Fighting Crypto Fraud: Mastercard Teams Up With AI Firm

In order to fight crypto fraud, it seems that Mastercard decided to team up with an intelligence AI firm. Check out the latest reports about the matter below.

Payments company Mastercard has teamed up with an AI firm to tackle cryptocurrency fraud.

The company intends to merge its CipherTrace Armada crypto intelligence solution with a platform developed by financial risk management solution Feedzai, as per a press release.

According to Feedzai, almost 40% of fraudulent transactions originate from a bank account before being transferred to a cryptocurrency exchange.

The AI risk management company has developed a platform called RiskOps that analyzes transaction data to prevent fraud and financial crime using AI.

In the meantime, CipherTrace Armada aims to help crypto exchanges, wallets, banks, and other digital asset companies assess fraud risks in crypto transactions.

Mastercard’s President of Cyber and Intelligence, Ajay Bhalla, believes that integrating the two fraud-prevention products will aid in the real-time detection and prevention of fraudulent cryptocurrency transactions.

“We’re providing financial institutions with the insights they need to be able to prevent transactions involving fraudulent crypto exchanges. 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.”

Feedzai works with companies that have more than 900 million combined customers around the globe.

Back in October, we revealed that Mastercard has successfully conducted a pilot of central bank digital currency in collaboration with the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre.

The objective of the project was to determine how authorized parties, who have undergone the know-your-customer protocols, could hold, use and redeem CBDCs.

The project also tested the process of purchasing an Ethereum-based NFT by locking the pilot CBDC and minting an equivalent amount of Ethereum-based wrapped coins.