Mastercard Partners With Feedzai To Tackle Crypto Fraud: Report

Mastercard Inc (NYSE: MA) is reportedly partnering with Feedzai, a regulatory technology platform, to combat money laundering and financial scams online using artificial intelligence.

As per the deal, Feedzai will integrate with Mastercard's CipherTrace Armade platform to help banks monitor transactions from over 6,000 crypto exchanges for fraud and other suspicious activity, as per CNBC.

The move marks Mastercard's aim to drive the legalization of crypto as a mainstream financial asset, which can be subjected to the same rules and compliance frameworks as traditional assets.

Ajay Bhalla, president of cyber and intelligence solutions told CNBC that the "interconnectedness of life today and increasing digital penetration of finance has brought risk as well as opportunity....Our latest data shows fraud on transactions where people are buying crypto is 5 times higher than regular fiat transactions."

As per the report, crypto-related losses rose 79% Y/Y last year due to theft and scams.

Last week, MA's senior executive reportedly slammed the usage of central bank digital currencies, claiming there isn't enough reason for the widespread use of them right now.

Also, Ashok Venkateswaran, Mastercard's lead for blockchain and digital assets in Asia-Pacific, asserted the current landscape doesn't provide sufficient grounds for the widespread adoption of central bank digital currencies (CBDCs), making broad implementation challenging.

Price Action: MA shares are trading higher by 0.12% at $400.80 premarket on the last check Monday.

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