How blockchain technology can address fraud in financial markets: The case of South Africa

Abstract

Blockchain is now a powerful tool against dishonesty in the world of finance, offering new ways to make systems safer and more transparent and to help people trust the system. But we’re still figuring out which rules and official structures are needed for blockchain to work well, and how it can specifically reduce fraud in South African financial markets. This research examines how blockchain can address fraudulent financial activities. The researcher conducted extensive reading, identified useful materials, used a specific method to select which materials to draw information from, and carefully collected key details and insights from them. This information was then sorted into topics. The researcher then examined how the different sources related to one another to identify where they agreed, disagreed, or held differing views. They then brought all this analysed information together to form a conclusion and gain some understanding of the original question. Blockchain can significantly reduce fraud in the financial world by using various processes to make systems work better, be more secure, and more open. Features like immutable records, greater transparency, smart contracts, identity verification, real-time checks, fraud prevention with security tokens, and lower costs are all ways blockchain could help combat fraud. Financial markets using blockchain should have strong rules from the government and financial authorities. This means having very clear rules for oversight, being transparent about what is happening, and following the law to build trust, openness, and a system of accountability. What the research shows is important for policymakers and regulators. By showing how blockchain can make markets more honest and reduce fraud, the research suggests regulators should develop rules that allow this technology to be used in finance.

Keywords: {'name': 'Blockchain technology'}, {'name': 'Financial markets'}, {'name': 'Fraud'}

Authors & affiliations

Dickson Mdhlalose
National Electronic Media Institute of South Africa

Jabulani Hlungwana
IIE Rosebank college

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