Mastercard has announced a partnership with Feedzai, renowned for AI capabilities, combating online financial crime, and addressing the surge in cryptocurrency fraud. Feedzai’s fraud detection transforms the game, joining forces with Mastercard’s CipherTrace Armada for real-time detection, departing from traditional API access.
According to the report, Nuno Sebastio, Feedzai’s CEO, asserts the collaboration extends beyond identifying fraud to focus on potential money laundering and exploiting mule accounts. Frequently employed for illicit transactions, these accounts account for approximately forty percent of fraudulent transactions. This occurs particularly when transferring funds from a bank to a cryptocurrency exchange.
Feedzai and Mastercard Tackle Money Laundering
Mastercard’s initiative aligns with legitimizing cryptocurrencies, subjecting them to regulatory measures equivalent to traditional fiat currency. Timely amid rapid cryptocurrency integration by banks, it tackles industry concerns about lacking standards and digital asset vulnerability.
Moreover, Ajay Bhalla, Mastercard’s President, highlights the dual nature of the digital financial environment, recognizing risks and opportunities. The Feedzai partnership is pivotal for distinguishing between legitimate and suspicious transactions, vital in addressing the higher incidence of cryptocurrency fraud than traditional currency dealings.
Related Reading | Bitcoin Whales Surge: Record Holdings Fuel Market Confidence
However, Mastercard’s 2021 CipherTrace acquisition showcases its commitment to safeguarding the cryptocurrency sector with cutting-edge technology. The Feedzai collaboration reinforces Mastercard’s proactive defense against cryptocurrency fraud, fortifying its position as a vigilant defender.