Mastercard Attains CipherTrace to Boost Security and Fraud Detection in the Crypto Ecosystem
Payment giant Mastercard announced the acquisition of CipherTrace, a leading cryptocurrency intelligence company, to offer businesses powerful intelligence about the crypto economy as digital assets continue becoming more intertwined with daily activities.
In a statement, Mastercard revealed the expectation for crypto consumers to have peace of mind about their investments. As a result, the acquisition will help the card issuer offer crypto users significant security and fraud detection apparatus by highlighting the risks and regulatory obligations.
Ajay Bhalla, the president of cyber & intelligence at Mastercard, welcomed the move and said:
“With the rapid growth of the digital asset ecosystem comes the need to ensure it is trusted and safe. Our aim is to build upon the complementary capabilities of Mastercard and CipherTrace to do just this.”
He added that digital assets emerged to be more inclusive and efficient based on their capability to reshape commerce.
Boosting transparency in crypto assets
CipherTrace has carved a niche for itself in the crypto space based on its innovative platform, which boosts fraud monitoring and security for crypto-related programs.
For instance, the intelligence company unveiled a predictive risk-scoring model intended to instantly avert money laundering of cryptocurrencies from ransomware attacks and theft in July 2020.
At the time, Twitter had been hacked, and high-profile figures like Jeff Bezos, Joe Biden, Elon Musk, and Bill Gates were hit by a massive Bitcoin scam.
The acquisition will enable the integration of different technologies like artificial intelligence (AI), blockchain, and cyber security for a safer crypto ecosystem.
Per the announcement: “The deal enables Mastercard to combine the technology, AI and cyber capabilities of both companies to differentiate its card and real-time payments infrastructure, allowing customers and stakeholders globally to build upon and benefit from the solutions to protect their consumers and comply with regulations, as they build their own virtual asset offerings.”
Mastercard continues to stamp its authority in the crypto space. For example, the payment giant launched a crypto program dubbed Start Path to support fast-growing cryptocurrency, digital assets, and blockchain companies in July this year.
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