Mastercard and Feedzai join forces to bolster crypto fraud protection, addressing the rising challenges of scams in the crypto space. With an estimated 40% of scam transactions directly exiting from bank accounts to crypto exchanges, the partnership aims to integrate Mastercard’s Ciphertrace Armada into Feedzai’s RiskOps platform.
Crypto Fraud Challenges for Financial Institutions
The State of Global Anti Money Laundering (AML) Compliance Report 2023 by Feedzai highlights the difficulty financial institutions face in effectively monitoring cryptocurrency transactions. The report emphasizes that preventing fraudulent activities in the crypto space is one of the most significant challenges for these institutions.
Feedzai and Mastercard plan to integrate Ciphertrace Armada, Mastercard’s crypto intelligence solution, into Feedzai’s RiskOps platform. RiskOps analyzes transaction data exceeding $1.7 trillion annually, employing AI-based solutions to detect and prevent fraud and financial crime. The collaboration aims to enable banks to identify and prevent transactions involving fraudulent crypto exchanges before they occur.
Enhanced Fraud Protection for Feedzai’s Customers
Feedzai’s customers, collectively safeguarding over 900 million consumers globally, will benefit from the combined technologies. The integration allows financial institutions to identify and halt transactions related to high-risk and potentially fraudulent crypto exchanges in real time. This proactive approach alerts customers to potential risks before funds leave their accounts.
Mastercard doubles down on effort to detect and tackle crypto fraud with AI tie-up
is doubling down on its efforts to detect and prevent fraud that’s routed through cryptocurrency exchanges.
The company told CNBC exclusively that it’s partnered with Feedzai, a…
— Muchler Buster (@MuchlerB44201) November 20, 2023
Mastercard’s Consumer Fraud Risk, powered by AI, enables banks to intervene in real-time, preventing scams in account-to-account payments before funds are transferred from a victim’s account. The collaboration with Feedzai further strengthens Mastercard’s commitment to protecting its global customer base from evolving fraud strategies involving cryptocurrencies.
Empowering Banks Against Crypto Risks
Nuno Sebastião, CEO of Feedzai, emphasized that the global partnership aligns with Feedzai’s mission to empower banks to protect customers against crypto-related risks. The collaboration aims to enhance trust in the crypto ecosystem by addressing the challenges posed by increasingly sophisticated criminals and advancing money laundering techniques.
Ajay Bhalla, President of Cyber and Intelligence at Mastercard, expressed excitement about securing the digital ecosystem. The partnership with Feedzai allows financial institutions to gain insights that enable them to prevent transactions involving fraudulent crypto exchanges. The proactive approach reinforces customer trust by preventing fraud and payments to scams before they occur.