As blockchain technology starts to develop, the number of scammers and hackers is also rising. With that, both blockchain and traditional finance are starting to implement features that will help eliminate such unlawful things. Recently, Mastercard releases a crypto antifraud tool. What is it and how does it work?
Payment giant Mastercard launches Crypto Secure, a new software product designed to assist banks and other card issuers in identifying and blocking suspicious transactions from crypto exchanges.
A similar system already exists for Mastercard’s fiat transactions, and the technology is now being expanded to include Bitcoin and other major cryptocurrencies.
The tool, which is powered by CipherTrace, a crypto company acquired by Mastercard last year, uses artificial intelligence algorithms and data from public blockchains to determine the risk of crime associated with crypto exchanges connected to the payments network.
The platform includes a dashboard with color-coded ratings representing the risk of suspicious activity, with the severity of risk ranging from red for “high” to green for “low.”
However, Crypto Secure does not make decisions on whether a specific crypto merchant should be restricted — card issuers make the final decision.
“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,” Ajay Bhalla, Mastercard’s president of cyber and intelligence business, told CNBC.
According to Bhalla, Crypto Secure will help Mastercard’s partners “stay compliant with the complex regulatory landscape.”
While illicit activity involving cryptocurrency is down 15% in volume so far this year, total scam revenue for 2022 — despite being 65% lower compared to the end of July 2021 — is still a whopping $1.6 billion, according to a recent Chainalysis report.
Moreover, according to the report, as of July 2022, $1.9 billion in cryptocurrency had been stolen in various hacking incidents.
While the decline in illicit crypto activity may be due to the falling prices of Bitcoin and other major cryptocurrencies, Mastercard’s general digital asset strategy has not been affected.
According to Bhalla, the company is “focused on providing long-term solutions to stakeholders.”
“These are market cycles; they come and go,” Bhalla explained to CNBC. “I think you have to take the long view and recognize that this is a large and evolving marketplace that is likely to grow much, much larger in the future.”
As we are always saying, we are advocates of safe and secure crypto space. Hence, we are looking forward to more of this feature as this encourages safe blockchain technology for all. Aside from safety, PrivacySwap also promotes utility and the ability to earn in the blockchain. With that, we aim that all the features we release is an answer an already existing problem in the ecosystem.
For instance, the Privacy in PrivacySwap serves to promote “Security” and “Privacy” in the DeFi Ecosystem. The release of the dual token system is a response to the fast-changing Crypto prices. Our DEX is to provide more utilities to its user. Lastly, the PrivacyCard is to reduce the long and, most often expensive, process of crypto withdrawals.
Nonetheless, everything that we are doing on our platform is to ensure the safety and utility of blockchain technology. We are just halfway through our mission, follow us to join our journey to better crypto space.