Amid growing fraud in the crypto sector, multinational financial services organization Mastercard has unveiled a new feature to prevent and detect cryptocurrency-related fraud operations within its network.
The widespread mainstream adoption of cryptocurrency has pushed global business platforms to include it. But unfortunately, it also opened a path for scammers and cybercriminals to loot people’s hard-earned money in crypto. The value of cryptocurrencies that were moved to the criminals’ wallet addresses it went up to a $14 billin the last year, by Chainalysis.
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The new initiative will manipulate data collected from blockchain and public transaction logs, among other sources, to assess the risk of criminal activity on crypto exchanges linked to the 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 the transactions of crypto exchanges using sophisticated algorithms and cut them off if TRXs are related to an illegal transfer.
A California-based blockchain security startup, CiphersTrace, will operate the new platform to prevent fraudulent crypto operations.
It would provide card issuers and banks with a dashboard that represented color-coded ratings on suspicious activity entered. In addition, Mastercard’s new dashboard will display risk severity from red to green, showing levels of risk from high to low.
The new tool will help Mastercard customers comply with the regulations
The secure tool will pave the way for Mastercard partner companies to meet regulatory requirements amid growing crypto fraud, Ajay Bhalla said. 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 for digital asset transactions for consumers, banks and merchants.
In particular, the American financial organization Mastercard has already been using this type of service 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 as the crypto winter has already shaken the spirits of digital asset enthusiasts and trading volume has dried up. Since peaking in November 2021, the crypto market has wiped out approximately 2 trillion in value. BTC is currently worth around $20,000, then its ATH of $69,000, which represents a 70% decline from last year.
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When asked, Bhalla said the company’s new tool aims to provide “stakeholder solutions for the long term.” Added;
These are market cycles, they’ll come and go, I think you have to take a longer view that this is a big market now and it’s evolving and it’s probably going to be much, much bigger in the future.
Featured image from Pixabay and chart from TradingView.com
