Mastercard Partners with Feedzai to Enhance Cryptocurrency Transaction Monitoring
Date: 2023-11-22 Author: Dima Zakharov Categories: IN WORLD
Boosting Cryptocurrency Transaction Security
Payment giant Mastercard has joined forces with the regtech platform Feedzai to integrate advanced tools into the CipherTrace Armade product, designed for banks. This strategic collaboration is set to revolutionize the monitoring of cryptocurrency transactions, ensuring real-time alerts for suspicious activities and swift blocking capabilities.
Feedzai’s AI-Powered Solutions
Utilizing artificial intelligence, Feedzai’s technology allows instantaneous detection of suspicious crypto transactions, enabling rapid intervention in a matter of nanoseconds. The company, holding approximately 100 patents, consistently expands its technology protection arsenal with an average annual increase of 10 patents.
Addressing Fraudulent Activities
Nuno Sebastiao, CEO, and Co-founder of Feedzai, highlighted that their algorithms can identify fraudulent accounts involved in money laundering activities. According to the company’s data, approximately 40% of such transactions involve the direct transfer of funds from a bank account to a cryptocurrency exchange. Over the past year, Feedzai has scrutinized transactions exceeding $1.7 trillion.
Mastercard’s Move into Legitimizing Digital Assets
The Mastercard-Feedzai partnership marks Mastercard’s entry into the market to legitimize digital assets. This move indicates that digital assets will be subject to the same rules and compliance frameworks as traditional finance (TradFi). Ajay Bhalla, President of Mastercard’s Cyber and Intelligence Solutions, emphasized the alarming rate of fraud in cryptocurrency transactions compared to fiat-only transactions.
Strengthening Financial Institutions
Ajay Bhalla expressed that the collaboration with Feedzai will empower financial institutions to distinguish between “good” and “bad” operations. This aligns with Mastercard’s commitment to enhancing cybersecurity in the evolving landscape of digital transactions.
Mastercard’s Crypto Secure Tool
In October 2022, Mastercard introduced the Crypto Secure tool, enabling banks to identify and prevent transactions involving fraudulent practices on crypto exchanges. The ongoing efforts by Mastercard signify its dedication to bridging the gap between blockchain and traditional finance, as highlighted by Jorn Lambert, the company’s Director of Digital Technologies, in July 2023.
