Mastercard launches a new crypto fraud protection tool
According to Chainalysis, the volume of illegal cryptocurrency transactions fell by 15% in 2022. This is due to both the bear market and the intensified struggle of financial companies against crypto-fraudsters. The new service from Mastercard is a bright example of such counteraction.
Mastercard international payment system introduced a new app for managing risks within the Mastercard network. The Crypto Secure app will help banks and other Mastercard issuers detect and prevent suspicious crypto transactions.
The service is powered by CipherTrace, a blockchain security startup Mastercard acquired last year. A similar service but for fiat money has already been launched by Mastercard. The issue of digital asset protection has emerged with the increase in the number of exchanges connected to the Mastercard network (currently more than 2,400 platforms).
Crypto Secure is a hybrid of artificial intelligence algorithms, blockchain data and public record of crypto transactions. While the app itself cannot block fraudulent transactions, it provides banks and other entities on the Mastercard network with recommendations for a particular transaction.
The platform provides a color-coded dashboard that will allow you to determine the degree of risk of the transaction, as well as the exchange or wallet transferring funds. To put it simply, artificial intelligence forms a kind of “trust rating” and marks each transaction with the appropriate color based on the data from the blockchain and the Mastercard network.
The bank or any other entity will be able to decide to cancel the transfer taking into consideration those recommendations.
These are not the only precautions taken by the Mastercard payment system. The company continues to actively provide security consulting services in the field of digital assets.
