Fraud protection: Finterra Blockchain Technology

The impact of fraud has been a major contributor for various individuals as well as organisations across the globe. While financial fraud is of paramount importance, other manners of fraud are also very problematic and results in devastating consequences. In 2018, firms worldwide lost more than $7 billion to internal fraud schemes, according to a “2018 Report to Nations,” by the Association of Certified Fraud Examiners (ACFE) — which analysed 2,600 real cases of occupational fraud from companies across 125 territories and 23 industries. Addressing the risk of fraud is a key challenge for all organisations and individuals.

 

Finterra being a technology company has its own manner in which it addresses fraud. Finterra's blockchain technology is by design an anti-fraud technology. Like all other blockchains, the essence of Finterra's blockchain technology is a shared and tamper-proof record of any manner of transactions that are time-stamped and verified by a distributed network of computers, providing a near real-time audit trail of information being exchanged. Hence, even if fraudulent information is recorded on a blockchain, there is a simple way to identify and tag the associated transactions.

 

Finterra's blockchain makes it  almost impossible to conduct a fraudulent transaction. The value sent from one digital currency wallet to another cannot exceed the amount recorded in the sender’s wallet. In this context, Finterra's blockchain could be very effective in addressing financial statement fraud schemes, which involve overstating assets, revenues and profits, and understating liabilities, expenses and losses (or the opposite) — costing organizations a median of $800,000 per case, according to the ACFE report. Potential fraudsters that are aware of this auditability and the permanence of these records are consequently unlikely to carry out their desired schemes.

 

Visit http://finterraventures.com/


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