Mastercard announced it will be integrating a new AI tool to detect and prevent fraud that is routed through cryptocurrency exchanges.
The financial services provider Mastercard revealed a new partnership with artificial intelligence (AI) firm Feedzai, according to reports from CNBC on Nov. 20.
Mastercard says this integration aims to boost its ability to detect and prevent fraud routed through cryptocurrency exchanges.
According to the report, Feedzai will be integrated directly with Mastercard’s CipherTrace Armada platform, a tool for banks to monitor transactions from thousands of crypto exchanges for fraud and other suspicious activities.
Feedzai’s software was built to identify and block suspicious transactions in “nanoseconds” using AI. Data from Feedzai says that nearly 40% of scam transactions go directly from bank accounts to crypto exchanges.
Nuno Sebastio, the CEO and co-founder of Feedzai, said the technology will “increase fraud detection by protecting unwary consumers” while also detecting any money laundering activity or mule accounts.
“Numerous banks that believe they are preventing illegitimate cryptocurrency transactions are, in fact, only blocking transactions involving the widely recognized and regulated entities within the crypto space and omitting the rest.”
Cointelegraph has reached out to Mastercard for further comment on the development.
This comes shortly after Mastercard announced another AI-powered tool in July, which it deployed to help banks fight fraud and payment scams involving real-time payments.
The financial services provider has been making its presence known in the Web3 space and cryptocurrencies. It has launched crypto-based Mastercards in partnership with major crypto exchanges such as Nexo and Binance.
Mastercard has also recently been involved in trials wrapping central bank digital currencies (CBDCs) on blockchains. On Oct. 12, it announced a successful attempt in collaboration with the Reserve Bank of Australia (RBA) and Digital Finance Cooperative Research Centre CBDC, with participation from Cuscal and Mintable.
This article first appeared at Cointelegraph.com News