Mastercard to monitor bad crypto transactions with AI
Mastercard has teamed up with Feedzai to alert about suspicious crypto transactions in real time.
Payments giant Mastercard has entered into a partnership with Feedzai, an artificial intelligence (AI) powered risk management system, in a bid to increase crypto fraud protection among trading platforms.
In a press release on Nov. 20, Feedzai said both companies will integrate Mastercard’s blockchain forensic product, Ciphertrace Armada, into Feedzai’s platform dubbed RiskOps.
With the combined technologies, Mastercard and Feedzai want to let financial institutions intervene in unauthorized transactions in real-time to stop payment before funds leave a victim’s account on a crypto exchange.
“We are delighted that, through this new partnership, we are able to go further, by helping to stop fraud and payments to scams before they take place, giving customers more choice, security and, most importantly, reinforcing trust.”
Ajay Bhalla, President of Cyber and Intelligence at Mastercard
According to Feedzai data, around 40% of scam transactions go from a financial institution to a crypto exchange. In an interview with CNBC, Bhalla revealed that crypto fraud is “five times higher than regular fiat transactions,” adding that the alliance between the two companies will make it possible “to tell good transactions from bad.”
Mastercard acquired CipherTrace in 2021 as part of its plans to accelerate and expand its crypto-related strategy. Details of the acquisition were not disclosed.
