Fraud is a growing problem in any business, in fact, it is labeled as one of the top operational risks of 2017. However, this could be diminished by a new technology called Blockchain. Blockchain is resistant to tampering, allowing verified users to view, store, and share their information in a high security environment. This helps to foster trust, transparency, and accountability in any business relationship. Many companies, especially when it comes to finance, are exploring ways to use this technology to help prevent fraud.
For instance, in terms of finance, using Blockchain is reduce the time and steps in a transaction process. Because of this, it becomes less likely for a fraudster to game the system and run off with money. Many people, including Constantin von Altrock, Director of Counter Fraud Management at IBM, are trying to find ways to implement this fraud protection when it comes to bank to bank transactions.
Another thing that Blockchain can help with is preventing identity theft. Identity Theft has costs consumers over 16 billion dollars in 2016 alone, making it a serious issue that millions of people deal with daily. In a survey of banks, only about 16% claimed that they can detect a fraudulent transaction.
This is why Blockchain is so important, as it can secure your information in a way that makes it unable to be tampered with or used in a way without your permission. They do this by managing the information that is able to be shared on their framework. This way, organizations and businesses can validate a customers identity, even if they only have access to some of their information, making it much harder for people to abuse the system.
Fraud is an ongoing issue all around the world, but it does not have to be. With Blockchain, the issues surrounding fraud can be litigated, and prevented before they become an issue.
Burgemeester van Duyvendijklaan 25
2262 BR Leidschendam
+31 (0)70 359 6829