Hadi Sepanloo, - Tehran University, Department of Public Administration Manager of Planning Affair,Bank Mellat
Vahid Esmaeili, - School of Industrial Engineering, West Tehran Branch, Islamic Azad University,Engineering Campus, Tehran Yaas Industrial Engineering Company,
Maosud Narenji - Iran University of Science and Technology Yaas Industrial Engineering Company

The best method for any organization to protect themselves against possible fraud is to ensure that they have adequate fraud prevention and detection methods in place. Organizations need to realize the growing importance of addressing/controlling the risk of fraud in comprehensive and integrated manner, which would in turn benefit them in number of ways. Evaluating anti-fraud programs, controls, ethical conduct and compliance with policies and procedures in the business process by assessing its vulnerability to fraud is the foundation on which effective anti-fraud processes and tools are built. fraud detection proprietary tool, can profile and analyze financial and non-financial data across various areas and disparate systems to find anomalous relationships, transactions or unusual patterns, such as, duplicate supplier invoicing, ghost employees, altered payees, etc. This rigorous analysis can help organizations identify fraudulent activity; prioritize case management and investigation; and improve the false positive rate of detection and prevention strategies. Blockchain technology can and will help organizations to tackle fraud in this regard. Therefore, by the five years, we will see transaction volumes and the associated profit pools shifting from intermediaries toward the owners of new highly efficient blockchain platforms. These transactions could include transferring digital or physical assets, protecting intellectual property, and verifying the chain of custody. In an era of cyber-crime and stringent regulatory requirements, highly fraud-resistant system for protecting and authenticating almost any kind of transaction could have revolutionary impact on the financial services industry. Therefore, in this paper, we consider the design of mix of private blockchain/public blockchain technology which can create various metadata components, used to create unique series number. This number will be added to precious asset as well as the blockchain. Once the database contains sufficient data, if one cannot provide encrypted proof that he/she owns the right to that precious asset, the asset will lose its substantial value. Such blockchain-based prototype system is aimed at eliminating this type of fraud in letters of Credit (LoC) and increasing transparency regarding their flow in the banking systems. While the prototype is based on the specific context of issuing letter of credit, we discuss how it can be generalized for tracking other banking transactions

Blockchain, Fraud Detection, Letter of Credit