Mastercard, a global payment company, has launched a security software that will help banks and card issuers identify suspected fraudulent transactions to take decisive actions against them.
The software, Crypto Secure, makes use of artificial intelligence algorithms to identify possible criminal or fraudulent transactions with crypto exchanges on the Mastercard payment network. This security algorithmic protocol makes use of the data provided by the transaction’s blockchain to detect possible fraudulent transactions.
As reported by CBNC, this initiative was motivated by the increasing crime rate in the crypto market. In 2021, the crypto market witnessed a total of $14 billion worth of fraudulent transactions.
How will this work?
Crypto Secure merges insights from technology provided by ChipherTrace, a blockchain security startup Mastercard acquired last year. Crypto Secure will use proprietary information to enable card issuers to remain compliant with the company’s regulatory landscape for digital assets.
To make this possible, Crypto Secure allows banks and card issuers to assess the risk profile of crypto exchanges or crypto merchants, collectively known as Virtual Asset Service Providers (VASPs). This is for them to decide on which purchases of cryptocurrency to approve.
In addition to this, Crypto Secure gives banks and other card issuers a dashboard that detects possible fraudulent transactions. This is depicted through colours ranging from red for “high” and green for “low.” In addition to this colour-themed dashboard, banks and card issuers can identify crypto exchanges and measure the rate at which transactions are approved and declined. They can also determine their exposure to crypto risk through a single score at a portfolio level and access a benchmark rating for comparison to a peer group of financial institutions.
This security feature will only notify the bank or card issuer of suspicious transactions for them to take necessary actions. It does not turn away crypto merchants.
Speaking on the contribution of Mastercard to security in the crypto space, Ajay Bhalla the President of Mastercard Cyber and Intelligence, said:
“At Mastercard trust is our business and with cryptocurrency more intertwined in our daily lives this is an exciting next step in our journey. Crypto Secure will provide card issuers with a platform that allows them access to insights which will improve the safety of crypto purchases, increasing consumer confidence and creating the same trust they expect when paying with Mastercard.”
This novel initiative provides financial institutions with the opportunity to safely manage crypto assets and investments for consumers as the scam rates will reduce. This is another way through which Mastercard continues to support banks, governments and other interested parties through its Crypto & Digital Currencies Consulting Practice.
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