Mastercard to Strengthen Policies Against Crypto Fraud Using Feedzai


Byline: Hannah Parker

Photo by Tima Miroshnichenko on Pexels

With the fast-paced evolution of digital finance, Mastercard has taken a bold step to strengthen its defences against the growing threat of cryptocurrency fraud. Mastercard is establishing new benchmarks in the safe management of virtual currencies by partnering with Feedzai, a pioneer in the application of AI for preventing online financial fraud.  

In a financial landscape where digital transactions are the norm, Mastercard’s dedication to innovation and security is evident in this cooperation, representing a significant step towards safer, more regulated cryptocurrency transactions. 

What is Mastercard’s Role in the Crypto Industry?  

Mastercard’s strategic strategies and collaborations are having a significant impact on the crypto market. The business extended its Engage programme, allowing cryptocurrency companies to use its international network to introduce card programs for cryptocurrencies that quickly convert crypto to fiat money. This is consistent with the increasing interest in digital assets by traditional finance. 

Mastercard’s Multi-Token Network (MTN) emphasises safe, scalable, and interoperable transactions while concentrating on digital assets and blockchain technology. It seeks to improve consumer protection, regulatory compliance, and identity management inside the blockchain ecosystem. 

Launched in May 2023, Mastercard’s Crypto Credential establishes guidelines for businesses operating in Web3 settings. Additionally, it gives financial institutions the back-end resources they need to offer custody and trading services for cryptocurrencies. 

Mastercard’s relationship with Feedzai, a pioneer in AI-driven financial crime prevention, further demonstrates the company’s dedication to the cryptocurrency sector and its role in boosting the security and validity of cryptocurrency transactions. Web3 analysts at Coin Insider reiterate that this partnership dramatically enhances fraud prevention and real-time monitoring in the cryptocurrency field, establishing new standards for transaction security for digital currencies. 

Mastercard Collaborates with Feedzai for Financial Crime Prevention  

Mastercard and Feedzai, an AI-driven regulatory technology platform, are collaborating to intensify their efforts against financial crimes in cryptocurrency. This strategic alliance aims to improve Mastercard’s capacity to detect and stop fraud in cryptocurrency exchanges. 

Critical components of the collaboration include:  

Integration with Mastercard’s CipherTrace Armada Platform 

Feedzai will directly interface with CipherTrace Armada, a technology that helps banks monitor transactions made on more than 6,000 cryptocurrency exchanges for indications of fraud, money laundering, and other questionable activity. By integrating CipherTrace Armada into Feedzai’s technology, this integration deviates from the conventional use of APIs. It improves real-time alerts on suspicious cryptocurrency transactions.‏ 

Enhanced fraud detection and consumer protection 

Nuno Sebastio, CEO of Feedzai, emphasises how the alliance may improve fraud detection. By identifying and stopping money laundering operations and focusing on mule accounts—which are frequently used by scammers to launder illicit funds—this partnership seeks to protect consumers. 

Using AI for Effective Transaction Analysis 

Mastercard now has access to Feedzai’s cutting-edge AI capabilities thanks to the partnership. This technology correctly recognises lawful transactions and makes it easier to identify and prevent questionable ones quickly. Notable for processing transactions totalling more than $1.7 trillion annually, Feedzai’s RiskOps platform is protected by approximately 100 patents.‏ 

Feedzai CEO and Co-Founder Nuno Sebastio optimistically told CNBC, “This will increase fraud detection by protecting unwary consumers, but will also detect potential money laundering activity and mule accounts.” 

Mastercard and Feedzai are leading the way in changing the security environment for digital currencies by utilising AI and cutting-edge monitoring technologies, taking a big step toward a more secure and open cryptocurrency ecosystem. 

Impact on the Crypto Industry  

This partnership is anticipated to significantly lower fraudulent activity and cryptocurrency fraud by utilising cutting-edge AI technology and real-time monitoring systems, enhancing overall security for cryptocurrency transactions. 

The heightened security protocols are expected to enhance customer trust in cryptocurrency usage, which might result in a broader acceptance and adoption of digital currencies as a respectable mode of payment. 

This endeavour may impact the creation of more thorough cryptocurrency regulatory frameworks. Mastercard and Feedzai are creating a precedent for how financial crimes in cryptocurrency might be addressed by showcasing successful fraud prevention techniques, which may influence future regulatory laws.  

Increased stability in the cryptocurrency market might result from improved security and less fraud risk. Both institutional and ordinary investors may be more likely to participate in cryptocurrencies if the danger of fraud and money laundering decreases, supporting the market’s general expansion and stability. 

This collaboration will probably encourage other businesses to create and implement comparable AI-driven security solutions, further revolutionising how financial transactions are tracked and protected. It will also promote innovation in the financial technology industry. 

The partnership between Mastercard and Feedzai is a big step towards improving market security for cryptocurrencies. This collaboration, which uses cutting-edge AI technology, is essential to preventing fraud and guaranteeing safer transactions.  

Related To This Story

Latest NEWS