Mastercard launches new crypto fraud protection tool
The Financial service provider Mastercard's new product allows banks to find and prevent fraud on crypto merchant platforms within its network.
Mastercard launched a new crypto service related to risk management on Oct 3. aimed at crypto secure combines the usage of artificial intelligence blockchain data and public records or crypto transactions along with other sources. to solve crime-related risks of crypto exchange within the Mastercard network.
Ajay Bhalla president of the cyber and intelligence business for Mastercard expressed that development helps its partners stay compliant with local regulations when fighting fraud in the crypto space.
“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.”
Banks as well as other Mastercard issuers that use Crypto secure will see color-coded risk ratings of crypto merchants which represent the risk of suspicious or fraudulent activity connected to the merchant.
While the tool doesn't make judgments for banks it provides another level of advisory on crypto transactions. Mastercard right now has approx 2400 crypto exchanges within the network.
Visa reported over $1 billion in crypto spending last year. while Mastercard has recently created a new crypto payment option in countries like Indonesia and Argentina.
However, as crypto continues to enter the public eye so does any fraud and crime related to the industry.
Furthermore, In Australia in 2022 investors lost $242 million in investment in crypto-related services. while some executives have recently related crypto to a Ponzi scheme others are calling on social media giants to be aware of crypto scams linked to their platforms.