily due to the lack of comprehensive regulations and its association with fraud and scams.
Major banks, including JPMorgan, NatWest, and HSBC, have shown reluctance in associating with crypto, citing fraud risks. This hesitance clashes with aspirations in some regions, like the U.K. planning to become leaders in the emerging Web3 space.
Mastercard’s extensive global network positions it as a key player in addressing these concerns and facilitating safer crypto transactions.With the company’s initiative to integrate AI-driven security measures, the landscape of cryptocurrency transactions is poised for a significant shift.
This partnership could lead to a more secure, regulated and widely accepted use of digital assets in the financial sector, potentially influencing other players in the industry to follow suit.
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