Amid the growing frauds in the crypto sector, the multinational financial service organization, Mastercard, has unveiled a new feature to prevent and detect crypto-related fraud operations within its network.
Cryptocurrency’s broad adoption by the mainstream has pushed global business platforms to include it. But unfortunately, it also opened a way for fraudsters and cybercriminals to loot people’s hard-earned money in crypto. The worth of cryptocurrencies that moved to criminals’ wallet addresses spiked to a whopping $14 billion in the last year, per Chainalysis.
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The new initiative will manipulate data gathered from blockchain and public transaction records, among other sources, to assess the risk of criminal activity on crypto exchanges linked with Mastercard Network. Currently, around 2,400 exchanges have partnered with the giant financial firm.
The new crypto fraud protocol, Crypto Secure, will find the risk in crypto exchanges’ transactions using sophisticated algorithms and cut them off if TRXs relate to an illegal transfer.
A California-based blockchain security startup, CiphersTrace, will operate the new platform to prevent fraudulent crypto operations.
It’d provide card issuers and banks with a dashboard representing color-coded ratings regarding the suspicious activity entered. In addition, the new panel on the Mastercard will show the severity of risk from red to green, showing high to low levels of risk.
New Tool Will Help Mastercard’s Clients Comply With Regulations
The Secure Tool will set the way for Mastercard’s partner companies to meet the regulatory requirement amidst the growing frauds in crypto, said Ajay Bhalla. He is president of intelligence and cyber at Mastercard. Ajay added;
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.
Notably, the American financial organization Mastercard has already been utilizing such types of services for fiat money. And now, it has expanded its security system for the sake of Bitcoin and other virtual currencies.
Mastercard comes to this move when crypto winter has already shaken the spirit of digital asset enthusiasts, and trading volume has dried. Since the peak rally of November 2021, the crypto market has roughly wiped out 2 trillion in value. BTC is currently worth around $20,000, then its ATH of $69,000, representing a 70% decrease from last year.
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When asked about it from Bhalla, he said the company’s new tool aims to provide “solutions to the stakeholders for the long term.” He added;
These are market cycles, they will come, and they will go, I think you’ve got to take the longer view that this is a big marketplace now and evolving and is probably going to be much, much bigger in the future.
Featured image from Pixabay and chart from TradingView.com
