Mastercard combats crypto fraud with latest AI integration

Savannah Fortis10 hours agoMastercard combats crypto fraud with latest AI integrationMastercard announced it will integrate a new AI tool to detect and prevent fraud routed through cryptocurrency exchanges.1341 Total views21 Total sharesListen to article 0:00NewsJoin us on social networksFinancial services provider Mastercard has revealed a new partnership with artificial intelligence (AI) firm Feedzai, according to reports from CNBC on Nov. 20. 

Mastercard says this integration aims to boost its ability to detect and prevent fraud routed through cryptocurrency exchanges.

According to the report, Feedzai will be integrated directly with Mastercard’s CipherTrace Armada platform, a bank tool to monitor transactions from thousands of crypto exchanges for fraud and other suspicious activities.

Feedzai’s software was built to identify and block suspicious transactions in “nanoseconds” using AI. Data from Feedzai says that nearly 40% of scam transactions go directly from bank accounts to crypto exchanges.

Nuno Sebastio, the CEO and co-founder of Feedzai, said the technology will “increase fraud detection by protecting unwary consumers” while also detecting any money laundering activity or mule accounts.“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.”

Cointelegraph has reached out to Mastercard for further comment on the development.

Related:Mastercard partners with crypto payment firm MoonPay for Web3 services

This comes after Mastercard announced another AI-powered tool in July, deployed to help banks fight fraud and payment scams involving real-time payments. 

The financial services provider has made its presence known in the Web3 and crypto space. It has launched crypto-based Mastercards in partnership with major crypto exchanges, such as Nexo andBinance.

Mastercard has also recently been involved in trials wrapping central bank digital currencies (CBDCs) on blockchains. On Oct. 12, it announced a successful attempt in collaboration with the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre CBDC, with participation from Cuscal and Mintable.

Magazine:AI Eye: Get better results being nice to ChatGPT, AI fake child porn debate, Amazon’s AI reviews# Cryptocurrencies# Fraud# Mastercard# Cryptocurrency Exchange# AI# Money LaunderingAdd reactionAdd reactionRead moreHistory tells us we’re in for a strong bull market with a hard landingExpect some crypto companies to fail in the wake of Bitcoin"s halvingHere’s what happened in crypto today