Mastercard is strengthening its efforts to identify and prevent fraudulent activities associated with cryptocurrency exchanges. The company has informed CNBC about its collaboration with Feedzai, a regulatory technology platform utilizing artificial intelligence to combat online money laundering and financial scams.
In this partnership, Feedzai will seamlessly integrate with Mastercard’s CipherTrace Armada platform, designed to assist banks in monitoring transactions from over 6,000 cryptocurrency exchanges for potential fraud, money laundering, and other suspicious activities.
Unlike traditional methods using an application programming interface (API), Feedzai will directly incorporate CipherTrace Armada into its technology. This means Feedzai will absorb the data, allowing for real-time alerts on questionable cryptocurrency transactions.
Around 40% of fraudulent transactions currently originate from a bank account and go directly to a cryptocurrency exchange, based on information from Feedzai. The partnership between Mastercard and Feedzai will provide Mastercard with access to Feedzai’s advanced artificial intelligence capabilities.
Feedzai’s software boasts the ability to rapidly detect and prevent suspicious transactions in a fraction of a second, while also accurately identifying legitimate transactions.
Feedzai’s RiskOps platform examines transactions totaling more than $1.7 trillion each year. The company is based in Coimbra, Portugal, and San Mateo, California, in Silicon Valley. With nearly 100 patents, Feedzai consistently adds about 10 new patents annually to protect its technology.