DeepAI
Log In Sign Up

A blockchain-based Forensic Model for Financial Crime Investigation: The Embezzlement Scenario

08/18/2020
by   Lamprini Zarpala, et al.
0

The financial crime landscape is evolving along with the digitization in financial services. In this context, laws and regulations cannot efficiently cope with a fast-moving industry such as finance, which translates in late adoption of measures and legal voids, providing a fruitful landscape for malicious actors. In parallel, blockchain technology and its promising features such as immutability, verifiability, and authentication, enhance the opportunities of financial forensics. In this paper, we focus on an embezzlement scheme and we provide a forensic-by-design methodology for its investigation. In addition, the feasibility and adaptability of our approach can be extended and embrace digital investigations on other types of schemes. We provide a functional implementation based on smart contracts and we integrate standardised forensic flows and chain of custody preservation mechanisms. Finally, we discuss the benefits and challenges of the symbiotic relationship between blockchain and financial investigations, along with future research directions.

READ FULL TEXT

page 10

page 14

02/17/2020

The Minimum Hybrid Contract (MHC): Combining legal and blockchain smart contracts

Corruption is a major global financial problem with billions of dollars ...
03/05/2019

Katallassos: A standard framework for finance

Katallassos is a new blockchain that provides a standard way to build an...
03/02/2021

Graph Computing for Financial Crime and Fraud Detection: Trends, Challenges and Outlook

The rise of digital payments has caused consequential changes in the fin...
03/02/2021

Financial Crime Fraud Detection Using Graph Computing: Application Considerations Outlook

In recent years, the unprecedented growth in digital payments fueled con...
11/02/2022

SoK: A Stratified Approach to Blockchain Decentralization

Decentralization has been touted as the principal security advantage whi...