b-next publishes detailed White Paper on ‘Tackling Cryptocurrency Fraud’

b-next, the specialist provider of capital markets compliance solutions, has issued a new White Paper entitled ‘Tackling Cryptocurrency Fraud’ which explains how automated surveillance systems can monitor blockchains for fraudulent activity.

The blockchain revolution is developing rapidly and garnering significant interest in the financial sector. However, a lack of regulation or standards leaves activity on blockchains exposed to fraud. Cryptocurrencies including Bitcoin run on blockchains and reports of fraud and manipulation have led to the launch of criminal investigations. Such reports have highlighted a need to monitor for market abuse on blockchains.

The task of monitoring blockchains, however, is fraught with complexity. The anonymity inherent in blockchains makes it difficult to trace individuals and identify safe areas. Other vulnerabilities include exposure to market manipulation due to poor understanding of the risks involved in trading cryptocurrencies. In addition, many exchanges used to store Bitcoin have been shown to be highly vulnerable to episodes of hacking and theft.

This is where automated surveillance has a valid role to play. The new White Paper explains how such systems offer an efficient and practical means of monitoring blockchains. This can be achieved in two stages:

*Rating engines can be used to help market participants identify the most reliable entities on blockchains

*Surveillance systems can be combined with rating engines, allowing the monitoring of fraudulent activity on blockchains by generating alerts on trading frequencies, holding periods and ‘Watchlist’/restricted lists

This form of surveillance helps to protect participants from fraud on blockchains, while making transactions on blockchains that much safer.

*The White Paper is available for download at https://www.b-next.com/download/Whitepaper-Blockchain-Surveillance.pdf

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

Related Posts