Mastercard Debuts Crypto Secure to Further Build Trust in Crypto Trading

On Tuesday, Mastercard unveiled a new piece of software that aids banks in recognizing and blocking transactions from fraudulent cryptocurrency exchanges. The technology, called Crypto Secure, integrates a network of 2,400 exchanges around the world.

The technology assesses the likelihood of criminal activity related to cryptocurrency exchanges on the Mastercard payment network using "sophisticated" artificial intelligence algorithms. The system makes use of information from multiple sources, including the blockchain, a public ledger of cryptocurrency transactions.

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CipherTrace, a blockchain security startup that Mastercard purchased last year, powers the service. CipherTrace, a Menlo Park, California-based company, assists organizations and authorities in looking into unauthorized cryptocurrency transactions. Its primary competitors are the New York-based Chainalysis and the London-based Elliptic.

Ajay Bhalla, president of Mastercard Cyber and Intelligence, says: "Crypto Secure will provide card issuers with a platform that allows them access to insights which will improve the safety of crypto purchases, increasing consumer confidence and creating the same trust they expect when paying with Mastercard."

This feature is being introduced by Mastercard against the backdrop of an increase in criminality in the emerging digital asset market. According to statistics from blockchain analytics company Chainalysis, the amount of cryptocurrency entering wallets with known criminal connections increased to a record $14 billion last year. The year 2022 has also seen a wave of high-profile cyberattacks and con games that target cryptocurrency investors.