Mastercard Plans To Launch Anti-Crypto Fraud Tool

CNBC reported today that Mastercard intends to launch a new software solution to aid banks and card issuers in combatting crypto-related fraud.

The new program, dubbed Crypto Secure, uses artificial intelligence algorithms to analyze crypto exchange-related risk on Mastercard’s network, with a reliance on on-chain data provided by Mastercard-acquired blockchain-security firm CipherTrace.

Crypto Secure provides a dashboard to banks and card issuers that seek to clearly describe whether or not a crypto-related behavior is suspicious, and to what extent. Notably, the system does not respond; only the card issuer may interfere.

Banks and other card issuers have presented a dashboard with color-coded ratings showing the danger of suspicious behavior on the Crypto Secure platform, with the severity of risk ranging from red for high to green for low.

Crypto Secure does not make a decision on whether to reject a certain crypto merchant. It is up to the card companies to make that decision.

Mastercard currently employs comparable technologies to combat fraud in fiat money transactions. Crypto Secure’s functionality is being extended to Bitcoin and other cryptocurrencies.

Mastercard is introducing the service in the midst of rising criminality in the fledgling digital asset market. According to statistics from blockchain analytics firm Chainalysis, the amount of cryptocurrency entering wallets with known criminal ties reached a record $14 billion last year. And 2022 has seen a slew of high-profile thefts and frauds aimed at cryptocurrency investors.

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