Mastercard Integrates AI Tool to Combat Crypto Fraud
20 Nov, 2023 ● Coin news
According to reports from CNBC on Nov. 20, financial services giant Mastercard announced a new collaboration with artificial intelligence (AI) startup Feedzai.
Mastercard stated that this integration will improve its capacity to identify and prevent fraud that is routed through cryptocurrency exchanges.
The report claims that Feedzai will be directly integrated with Mastercard's CipherTrace Armada platform, which is a tool used by banks to keep an eye on thousands of cryptocurrency exchange transactions for fraud and other questionable activity.
The software developed by Feedzai uses artificial intelligence to identify and block suspicious transactions in "nanoseconds."
Nearly 40% of fraudulent transactions, according to Feedzai data, go directly from bank accounts to cryptocurrency exchanges.
The CEO and co-founder of Feedzai, Nuno Sebastio, stated that the technology will "increase fraud detection by protecting unwary consumers" and identify any mule accounts or money laundering activity.
“Numerous banks that believe they are preventing illegitimate cryptocurrency transactions are, in fact, only blocking transactions involving the widely recognized and regulated entities within the crypto space and omitting the rest.”
This comes shortly after Mastercard unveiled another AI-powered tool in July, aimed at assisting banks in combating real-time payment fraud and scams.
Sources:
https://cointelegraph.com/news/mastercard-combats-crypto-fraud-with-latest-ai-integration
