Financial services company Mastercard Inc. has launched Crypto Secure, a technology solution designed to help banks identify fraud-prone crypto exchanges, the company announced in a press release.

See related article: Binance partners Mastercard to launch card in Argentina for bill payment, everyday purchases

Fast facts

• The service uses artificial intelligence algorithms and blockchain data to assess the criminal risk associated with crypto exchanges on the Mastercard payment network.

• A digital dashboard on the platform will display color-coded ratings representing levels of suspicious activity, which users can use when making judgments on which crypto merchants to use.

• Similar technology is used by Mastercard to prevent fraud in traditional finance transactions but has been extended to cryptocurrencies amid increased usage and risk.

• The number of illicit cryptocurrency funds was at a record high of US$14 billion last year, with some forms of cryptocurrency-based crime increasing in 2022, according to data from blockchain analytics firm Chainalysis.

• The new service is supported by CipherTrace, a California-based blockchain security firm acquired by Mastercard last year, which investigates illicit activity on the blockchain.

See related article: Crypto exchange Fasset, Mastercard seek expansion in Indonesia