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October 5, 2022

Mastercard Launches New Crypto Fraud Prevention Service for Banking Institutions: Report

By Mark Emem

Financial services giant Mastercard is launching a software tool aimed at assisting banks in identifying and preventing fraudulent transactions emanating from crypto exchanges.

According to a new CNBC report, the Crypto Secure software uses artificial intelligence to build a risk profile for crypto exchanges on the financial services giant’s payment network.

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Mastercard’s cyber and intelligence president, Ajay Bhalla, tells CNBC that the financial services giant’s goal in launching the new product is to offer its clients trust when interacting with the crypto asset ecosystem.

“The whole digital asset market is now a pretty large, substantial market. 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.”

Blockchain security firm CipherTrace is behind the Crypto Secure tool, according to the report. MasterCard acquired CipherTrace last year at an undisclosed price. At the time, Bhalla said that the acquisition would help in delivering “more security, transparency and trust to the payments ecosystem.”

Some of CipherTrace’s products include CipherTrace Armada and CipherTrace Inspector.

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CipherTrace Armada helps banks and financial institutions to mitigate crypto asset risk by monitoring payments to and from virtual asset service providers, identifying potentially suspicious activity and reporting the same.

CipherTrace Inspector is a tool used to track transactions on blockchains for the purposes of conducting investigations or due diligence.

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