Blockchain technology could solve our prevalent fraud issue, once and for all.
You might have heard about blockchain’s ability to trace wine, food, even art supply chains. It can easily, and traceably, validate authenticity.
But blockchain has far more ability in the fraud sector than merely detecting fake or fraudulent items in the supply chain, or ensuring transparency in financial exchanges. In fact, it can solve corruption in companies, as well as save them valuable time and money.
The problem
Fraud is everywhere.
In 2019, $25 million has already been lost in Australia alone due to fraud.
Fraud’s widespread nature is largely the result of complex companies and value chains. Companies become too big to track minor details, and supply chains become too convoluted to pinpoint every movement.
That’s where blockchain comes in.
The blockchain solution
Blockchain’s value is simple: it’s permanent, decentralised and traceable. So, data abnormalities can be easily identified.
If data is being falsified or usage of a product is not being correctly recorded, the data abnormality is easily visible and accessible on the blockchain. Our platform STAMP uses blockchain-enabled technology to display your data through a dashboard. You can look at the dashboard, pinpoint the problem, and then follow up the problem within your organisation. In turn, you can spend less time trying to dissect your data.
A myriad of opportunities
Blockchain can fight fraud in ways you might not have considered. For example: identity fraud.
Identity fraud is a complicated, and prevalent, issue. It is intricately tied in with IP rights, which blockchain could also secure. Our personal data isn’t always as secure as we think. In 2017, a massive 16.7 million of the US population had their identities compromised.
Because of blockchain’s transparency, it allows people to secure their identities. If the identity becomes compromised, then there is a way to trace the fraud. This would discourage identity fraud, as well as make it more difficult for fraudsters. Eventually, digital IDs could become a reality, which would allow users more control over their own data.
Fraud detection on the blockchain can extend to:
- Legal documents
- Food/wine/art authenticity certificates
- Corporate corruption
- Supply chain governance
- Financial fraud (with cryptocurrency transactions)
Blockchain being a digital, immutable ledger makes it ideal for fraud prevention and traceability. It’s already being used in supply chains. Now, it can be used to underly company actions and create a solid foundation for data.
To contact us about STAMP, click here.