Mastercard collaborates with Feedzai to combat crypto fraud
In a bid to prevent and detect fraud in the cryptocurrency space, Mastercard has teamed up with Feedzai, a leading regulatory technology platform. This partnership aims to utilize artificial intelligence to combat money laundering and financial scams reaching over 6,000 crypto exchanges.
The collaboration involves Feedzai integrating directly with Mastercard’s CipherTrace Armada platform to monitor crypto exchanges for fraudulent activities. Through this, Feedzai enables real-time alerts about suspicious transactions, enhancing fraud detection and money laundering prevention.
Additionally, Mastercard will leverage Feedzai’s advanced artificial intelligence capabilities. It is a strategic move by Feedzai in response to a growing need for comprehensive regulations and applications to combat fraud and scams in the cryptocurrency space.
The move signals Mastercard’s push to establish cryptocurrencies as a mainstream financial asset and underscores the growing interest by banks and financial institutions in the crypto market. Notably, the company is in direct competition with Visa, another major player in the payments and fintech services sector.
However, the substantial increase in crypto-related theft and scams in the past year has raised concerns among financial institutions. According to data from Chainalysis, there was a 79% global increase in crypto-related losses in 2022 compared to the previous year.
Amid this backdrop, Mastercard’s collaboration with Feedzai holds significance as it contributes to enhancing security and fraud prevention measures in the cryptocurrency market. With the goal of legitimizing cryptocurrencies and making them subject to the same compliance frameworks as traditional assets, the move represents a notable advancement in the financial sector’s engagement with crypto.
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