Credit card giant Mastercard (MA) has formed a new strategic partnership aimed at preventing cryptocurrency fraud.
The company has joined forces with Feedzai, a regulatory technology platform that is used to detect and prevent money laundering and other crimes involving crypto.
Feedzai uses artificial intelligence (A.I.) to discover instances of financial fraud using digital coins and tokens.
Going forward, Feedzai’s technology will be integrated with Mastercard’s CipherTrace Armada platform, which is used to help banks monitor transactions from over 6,000 crypto exchanges.
Mastercard says its goal is to develop real-time alerts about suspicious crypto transactions.
An estimated 40% of online financial scams today are believed to involve some type of cryptocurrency, according to Feedzai.
Blockchain analysis firm Chainalysis estimates that more than $14 billion U.S. was lost to cryptocurrency scams in 2022.
The tie-up will also give Mastercard access to Feedzai’s A.I. technology. Feedzai says its software can identify and block suspicious transactions in nanoseconds, but also detect transactions that are legitimate.
The move by Mastercard comes as the credit card issuer adopts greater use of crypto and seeks to ensure that the digital coins and tokens it deals with are legitimate.
Mastercard’s stock has gained 15% this year and currently trades at $400.30 U.S. per share.
