Blockchain Technology Beneficial To MasterCard’s Safety Net
MasterCard, one of the world’s leading credit card issuers, is stepping up their game to protect banks and payment processors against cyber hacking. Over the past few years, credit card theft through online hacks has increased, leading to increased numbers of fraud reports and identity theft. Safety Net is MasterCard’s answers to this threat, and this global tool has now launched in Europe.
MasterCard’s Safety Net – A Step In The Right Direction
Protecting consumer data is a key hurdle to tackle for credit card companies. The major problem with this form of payment is how it was never intended to be used on the Internet to begin with, forcing companies to play catch-up at every turn. Recent waves of cyber attacks against banks and card payment processors are a call for more drastic solutions, and MasterCard aims to provide exactly that.
Their new Safety Net defensive system acts as an external layer of security, complementing existing security measures implemented by banks and online payment processors. Through the usage of sophisticated algorithms, combined with monitoring different geographies and channels for optimal support services, MasterCard’s Safety Net offers protection without further disruption.
This gives MasterCard a global view of all payment transactions, which will help identify potential fraud attempts in real-time. Nipping these potential threats in the bud is key to preventing fraud, which can have dire consequences for MasterCard, the defrauded company, and the credit card owner. Authorization controls to block specific payments is one element that will be made available to customers.
Mastercard’s Enterprise Security Solutions President Ajay Bhalla stated:
“Safety Net is the latest in a strong lineup of network-level defenses available to issuers in their fight against major cyber attacks. With Safety Net, we are screening billions of transactions twenty-four hours a day, seven days a week, protecting our issuers against events like cash out attacks and misuse of payment accounts.”
In what may be seen as a controversial move, MasterCard plans to enroll issuers automatically, giving them the latest security tools without having to take any action. Safety Net is designed to cover MasterCard, Maestro and Cirrus transactions all over the world. Whether or not this new tool will prove to be a success in terms of regarding credit card fraud, remains to be seen.
Adopting Blockchain Technology To Monitor Transactions
MasterCard is a global player in the credit card ecosystem, and monitoring transactions around the world can be very demanding when using traditional software solutions. If the goal of Safety net truly is to monitor all transactions around the world in real-time, a blockchain-based solution is a favorable tool for this type of activity.
Blockchain technology operates in a decentralized manner, by using computers all over the world, rather than in one server park. Doing so removes any central point of failure from the equation, and ensures a stable system at any given time. MasterCard is not keen on Bitcoin or digital currencies – for now, but the underlying blockchain technology could be of great value to them.
What are your thoughts on MasterCard’s Safety Net? Do you think it will help combat fraud, or will hackers find new ways to breach banks and processors? Let us know in the comments below!
Source: MasterCard Newsroom
Images courtesy of MasterCard, Safety Net, Shutterstock