How is Blockchain Technology cut down on credit card frauds?

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Blockchain The New Age Hack for Credit Card
Fraud
In the cashless economy, the common man, traders
and business professionals have switched to
alternative modes of payments. Like the liquid
cash, Digital transactions are also tampered by
unwanted elements in the cyber space. In an
attempt to safeguard customers from credit card
frauds, the RBI has revised its guidelines and
ruled out strict penalties. In a report to the
Nations on Occupational Fraud and Abuse issued by
the Association of Certified Fraud Examiners
(ACFE), the total loss caused by fraud events in
2016 exceeded 6.3 billion, with an estimated 5
loss of annual revenues in a typical organization.
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Credit card fraud and fake identities have been
listed in the Top 10 Operational Risk of 2017 in
a publication by Rish.net. In the modern-day
world, technology has been evolved that can
eliminate the risk of frauds The Blockchain
Technology.
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What is Blockchain Technology?
Putting in simple terms, Blockchain is a
decentralized ledger, shared among the
stakeholders of a business relationship. It is a
well-secured environment wherein, only verified
users can update, view and share critical
information digitally.
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People versed in cyber technology coin it as
cryptocurrency a technology that is transparent
and not controlled by any single unit. Executives
and economists have studied and found that the
GDP is bound to increase over 10 with the use of
this technology.
How is Blockchain Technology cut down on credit
card frauds?
Bank-to-bank transactions can also be a threat.
Such systems are vulnerable to cyber-attacks and
account up to frauds worth 20 billion dollars
every year.   Blockchain technology has a simple
implementation in credit card transaction. The
process flows as
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- A wants to send money to B - The transaction is
represented as a block - Blockchain is
broadcasted / notified to both the parties - The
parties verify it to be valid - The block is then
added to the chain of transactions where payment
is recorded - Money from source A moves to
B   Thus, eliminating the chance of operational
theft by third party, or denial of transaction
from the parties involved. This technology holds
records and electronic documents jointly shared
by the parties. The digital space gives an option
to the stakeholders to float smart contracts to
share the proceedings and manage the dealings.
Any update, modification or deletion will only be
carried out with the permission and verification
of trading parties involved.
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The convergence of trading finances and
cryptocurrency has created an altogether
real-time, publically verifiable set-up. It is
the best solution to combat issues like round
tripping in accounts, channel stuffing, currency
or revenue irregularities. In case of breach of
security, it is viable for forensic accountants
to track and examine the actions of the
unauthorized party in the network.
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The technology focuses on creating a global
network of digital currency that is transparent,
speedy and secure by all means. Lisa Ellis, the
senior analyst at Bernstein, ranked top payments
analyst by Institutional Investor believes that
Blockchain is getting a tremendous amount of
momentum independent of bitcoin in core banking.
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