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Blockchain: The Game Changer in Tackling Fraud
No matter how stringent an organization’s employee vetting process is, it is impossible to filter out every dishonest worker. Circumstances can mould an employee to start cutting corners and there is very little that can be done to entirely prevent this. Statistics show that it takes up to 18 months to detect internal frauds. Bearing this in mind organizations cannot afford to think of catching these kinds of employees after the fact; rather they have to proactively mitigate the possibility of such occurrences.
Blockchain, the brain child of Satoshi Nakamoto, was originally created to be the gear behind the popular cryptocurrency Bitcoin. Nonetheless with this highly innovative technology, people are finding innumerous possibilities of applying it in varied fields. With the decentralized nature of blockchain networks, organizations are offered a truly transparent and incorruptible way of storing data. A major application of this is in the supply chain system. By encoding every business invoice and transaction into blockchain, companies can prevent the misappropriation of funds and unauthorized changes in data. This will give companies a secure way of tracking all business procurements and also protect crucial information such as contracts and supplier information.
Everledger, a UK based startup, is spearheading blockchain innovation with inventive ideas and strategy. By creating a digital ledger that cross references the certifications and ownership details of diamonds, they are effectively tackling fraud in diamond trade. Beyond diamonds, they plan to use blockchain to assure the authenticity of goods such as fine art, aged wine and other luxury items. In another case, IBM and Maersk Line have collaborated to create a blockchain solution that improves cross border supply chain. Having already validated this technology with multiple pilot runs, they hope to revolutionize the supply chain industry by saving costs and reducing frauds. Undoubtedly, blockchain is set out to be the next game changer from the tech perspective, in the business world.