On October 3, financial services provider Mastercard launched a brand-new crypto risk management service. The platform’s new Crypto Secure service aims to assist banks in detecting and preventing fraud on cryptocurrency merchant platforms.

Crypto Secure combines artificial intelligence, blockchain data, and official records of crypto transactions, among other sources, to assess the criminal risks of cryptocurrency exchanges within the network.

Banks can already use a similar program with fiat currency exchanges provided by Mastercard. Ajay Bhalla, Mastercard's president of cyber and intelligence business, stated that this sustainable development goal its collaborators stay in compliance with local regulations when combating crypto fraud.

Banks and other card issuers who use Crypto Secure will see color-coded risk ratings of cryptocurrency merchants, which portray the risk of dubious or fraudulent activity associated with the said merchant.

CipherTrace, a California-based blockchain security startup acquired by Mastercard the previous year, runs Crypto Secure.

While the tool does not make decisions for banks, it does provide an additional level of advice on cryptocurrency transactions. Mastercard's network currently includes approximately 2,400 cryptocurrency exchanges.

Crypto payments are becoming increasingly common due to centralized payment processors such as Visa and Mastercard. Visa reported over $1 billion in crypto spending last year, and Mastercard has recently launched new crypto payment options in Argentina and Indonesia.

However, as cryptocurrency continues to gain popularity, so does any fraud or crime associated with the industry. According to Chainalysis data, fraudulent wallet addresses received $14 billion in 2021, setting a new all-time high in crypto crime.

In Australia, investors lost $242 million in 2022 due to investment and cryptocurrency-related scams. While some executives have recently linked cryptocurrency to a Ponzi scheme, others warn social media behemoths about crypto scams related to their platforms.

Do you think that other payment processors will adopt a similar tool? Let us know your comments by sharing this article on social media.

Posted 
Oct 4, 2022
 in 
Crypto News
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