Mastercard’s new product called Crypto Secure helps banks and other financial institutions to assess the level of crime being involved into the crypto merchant platforms on its network.
Against the backdrop of the high-profile attacks being widespread in the crypto space, the financial service provider Mastercard launched a piece of software on October 3, 2022 aimed to trace illicit transactions and keep the crypto platforms fraud-free.
Artificial intelligence, blockchain data and public records of crypto transactions the system uses make up a perfect combination to define the risk of crime on the Mastercard payment network.
Mastercard has already got an identical solution for fiat currency available to banking systems.
The president of cyber and intelligence business for Mastercard, Ajay Bhalla said that this product has come into play to help comply with the local regulation when it comes to fighting with malicious cyber activity on crypto exchanges.
On the Crypto Secure, banks and other card issuers will see a board with color-coded ratings of crypto merchants showing their risk of fraudulent behavior where red stands for “high” whereas green for “low”.
The system is powered by CipherTrace, a startup that was acquired by Mastercard last year.
Crypto Secure doesn’t make a judgment call on whether to eliminate a particular merchant or not, instead it is used as an advisory tool. Mastercard has about 2,400 crypto exchanges within its network.
A surge of crypto payments is caused by the emergence of centralized payment processors as Visa and Mastercard. Visa has reported to spend $1 billion for crypto services while Mastercard has produced crypto payment methods in such countries as Indonesia and Argentina.
Crypto payments are widely spread, so does crime in the industry. All-time record level of cyber attacks took place in 2021 with fraudulent wallets getting $14 billion, according to Chainalysis.
Investors lost $242 million in crypto scams in Australia. Some executives have reported that crypto is related to a Ponzi scheme, and some call on to pay attention that the majority of crypto scams originate from social media.