The security and privacy challenges of blockchain in the financial sector, including the risk of hacking and fraud
DOI:
https://doi.org/10.58213/vidhyayana.v8i5.698Keywords:
Blockchain Technology, Financial Sector, Security, Privacy, Hacking, Fraud, AdoptionAbstract
The use of blockchain technology in the financial sector has gained significant attention in recent years, due to its potential to improve efficiency, transparency, and security in financial transactions. Blockchain technology's privacy and security issues, together with the possibility of fraud and hacking, are a significant worry for the financial sector. The aim of this study is to analyze the privacy and security risks posed by blockchain technology in the financial industry and to determine how well security features and privacy protections work towards fraud and hacking. A literature review of journals articles and research paper are all part of the study design, which uses a systematic investigation approach. The results of the study will provide insights into the security and privacy challenges of blockchain technology in the financial sector and will inform stakeholders about the effectiveness of security measures and privacy features in preventing hacking and fraud, and the impact of security and privacy on the adoption and usage of blockchain technology in the financial sector. The findings of this study will contribute to the body of knowledge on blockchain technology and security and privacy challenges in the financial sector and will inform policymakers and regulators on the development of regulations and standards for ensuring the security and privacy of blockchain technology in the financial sector.
Downloads
References
Chang, V., Baudier, P., Zhang, H., Xu, Q., Zhang, J., Arami, M., 2020b. How Blockchain can impact financial services–The overview, challenges and recommendations from expert interviewees. Technol. Forecast. Soc. Change. https://doi.org/10.1016/j.techfore.2020.120166.
Helo, P., Hao, Y., 2019. Blockchains in operations and supply chains: a model and reference implementation. Computers & Industrial Engineering. https://doi.org/10.1016/j.cie.2019.07.023.
Zhang, L., Xie, Y., Zheng, Y., Xue, W., Zheng, X., Xu, X., 2020. The challenges and countermeasures of blockchain in finance and economics. Syst. Res. Behav. Sci. 37 (4), 691–698.
Zheng, Z., Xie, S., Dai, H.N., Chen, X., Wang, H., 2018. Blockchain challenges and opportunities: a survey. International Journal of Web and Grid Services 14 (4), 352–375.
Nofer, M., Gomber, P., Hinz, O., Schiereck, D., 2017. Blockchain. Business & Information Systems Engineering 59 (3), 183–187.
Andoni, M., Robu, V., Flynn, D., Abram, S., Geach, D., Jenkins, D., Peacock, A., 2019. Blockchain technology in the energy sector: A systematic review of challenges and opportunities. Renewable and Sustainable Energy Reviews 100, 143–174.
Yoo, S., 2017. Blockchain based financial case analysis and its implications. Asia Pacific Journal of Innovation and Entrepreneurship 11 (3), 312–321.
Zhang, P., White, J., Schmidt, D.C., Lenz, G., Rosenbloom, S.T., 2018. FHIRChain: applying blockchain to securely and scalably share clinical data. Comput. Struct. Biotechnol. J. 16, 267–278.
Sharma T.K. (.2018). Which Indian bank uses Blockchain Technology? (Accessed on 15th Jan, 2023)- https://www.blockchain-council.org/blockchain/which-indian-bank-uses- blockchain-technology/.
Puthal, D., Malik, N., Mohanty, S.P., Kougianos, E., Yang, C., 2018. The blockchain as a decentralized security framework [future directions]. IEEE Consumer Electronics Magazine 7 (2), 18–21.
Knirsch, F., Unterweger, A., Engel, D., 2019. Implementing a blockchain from scratch: why, how, and what we learned. EURASIP Journal on Information Security 2 (1), 1–14.
Rijmenam M.V. (2018). Blockchain – 7 benefits for the financial Services Industry, (Accessed on 5th february 2023) - https://londonspeakerbureau.com/blockchain-7-benefits- financial-industry/.
Eyal, I., 2017. Blockchain technology: transforming libertarian cryptocurrency dreams to finance and banking realities. Computer (Long Beach Calif) 50 (9), 38–49.
Kshetri, N., 2017. Blockchain’s roles in strengthening cybersecurity and protecting privacy. Telecomm. Policy 41 (10), 1027–1038.
Kewell, B., Adams, R., Parry, G., 2017. Blockchain for good? Strategic Change 26 (5), 429–437.
Swanitiinitiative (2018). Improving Public Service Delivery through Blockchain Technology. (Accessed on 22nd February 2023)-http://www.swaniti.com/wp- content/uploads/2018/02/Blockchain-Paper_Swaniti-Initiative-1.pdf.
Younus, D., Muayad, A. and Abumandil, M., 2022. Role of smart contract technology blockchain services in finance and banking systems: concept and core values. Mohanad, Role of Smart Contract Technology Blockchain Services in Finance and Banking Systems: Concept and Core Values.
Guo, H. and Yu, X., 2022. A Survey on Blockchain Technology and its security. Blockchain: research and applications, 3(2), p.100067.
Osmani, M., El-Haddadeh, R., Hindi, N., Janssen, M. and Weerakkody, V., 2021. Blockchain for next generation services in banking and finance: cost, benefit, risk and opportunity analysis. Journal of Enterprise Information Management, 34(3), pp.884-899.
Kumari, A. and Devi, N.C., 2022. The Impact of FinTech and Blockchain Technologies on Banking and Financial Services. Technology Innovation Management Review, 12(1/2).
Srikant RP,.2019. Our learnings from implementing Blockchain ( Assessed on 23th February 2023)https://www.expresscomputer.in/blockchain/our-learnings-fromimplementing-blockchainabhijitsinghicicibank/34717/#:~:text=The%20blockchain%20application%20created%20by%20ICICI%20Bank%20digitises,ability%20to%20access%20a%20single%20source%20of%20inform ation.
Bank enables blockchain based trade financing operation: (Accessed on 25th February 2023) https://economictimes.indiatimes.com/industry/banking/finance/kotak-mahindra- bank-enables-blockchain-based-trade-financing-operation/articleshow/58714243.cms
Trivedi, S., Mehta, K. and Sharma, R., 2021. Systematic literature review on application of blockchain technology in E-finance and financial services. Journal of technology management & innovation, 16(3), pp.89-102.
Jon Raphael and Amy Steele., Impact of blockchain in accounting: (Accessed on 22nd February 2023)-https://www2.deloitte.com/us/en/pages/audit/articles/impact-of- blockchain-in-accounting.html
Miranda Wood., 2019. Infosys blockchain trade finance: (Accessed on 22nd February 2023)-https://www.ledgerinsights.com/r3-infosys-blockchain-trade-finance/
Tim Swanson, Blockchain key challenges, Audit transformation and opportunities in cognitive, blockchain, and talent, Deloitte.: (Assessed on 26th February 2023) https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/Innovation/deloitte-uk- blockchain-key-challenges.pdf
Re imagining trade blockchain: (Accessed on 27th February 2023)- https://www.edgeverve.com/finacle/testimonials/re-imagining-trade-blockchain/
Shrinivasan Reddy., 2020. Finacle inducted in IFSCA regulatory plan for blockchain finance: (Assessed on 22th February 2023)-https://www.business- standard.com/article/companies/infosys-finacle-inducted-in-ifsca-regulatory-plan-for- blockchain-finance-122080100433_1.htm
https://www.invoicemart.com/about-us/overview : (Accessed on 27th February 2023)
Shivam Vahia., 2021. Banks are joining forces to use blockchain to power letters of credit: (Accessed on 1st March2023)- https://www.businessinsider.in/cryptocurrency/news/sbi-hdfc-icici-and-12-others-banks- are-joining-forces-to-use-blockchain-to-power-letters-of-credit-a-move-that-could-be-a- boon-for-msmes/articleshow/83570874.cms
ICICI BANK., 2017. Picture was referred from (Accessed on 4th March 2023)- https://www.icicibank.com/blogs/banking-innovation/blockchain-infographic.
Venkatesha N. Vyaya and Anjani Kumar., 2019. Blockchain adoption in financial sector: (Accessed on 2nd March 2023) -https://www.infosys.com/industries/financial- services/white-papers/documents/blockchain-adoption-financial-services.pdf.
