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11 Oct 2022
Mastercard Dives into Crypto with a New Fraud-Combating Tool
As the cryptocurrency market matures, many investors are concerned about the potential for massive fraud and data breaches among cryptocurrency exchanges, which have already been extremely prevalent this year.
Mastercard continues pushing deeper into crypto as it announced its newest product, an online fraud detection tool that makes it easier for merchants to accept payments made with cryptocurrencies in real-time.
The software is designed to help banks identify and cut off transactions from cryptocurrency exchanges and mitigate the threat of fraud.
The name of the technology is Crypto Secure, and the system is designed with sophisticated AI algorithms that evaluate crypto exchange risk by checking what types of cryptocurrency are exchanged for different credit cards and evaluating any potential for crimes that can happen due to such trades.
The service is powered by CipherTrace. A blockchain security startup acquired by Mastercard to help government agencies and businesses investigate cryptocurrency transactions. A growing crime threat in the nascent digital asset market has led Mastercard to launch this service.
Cryptocurrency entering wallets with criminal connections surged to a record $14 billion last year, according to blockchain analytics company Chainalysis. In addition, 2022 has been a year of high-profile hacks and scams that target crypto investors.
A dashboard on the Crypto Secure platform shows banks and other card issuers color-coded ratings representing the risk of suspicious activity, ranging from red for "high" to green for "low."
The concept of compliance has become increasingly important in cryptocurrency lately as more banks and payment companies begin to offer their digital asset storage and trading services. In a move that marks the latest step in Wall Street's embrace of cryptocurrency, Nasdaq launched custody services for institutional investors last month.
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