Mastercard, the global pioneer in payment technology, is introducing Crypto Secure, a new tool for detecting and preventing crypto fraud. According to CNBC, the global pioneer plans to launch this new piece of software on Tuesday. This tool will aid banks in detecting and stopping transactions from crypto exchanges that might’ve been exposed to fraud. According to Mastercard, this software uses artificial intelligence algorithms to determine the nature of the said transaction.
Crypto Secure had a long time coming. Cryptocurrencies are constantly used to launder money, execute illegal transactions, and conduct other criminal activities. Moreover, money laundering through cryptocurrency was always something that banks were afraid of. The technology that certain cryptocurrencies use makes it nearly impossible to detect such fraudulent activity. Now that Crypto Secure made its debut, things might take a turn and change for good. This software uses information from a public ledger, the blockchain, and several other sources.
CipherTrace powers the backend of this software – a startup focused on blockchain security. Last year, Mastercard got a hold of this startup, and now they are using it. Since its first days in this industry, CipherTrace has been helping different government agencies and corporations detect illegal cryptocurrency transactions. Simmlar firms include Chainalysis and Elliptic.
Mastercard is continuously fighting the ever-growing crime rates in the crypto market. According to Chainalysis, more than $14 billion worth of crypto was used for criminal activity just last year. Unlike last year, the year 2022 was full of hacks and breaches. During this year, we have witnessed hundreds of high-profile hacks that were then used to promote different types of scams in the market. Such occurrences make the market less credible and push new investors away.
How Will Crypto Secure Work?
The Crypto Secure platform will have several notable features, making it a groundbreaking innovation. The banks and other institutions that issue cards will have access to a dashboard where they can find information about certain crypto exchanges. Furthermore, this dashboard will provide color-graded ratings representing the suspicious activity around certain exchanges. Naturally, green indicates “low” risk, while red indicates “high” risk.
Of course, Crypto Secure will only help its users decide on whether they should allow certain transactions to happen. Therefore, this software is not in charge of deciding whether an exchange or a certain transaction is illegal. The banks will still be the ones calling all the shots.
“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.” – Ajah Bhalla