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The Almighty Buck

Mastercard Introduces New Tool Helping Banks Block Fraud-Prone Crypto Exchanges (yahoo.com) 20

"Mastercard has launched software that allows banks to identify and potentially block customer purchases from cryptocurrency exchanges that have been linked to fraud..." reports Barron's: "Crypto Secure" allows card issuers to assess the regulatory risk of dealing with crypto exchanges and other digital asset platforms, as well as decide which purchases to approve, Mastercard said. The solution, which taps blockchain data, allows banks to see where cardholders are buying crypto and assess their overall exposure to the digital asset space, which is rife with fraud and under continuing scrutiny from regulators.
A report on Yahoo Finance says the solutions will "infuse added security and reliability into crypto purchases made across a worldwide network of 2,400 exchanges," noting that the initiative "reinforces Mastercard's efforts to bolster its presence in the growing crypto ecosystem." Mastercard's president of cyber and intelligence business told CNBC that "The idea is that the kind of trust we provide for digital commerce transactions, we want to be able to provide the same kind of trust to digital asset transactions for consumers, banks and merchants." The Mastercard executive "declined to disclose the overall dollar value of fiat-to-crypto volumes from its network of 2,400 crypto exchanges," but did say the number of transactions per minute now runs into the "thousands."

And when CNBC asked if Mastercard was changing its strategy after a recent drop in crypto prices, he retorted that market cycles always come and go. "I think you've got to take the longer view that this is a big marketplace now and evolving and is probably going to be much, much bigger in the future."
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Mastercard Introduces New Tool Helping Banks Block Fraud-Prone Crypto Exchanges

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  • by algaeman ( 600564 ) on Saturday October 08, 2022 @02:43PM (#62949623)
    transaction at crypto exchange -> fraud alert
  • by rsilvergun ( 571051 ) on Saturday October 08, 2022 @02:46PM (#62949629)
    And 20K what's the break-even point a year ago. Ethereum did their switch to proof of stake and it's about to bring down the hammer of the SEC on them because they can't even pretend to be a commodity anymore.

    The price of crypto may have stabilized at a fixed number but it's not going up with inflation and is gradually being eaten alive. Coupled with increased regulatory scrutiny on the Ponzi schemes and money laundering and the legalization of drugs and crypto is not long for this world.

    If you're in now is the time to cut your losses
    • by ET3D ( 1169851 )

      Why would Ethereum's switch would matter? The Responsible Financial Innovation Act should regulate crypto no matter if it's PoW or PoS.

      The crypto bubble has hopefully started to burst, but perhaps that's what would let it settle down as an ongoing useful technology. In particular Ethereum, which, unlike Bitcoin, is actually useful.

      • I don't think that act is going to go anywhere. If it's the one I'm thinking of it's the one where the crypto Bros tried to buy off a couple of senators and while they succeeded in buying off two senators they didn't have enough money to buy off enough of them to get their sweetheart bill passed.

        And they bought off gillibrand. She's hands down the cheapest senator to buy. I'm pretty sure you could buy her for a box of cracker jacks even if you'd already taken the toy out.

        Mind you it's not that it tak
      • Ethereum is only useful for the same thing Bitcoin is which is laundering money. It's even less useful for that because it has a central authority that controls it equivalent to the Federal reserve and it's a private company with little or no oversight that can take the money and run anytime they feel it's worth it. Also the new shift to proof of stake essentially makes the whole thing a giant Ponzi scheme where you need people constantly buying in to create more crypto. Even more so than it was when it was
  • Which we all know is never used for anything illegal.. The irony that we see so much "digital currencies == fraud and crime" while also being readied for CDBCs from banks that have a history of enabling gangs and terrorist groups, is not lost on me.
    • by splutty ( 43475 )

      Cash: 0.1% used for crimes.
      Crypto: 99.9% used for crimes.

      (Obviously somewhat hyperbolic, the cash number is far far lower and the Crypto number probably is a little bit lower)

  • Already the conversation is turning to 'crypto is bad'. Some geniuses at Slashdot apparently just discovered that and want to tell the world. Will anyone notice that MC is part of this story?

    I have a MasterCard. It came with a lot of legal mumbo jumbo, but I'm pretty sure that a cash advance is expensive. They are happy for me to give money to retailers, but not to myself. I'm curious whether buying crypto funny money will have the same cost. Very profitable for MC and even moreso when the cardholder starts

    • Glad I'm not the only one that found the cash costs weird/wrong. Though I'm guessing it's to make fraud harder. This way you have to sell the goods, or have a partner with a business that you fake the purchases through. Rather than withdraw all cash possible, then go bankrupt, then spend said cash for a while.

    • by bws111 ( 1216812 )

      Mastercard doesn't set the rates, and doesn't collect the interest. The issuing bank does.

    • They collect a significant part of the transaction from the retailer, between 1% and 4% depending on the card and the vendor and the details of the transaction. Why are you surprised they wish to collect a share of your cash transactions?

  • To make it like... a feature. Rather than "I don't like what they're doing, so cut off their money".

  • They can warn the customer and ask for confirmation, but that is it. Adults are allowed to make stupid investments, and, as banks well know, that is the standard case.

  • I trust fiat even if it runs on $ 31 Trillion Debt which will keep increasing every year and never needs to be repaid as some subsequent generations will pay for it which is totally not a ponzi because we have the Govt backing it. And stellar people like Trump & Biden heading said Govt.

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