When it comes to cryptocurrency fraud, Mastercard has introduced a new tool called "Crypto Secure"

Mastercard, a global leader in digital payments, has announced the release of a new program called "Crypto Secure" that will help financial institutions spot and prevent transactions from fraudulent cryptocurrency exchanges.

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As reported by CNBC, to assess the potential for criminal activity in connection with cryptocurrency transactions on the Mastercard payment network, the system reportedly employs advanced artificial intelligence algorithms.

Mastercard bought the blockchain security company CipherTrace a year ago, and it now powers the Crypto Secure service. The California-based firm offers its services to institutions and government agencies investigating suspicious bitcoin transactions.

On the Crypto Secure platform, banks and other card issuers may see a dashboard with risk levels color-coded from red (showing "high" risk) to green (representing "low" risk) to indicate the likelihood of suspicious conduct.

The decision to accept or reject a certain crypto merchant is made independently of Crypto Secure. Ultimately, the decision rests with the card issuers. Mastercard already uses this kind of technology to prevent fraudulent use of fiat currency transactions. Through Crypto Secure, it's bringing this capability to bitcoin and other virtual currencies.

According to Mastercard's head of cyber and intelligence business, Ajay Bhalla, the move is being made to aid the company's partners in remaining in compliance with the ever-evolving regulatory environment. He also stated that the whole digital asset market is now very significant and substantial. To put it another way, they want to be able to give the same level of confidence to digital asset transactions as they do to digital commerce transactions for end users, financial institutions, and commercial enterprises.

Chainalysis, a competitor of CipherTrace, announced last month that the number of cryptocurrency hacks has been growing faster than the number of cryptocurrency frauds over the last year. However, the development of cutting-edge software utilities has made tracking down bitcoin thieves' stolen assets much easier.

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