Mastercard Launchs Software For Financial Crime Opposite

JAKARTA The leading global payment company that connects millions of consumers and thousands of financial institutions, Mastercard, announced the launch of a fund that could help banks to tackle financial fraud.

Mastercard hopes the device can assist banks in identifying and blocking fraud transactions from exchanges, according to the company's statement.

Launching DailyCoin, the software uses artificial intelligence (AI) based on CryptoSecure blockchain data in detecting fraud and determining the level of crime risk associated with the cryptocurrency platform, through the Mastercard payment network.

The company responsible for providing this service is CipherTrace, an American blockchain security company that was acquired by Mastercard last year. CipherTrace will compete with Chainalysis and Elliptic in the blockchain security sector.

Some of the services provided by this California-based startup are crypto risk advisers, fraud detection, and due diligence. CipherTrace's main clients are companies in the financial sector and government agencies. The company helps them investigate illicit transactions related to cryptocurrencies.

Rising Financial Crimes in the World of Maya

Financial crimes committed on the internet experienced significant growth. The theft, fraud, and money laundering through cryptocurrencies and other digital assets grew exponentially. Based on Chainalysis data, cryptocurrency-related criminal activity alone has reached 14 billion US dollars (equivalent to IDR 212.6 trillion).

A report from a security firm showed that in the first seven months of 2022, hacking (exploits) to cryptocurrency platforms reached 1.9 billion US dollars (approximately IDR 28.9 trillion) and crypto investor scams reached 1.6 billion US dollars (approximately IDR 24.3 trillion). These figures may increase by the end of the year.

The Crypto Secure service provides a dashboard for banks and card publishers that graphically display suspicious activity risks. Risk classification starts from the highest (red) to the lowest (green) level.

However, the decision on whether to reject certain user operations on the network or not entirely depends on the client's decision (bank or card publisher) and not on Crypto Secure, which limits itself to exposing risks.

"The idea is that the kind of trust we give for digital trade transactions, we want to be able to provide the same type of trust for digital asset transactions for consumers, banks, and traders," said the president of cyber affairs and Mastercard Intelligence, Ajay Bhallah.