BLOCKCHAIN TECHNOLOGY A FRAUD PREVENTION TOOL IN BANKING
13 Jul 2023
Everybody wants protection, and it changes depending on their needs and wants. Users want the protection of their data and information, various industries want their supply process to be smooth with proper security, and when it comes to the banking sector, customer data verification to be secure along with the transaction system. It is very obvious that the banks need more protection than any other industry to perform all the transactions and investments by the companies, people, organizations, SMEs, entrepreneurs, and for the bank itself, using theutmost protection and safeguards.
There are many layers that are hard to maintain and become even more expensive needing money spent on the different layers, but it’s what’s worse is when it still it cannot provide the expected security needed. This is why blockchain is needed to change this situation to provide protection with fewer expenses.
The capable features like decentralization, transparency, security, make the whole system unique and user friendly at the same time. Blockchain has been accepted by many industries, organizations and commercial sectors to give them data safety and transparency on a real-time base.
William Mougayar, the author of “The Blockchain Business” at CoinDesk said - “You have to think of the blockchain as a new utility. It is a new utility network for moving value, moving assets.”
Let’s see how the banking sectors are utilizing this technology to lift up the security system for smooth transactions and data storage.
Blockchain provides a traceable timeline of access to all the information of any updated data including the source, time of update, and the user who updated and how. Every single data change and accounting is transparent to see the changes.
Inside the blockchain, every transaction and data creates a block and connects with another block which is specifically connected with the banks that can access the records and see the changes made by them or any other third party.
The customer data, loan processing records, and proofs, purchasing assets, account details, receipts, and other transactional data are completely secured and stored under the blockchain system and enable the theft shield to terminate the tampering. It allows the data transaction and storage approval without any third party involvement, with only the stakeholders within the system can access and approve the data transaction.
The incorrect or fake data does not get approvaland is rejected by the rest of the system. The whole system remains more secure and anti-fraud proof. It creates a platform for verified and true data. If a change is made a new block is created but you can never remove the old.
today to reveal how blockchain can help your business.