Mastercard Inc (NYSE:MA) has launched a new cryptocurrency service related to risk management, with the aim of facilitating the process of finding and preventing fraud on crypto merchant platforms for banks.
Crypto Secure combines artificial intelligence, blockchain data and public records of transactions to establish crime-related risks of each exchange within the electronic payment processor’s network.
It currently has approximately 2,400 different crypto exchanges within its large network.
Mastercard already has a virtually identical service with fiat currency transactions, which is also available to lenders.
“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,” commented Ajay Bhalla, Mastercard president of cyber and intelligence business.
Banks and other card issuers that use the new service will see colour-coded risk ratings of crypto merchants, showing the chance of fraudulent or suspicious activity.
Mastercard has been increasing its crypto payment offerings as digital assets continue to enter the public eye, while its largest rival Visa (NYSE:V) reported more than US$1bn in crypto spending last year.
Crypto-related fraud is also on the rise though, according to Chainanalysis data, which showed that 2021 experienced the most digital asset-related crimes of any year, with fraudulent addresses receiving roughly US$14bn.