Feedzai and Mastercard team up to enhance crypto security, tackling challenges outlined in Feedzai’s AML Compliance Report.
Hundreds of millions of customers will have more protection against cryptocurrency theft thanks to a technology partnership between Feedzai, a financial crime and risk management service, and Mastercard, a worldwide payments technology firm.
Roughly 40% of fraudulent transactions go straight from a bank account to a cryptocurrency exchange. The State of Global Anti-Money Laundering (AML) Compliance Report 2023, a recent report from Feedzai, indicates that one of the main issues facing financial institutions is still successfully monitoring cryptocurrencies.
Feedzai and Mastercard want to include Mastercard’s crypto intelligence solution, “Ciphertrace Armada,” into Feedzai’s RiskOps platform in an effort to tackle these issues.
A comprehensive suite of artificial intelligence (AI)-based solutions is provided by RiskOps, which analyzes transaction data worth over $1.7 trillion yearly and alerts banks in milliseconds when a transaction looks suspicious.
Banks, cryptocurrency exchanges, wallets, virtual asset service providers (VASPs), and other VASPs may more accurately determine the fraud risk associated with digital asset transactions thanks to Ciphertrace Armada. Combining these two technologies allows Feedzai’s clients, who together safeguard more than 900 million people worldwide, to
will now have the ability to recognize and stop transactions involving dishonest cryptocurrency exchanges before they take place.
Enabling banks “to safeguard their clients”
The partnership’s significance was elucidated by Feedzai’s CEO, Nuno Sebastião, who said, “Mastercard’s dedication to safeguarding its global customer base against fraud perfectly aligns with Feedzai’s mission.”
Criminals utilize cryptocurrency as a component of their scam tactics, and the money they make from these schemes is frequently transferred to unreliable or otherwise dangerous cryptocurrency exchanges.
“As money laundering techniques advance and criminals become more sophisticated, it also remains a challenge for AML professionals.”Through this international collaboration, banks will be better equipped to safeguard their clients from the dangers of cryptocurrency and foster greater ecosystem trust.
The collaboration was introduced by Mastercard a few months prior, and it assists banks in detecting fraudulent activity related to account-to-account transfers. Banks can step in instantly and halt payments before money leaves a victim’s account thanks to Mastercard Consumer Fraud Risk’s artificial intelligence capabilities.
“This is an exciting step in our journey to secure the digital ecosystem,” continued Mastercard’s president of cyber and intelligence, Ajay Bhalla. We’re giving financial institutions the information they require to stop transactions using phony cryptocurrency exchanges. We are thrilled that this new collaboration will enable us to go farther in preventing fraud and payments to scams before they occur, providing customers with greater protection and choice, and—above all—insisting on building trust.
Financial institutions can halt transactions involving high-risk and possibly fraudulent cryptocurrency exchanges in real-time thanks to the combined intelligence of Feedzai and Mastercard. This allows the customers to be informed of the danger before any money leaves their account.
