Mastercard Partners With AI Firm Feedzai to Curb Crypto Scams Mastercard is intensifying its efforts to identify and prevent fraud within crypto exchanges. Mastercard announced a partnership with
Feedzai, a regulatory technology platform leveraging artificial intelligence to combat online money laundering and crypto scams. Through this collaboration,
Feedzai will directly integrate with Mastercard’s CipherTrace Armada platform, designed to assist banks in monitoring transactions
from over 6,000 crypto exchanges for fraud, money laundering, and suspicious activities. Unlike the traditional use of an API,
Feedzai will embed CipherTrace Armada directly into its technology, allowing for real-time alerts
on questionable crypto transactions. Feedzai CEO Nuno Sebastio emphasized the partnership’s potential to enhance fraud detection, protecting consumers and identifying potential money laundering and mule accounts—
accounts exploited by fraudsters to launder illicit funds.
Approximately
40% of scam transactions currently involve funds moving directly from a bank account to a crypto exchange, according to Feedzai data. The collaboration will grant Mastercard access to Feedzai’s AI capabilities,
enabling quick identification and blocking of suspicious transactions while recognizing legitimate ones. Feedzai’s RiskOps platform analyzes
transactions totaling over $1.7 trillion annually, with the firm holding nearly 100 patents to safeguard its technology.
