Mastercard is improving its digital risk assessment by introducing anti-fraud software to combat crypto scams and other related cases.
The company announced on Tuesday, Oct. 4 that Crypto Secure will be the latest AI-powered tool that will operate within the payment network.
The system will make use of blockchain data and anything in between for every crypto transaction.
Mastercard Unveils Crypto Tool For Fraud
According to a report by CNBC, the New York-based financial corporation has introduced new software to mitigate the risk of fraud when it comes to bank and crypto transactions.
Using artificial intelligence, Mastercard can now run a risk assessment for the crypto exchanges that are happening within its own system.
Mastercard was able to launch Crypto Secure thanks to its newly-acquired startup last year: CipherTrace. This company is centered on blockchain security, making it a suitable partner to lessen crypto-related attacks on the network.
CipherTrace Develops Crypto Secure
CipherTrace goes after businesses focused on digital transactions which are mainly banks and other financial institutions. It provides critical visibility for potential anomalies in crypto firms and runs comprehensive analyses for security and compliance risks.
With the increasing trend in crypto-related crimes, Mastercard is ramping up its effort to safeguard its clients and other firms from unwanted hacks and scams.
With the debut of Crypto Secure, card issuers and banks will be able to see the risk of a particular activity that they think is suspicious. The color of the risk on the dashboard varies in severity. from low (green) to high (red).
Previously, Mastercard made use of a similar technology limited to protecting just the fiat currency transactions. This time, the company wants to focus on safeguarding the crypto assets amid the unpredictable crypto scams.
"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," Mastercard's president of cyber and intelligence business Ajay Bhalla said.
Related Article: Mastercard Acquires CipherTrace | Company Plans Opening Network To More Selected Cryptocurrencies
Crypto Regulation in the US
US President Joe Biden has issued a framework that regulates crypto assets all over the place. It's the first time in history that the White House released that in the homeland.
At the time, the crypto market remained bearish. It was evident in the value of the world's most popular cryptocurrency in the world. Bitcoin's price hit under $20,000 from its $69,00 all-time high record.
Over the past weeks, the crypto investors are hoping for some improvement for BTC yet it seems that it's a no-show for them.
The decrease in the prices of cryptocurrencies is not an exemption for attackers to pause their operations. as such, the industry has been struggling to fight hackers despite stricter policies and regulations.
Since early 2022, there's an estimated amount of $1.4 billion that's been lost because of the rampant scams globally, Chainalysis wrote.
Meanwhile, The Fintech Times reported that Inswitch partners with Mastercard to bring digital asset support programs to Latin America.
This article is owned by Tech Times
Written by Joseph Henry
