Mastercard launches tool to prevent fraud in the crypto industry – BeinCrypto

Illicit transactions at the level of the cryptosphere continue to hinder its adoption. Over the past few years, however, they have declined drastically. The Crypto Secure tool launched by Mastercard aims to further contribute to minimizing the risks of fraudulent transactions in the crypto sphere.

This Tuesday, the online payment services giant revealed to the CNBC newspaper the launch of software to allow banks and other card-issuing institutions to identify and block suspicious transactions from crypto platforms.

Called Crypto Secure, the software uses complex artificial intelligence algorithms that determine the risk of crime associated with trading cryptocurrencies on the Mastercard payment network.

“Crypto Secure has a color-coded dashboard representing the risk of suspicious activity, with risk severity ranging from red for ‘high’ to green for ‘low’.” However, it is up to the card issuer to sanction the crypto platforms from which the illicit transactions originate.

In an exclusive interview with CNBC, Mastercard’s President of Cyber ​​Intelligence, Ajay Bhalla, shared that his company’s goal is to provide a framework to transact with cryptocurrencies without having to worry too much. be done. He thus stated:

“The entire digital asset market is now quite a large and substantial market. The idea is we want to be able to place the same kind of trust in digital asset transactions for consumers, banks and merchants.”

It should be noted that Mastercard already has this type of tool for transactions made with fiat currencies. Crypto Secure is developed by its blockchain security startup CipherTrace.

State of illicit activities in the crypto sphere

According to a report by chain analysis in August on the trend of criminal activity in the crypto universe, the number of illicit transactions decreased by 15% between July 2021 and July 2022. On the other hand; legal transactions were down 36% year-on-year.

The category of “scam” type criminal activity has seen a marked improvement. According to the Chainalysis report, revenue from scam transactions decreased by 65% ​​year-over-year. Darknet market revenue also plunged in the course of 2022. Compared to its July 2021 level, it is down 43%.

It is only at the level of acts of piracy that the year seems set to show poor results. Within 7 months, the hacks have already cost the crypto industry $2.89 billion. DeFi is the main prey of malicious people. The latter have already stolen more than two billion from decentralized finance platforms.

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Mastercard launches tool to prevent fraud in the crypto industry – BeinCrypto


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