The Role of Blockchain and Distributed Ledger Technologies in Revolutionizing Fraud Detection and Risk Management Strategies in Global Trading Networks

Abstract

Global trading networks face significant challenges in fraud detection and risk management due to their complexity, the proliferation of intermediaries, and the siloed nature of data. Traditional systems often fail to provide real-time visibility into transactions, increasing the risk of fraud and systemic failures. Blockchain and Distributed Ledger Technologies (DLTs) offer innovative solutions to these problems through decentralized, immutable, and transparent systems of record. This paper explores how blockchain can revolutionize fraud detection and risk management in global trading networks by enabling real-time tracking, smart contracts, and enhanced auditability. Additionally, it examines the challenges of scalability, interoperability, and regulatory compliance, outlining future directions for blockchain-based solutions.