Blockchain Could be Used to Fight Cybercrimes
Management consultants Edgar Dunn and Company wonder if the Blockchain technology can fight against cybercrime in financial systems.
Samee Zafar who is the director of the EDC office in London, advised some financial organizations in Europe and North America to be focused on a strategy based on operations and technology. Counting on experience in this field, he published a blog recently about cybercriminals. This explains how, despite that banks employ a set of procedures to validate users and detect irregularities, yet still find flaws in the system.
“Even with all these financial fortifications instead of armies and monitoring movements of money back-office employees, again and again hackers manage to get away with large sums of money.” Zafar said.
He mentions the fact occurred earlier this year in the Bangladesh Bank with the Federal Reserve Bank of New York, $ 81 million dollars stolen from an account. It makes this mention as an example of how cybercriminals have reached higher levels of sophistication. To which he added:
“Theft of Bangladesh was the work of informers criminals who knew his way about the system, avoiding the strongest and objectives of the weakest links in the network of international payments defenses.” “A system of fraud prevention based on an approach ledger with multiple distributed databases that work in sync can be deployed to combat fraudulent incidents like this very effectively. “
Today it has grown the need to create new risk control systems in order to combat the instability of these. Distributed accounting system would benefit not only large banks but also small and could get rid of the core network broker called SWIFT.
Banks are becoming interested in the hybrid systems they are those in which a single authority dealing with records in the center and at the same time stimulates and maintains an accounting system distributed in which security is preserved, this according to Zafar.
He adds: “Such a system could work on several levels – global, regional, and local or domestic, to enable centralised authorities in multiple jurisdictions to develop an additional layer of shared decentralised systems.”
Finally he noted that while an accounting distributed system would take time and a large budget to build it, is not a safety mechanism against cyber attacks, but is a much better alternative when trying to identify transactions for fraud and laundering money quickly.
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