The cryptomarket still has some risks, so Mastercard decided to take steps to protect its clients.
The system is based on CipherTrace's artificial intelligence algorithms, a company specializing in blockage security, which was absorbed by Mastercard in 2021. The system contains information on "risk profiles" of digital asset sellers, on the basis of which card-producing organizations decide whether to approve transactions or reject them. In other words, if the seller of cryptates was involved in any fraudulent activity, the bank may block the purchase.
The system allocates risk levels to levels from green. Mastercard also compiles financial group ratings and allows card-producing organizations to track approved and rejected transactions, similar instruments already operating in transactions with traditional currencies. Security measures are not directed to end-users, but primarily to their service companies, which in turn can protect clients by rejecting questionable transactions.
In the past year, Mastercard began to integrate crypts into its payment system, allowing retailers to accept payment in digital assets, and by reducing risks, the company protected not only card owners but also its source of income.