Payments Giant Mastercard launches crypto-fraud tool for card issuers

Payments giant MasterCard today launched Crypto Secure, a new software product designed to help banks and other card issuers identify and block suspicious transactions from cryptocurrency exchanges. CNBC a report.

A similar system already exists for mandatory MasterCard transactions, with technology expanding now Bitcoin and other major cryptocurrencies.

Backed by CipherTrace, the leading crypto company Mastercard acquired last year, the tool uses “sophisticated” artificial intelligence algorithms and data from public block chains to identify crime risks associated with crypto exchanges connected to the payment network.

The platform provides a dashboard of color-coded ratings representing the risk of suspicious activity, with the severity of the risk ranging from red to “high” to green to “low,” according to the report.

However, Crypto Secure itself does not make a decision on whether a particular crypto dealer should be restricted – the final judgment is up to the card issuers.

“The idea is that the kind of trust we give to digital commerce transactions, we want to be able to provide the same kind of trust for digital asset transactions to consumers, banks and merchants,” MasterCard CEO of Cyber ​​and Intelligence Ajay Bhalla told CNBC.

According to Bhalla, Crypto Secure will ensure that Mastercard partners can “stay committed to the complex regulatory landscape.”

Mastercard looks at the bigger picture

Although illegal activity involving cryptocurrency is down 15% in volume so far this year, total fraud revenue for 2022 – although down 65% compared to the end of July 2021 – is still at 1.6 billion, according to a recent report by Chain Analytics.

In addition, as of July 2022, $1.9 billion in cryptocurrency remains stolen in numerous hacking incidents, according to the report.

While the decline in illicit crypto activity may be due to the decline in the prices of Bitcoin and other major cryptocurrencies, the current bear market has not affected Mastercard’s overall digital asset strategy.

According to Bhalla, the company is “focused on providing solutions to long-term stakeholders”.

“These are market cycles, come and go,” Bhalla said. CNBC. “I think you have to look further that this is a big market now and that it is developing and maybe it will be a lot bigger in the future.”

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