Financial services provider Mastercard launched a new cryptocurrency service related to risk management on Oct. 3. Mastercard’s new service, Crypto Secure, aims to help banks find and prevent fraud on crypto trading platforms.
Crypto Secure combines the use of artificial intelligence, blockchain data, and public records of cryptocurrency transactions, along with other sources, to determine the crime-related risks of crypto exchanges within the Mastercard network.
Mastercard already has a similar service with fiat money transactions available to banks.
Mastercard’s president of cyber and business intelligence, Ajay Bhalla, said that this development helps its partners comply with local regulations when fighting fraud in the cryptocurrency space:
“We want to be able to provide the kind of trust that we provide to digital commerce transactions to digital asset transactions for consumers, banks and merchants.”
Banks and other Mastercard card issuers using Crypto Secure will see color-coded risk ratings from crypto traderswhich represent the risk of suspicious or fraudulent activity related to said merchant.
Crypto Secure is run by CipherTrace, a California-based startup for blockchain security. which was acquired by Mastercard the previous year.
Although the tool does not make judgment calls to send the information to banks, it does provide another level of advice on cryptocurrency transactions. Mastercard currently has around 2,400 crypto exchanges within its network.
Cryptocurrency payments are becoming more widespread thanks to centralized payments such as Visa and Mastercard. Last year, Visa reported more than $1 billion in crypto spending, and Mastercard has recently created new crypto payment options in countries like Argentina and Indonesia.
Nevertheless, As cryptocurrencies continue to enter the public eye, so too do frauds and crimes related to the industry.. According to data from Chainalysis, 2021 marked a new all-time high in cryptocurrency crime; Fraudulent wallet addresses are recorded to have received $14 billion.
In Australia in 2022, investors lost $242 million to crypto-related investments and scams. While some executives have recently linked crypto to scams, others are calling on social media giants to be aware of crypto scams tied to their platforms.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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