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Mastercard increases the security level of crypto transactions
One of the disadvantages of the cryptocurrency market, experts emphasize the difficulty of tracking the movement of digital money. Therefore, many companies are developing solutions to improve the security of such transactions. Mastercard, a major payment system, presented its option to prevent cryptocurrency fraud. It created special software that allows banks to quickly identify transactions involving cryptocurrencies that have a high risk of fraud. Thus, financial institutions can block suspicious transactions.
Crypto Secure is based on artificial intelligence technology that analyzes a vast array of data from the blockchain, transaction records available for review, and other information. Mastercard’s product was created thanks to a solution from CipherTrace, a startup that develops products to increase the security of blockchain products. The payment system bought the company in 2021. CipherTrace is based on preventing cryptocurrency transactions that are considered illegal.
Mastercard believes that security issues are becoming more and more important in the digital asset market. Cases of fraud on cryptocurrency exchanges have grown significantly in the past few years, and it is becoming increasingly difficult to combat them because of the difficulty of tracing all stages of a transaction. According to a study by Chainalysis, last year the number of cryptocurrency transactions reached a total of $14 billion, a record high for the sector. In addition, there have been a number of high-profile hacks that have affected some of the world’s largest crypto-investors.
Mastercard is made up of 22,000 financial institutions in 210 countries, providing a streamlined transaction system. Last quarter, the company made $2.5 billion in profits, an excellent sign against the backdrop of the global economic downturn.
Although experts predict a decline in financial activity on the part of consumers, so far Mastercard has not noticed a slowdown. According to representatives of the company, the price increase is beneficial for cardholders, as they take a percentage of the transaction, which is carried out in the dollar equivalent. However, because of inflation, customers will save money and spend less. So far, the situation is fairly stable, and Mastercard continues to increase turnover. The incentive to spend money for consumers is the opening of borders, which were closed during the pandemic. Many people are trying to travel now, which contributes to their spending.
Mastercard pays special attention to improving the security of its customers. The company regularly develops solutions for tracking fraudulent schemes, and the purchase of the CipherTrace startup has improved the approaches. The new Crypto Secure program will help protect transactions in the cryptocurrency market as well.