7 October 2022
Mastercard introduces a new piece of software to help banks in identifying and cutting off transactions from fraud-prone crypto exchanges.
The new tool is named Crypto Secure. It uses “sophisticated” artificial intelligence algorithms to determine the risk of crime associated with crypto exchanges on the Mastercard payment network. It relies on data from the blockchain, a public record of crypto transactions, as well as other sources.
Mastercard has decided to launch the service against a backdrop of growing crime in the nascent digital asset market. According to Chainalysis data, the amount of crypto entering wallets with known criminal connections surged to a record $14 billion last year. While 2022 has seen a spate of high-profile hacks and scams targeting crypto investors.
Crypto Secure will display a dashboard for banks and other card issuers with color-coded ratings representing the risk of suspicious activity, with the severity of risk ranging from red for “high” to green for “low.”
Mastercard was already using similar technology to prevent fraud in fiat currency transactions. With Crypto Secure, it’s expanding such functionality to bitcoin and other virtual currencies.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice