Mastercard will improve the monitoring of crypto transactions thanks to Feedzai

20.11.2023 13:03

The payment giant Mastercard has agreed to cooperate with the regtech platform Feedzai to integrate its tools into the CipherTrace Armade product aimed at banks. CNBC writes about this.

CipherTrace Armade monitors operations with 6000 cryptoplatforms to perform AML and combat scams.

Feedzai with the help of AI will allow you to receive real-time alerts about suspicious crypto transactions and block them "in a matter of nanoseconds".

The firm owns about 100 patents and increases their number by 10 on average per year to protect technologies.

CEO and co-founder of Feedzai Nuno Sebastio said that the algorithms allow to identify fraudsters' accounts used to launder illegally obtained funds.

According to the company, ~40% of such transactions are withdrawn directly from the bank account to the exchange. Over the past year, the platform has verified transactions worth over $1.7 trillion.

"There are many examples when banks, in order to prevent illegal transactions, block those involving widely recognized and regulated organizations and skip the rest," explained Sebastio.

According to the agency, the Mastercard partnership marks the entry of the payment giant into the market to legitimize digital assets, which may be subject to the same rules and compliance framework as TradFi.

"Data shows that fraud in transactions when people buy cryptocurrency is five times higher than for those where only fiat is used," said Ajay Bhalla, Mastercard's president of cybersecurity solutions.

The top manager said that the partnership with Feedzai will allow financial institutions to "distinguish "good" operations from "bad" ones."

Recall that in October 2022 Mastercard announced the Crypto Secure tool. It allows banks to identify and stop transactions from crypto exchanges subject to fraudulent practices.

In July 2023, the director of digital technologies of the payment company, Jorn Lambert, announced the need to combine blockchain and TradFi.

This was preceded by the publication of plans about the company's desire to become an intermediary for traditional financial institutions in launching cryptocurrency trading.

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