Financial services provider Mastercard launched a new cryptocurrency service related to fraud on October 3, called Crypto Secure. The new service combines the use of artificial intelligence, blockchain data, and public records of cryptocurrency transactions, along with other sources, to help banks detect and prevent crime-related risks on cryptocurrency platforms.
The firm already provides a similar service for fiat transactions.
Mastercard’s President of Cyber and Intelligence Business, Ajay Bhalla, said this development helps their partners comply with national regulations when it comes to preventing crime in the crypto space:
“The idea is that the kind of trust we provide for digital commerce transactions, we want to be able to provide the same kind of trust to digital asset transactions for consumers, banks and merchants.”
Banks and other Mastercard issuers using Crypto Secure will see a color-coded risk rating of crypto platforms, representing the risk of suspicious or fraudulent activity connected to said merchants.
Crypto Secure is run by CipherTrace, a California-based blockchain security startup that was acquired by Mastercard last year.
While the tool does not make decisions on behalf of banks, it does provide a different level of recommendation on cryptocurrency transactions. Mastercard currently has around 2,400 crypto exchanges in its ecosystem.
Cryptocurrency payments are becoming more popular thanks to centralized payment companies like Visa and Mastercard. Last year, Visa reported over $1 billion in crypto transactions, while Mastercard recently created new crypto payment options features in countries like Argentina and Indonesia.
However, as cryptocurrencies continue to widen mainstream, so do the scams. According to Chainalysis data, in 2021, the number of crypto-related crimes marked a new all-time high, with scam wallet addresses receiving $14 billion.
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