October has recorded one of the biggest crypto loss due to hacking with a resounding $718 million from decentralized finance (DeFi) protocols. Individuals are also losing millions due to scammers throughout the years and MasterCard is rolling out a program called 'Crypto Secure' in the hopes of combating these scams.
What is Crypto Secure?
MasterCard aims to provide easy and safe crypto investment experience for its users, hence the need for Crypto Secure. Crypto Secure is an innovative software that is designed to increase security by flagging suspicious transactions on crypto exchanges. Banks and other MasterCard provides will be notified when shady transactions take place when using this software, so that they will be able to block them before any loss occurs.
After acquiring CipherTrace last year, MasterCard used CipherTrance's technology in combination with AI and data form crypto exchanges to create Crypto Secure. The combination of these three helped the software address the complex nature of crypto investments and differentiate fraudulent transaction from legit ones.
How does Crypto Secure Work?
Crypto Secure uses a color-coded dashboard to alert banks and MasterCard issuers with transaction that are taking place on exchanges. As the color Red is used to represent highly risky transactions, Green is used to indicate low risk transactions.
It is worth mentioning, even though Crypto Secure can flag risky transaction, only the bank or the card issuer has the power to block the transaction. This will eliminate any risk of transactions not going through due to Crypto Secure errors or flags caused by false risky transactions.
The President of MasterCard Cyber and Intelligence, Ajay Bhalla further stated
At MasterCard trust is our business and with cryptocurrency more intertwined in our daily lives this is an exciting next step in our journey. 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.
Final Thoughts
Compared to last year, scams involving crypto have shown some slowing down but there are still people losing there hard earn assets, so it is great to see big companies like MasterCard try to prevent these illicit acts. Even though it is too early to see the effectiveness of Crypto Secure, this project should motivate other companies and entrepreneurs to produce security systems that can tackle the huge losses we are facing due to hacks and scams.
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Disclaimer
I am not a financial advisor. The information found here are for educational purposes and cite my personal opinion.
