Blockchain is one of the most effective new tools for law enforcement agencies in fighting cybercrime. As with any investigation of potential financial wrongdoing, authorities follow the money when using blockchain-enabled software. The advantage of blockchain is its immutable record of transactions that can allow detectives to trace funds back to their origin.
At the 2021 CoinGeek Conference in New York, a panel featuring an IRS agent, former Drug Enforcement Agency supervisor and current director of government and strategic affairs at the Blockchain Intelligence Group, and a pair of cybersecurity entrepreneurs discussed the state of cybercrime and why bad actors should be scared of the growing level of surveillance blockchain provides investigators.
Richard G. Reinhardt, a special agent at the IRS, said that his organization has seen a large increase in ransomware attacks on businesses. A government report corroborates that finding, stating cybercrime has increased by 600% since the start of the global pandemic. Cybersecurity Ventures, a magazine that covers the industry, estimates cybercrime will account for $6 trillion worth of damages to the worldwide economy before this year is done.
“Business email compromises have been increasing. The cybercriminals try to get in and if they succeed then they can get access to a corporate bank account. From there, they can remove funds or hold the network for ransom,” Reinhardt pointed out. “We use tools like blockchain to spot suspicious activity and then we follow the money to get to the illegal wallets.”
Those illegal wallets can be frozen and money service providers who use the blockchain can help track the flow of the funds. Those actions can stop money laundering, fraud, and scammers who target the general public.
The panelists commended the BSV blockchain for focusing from its inception on aiding law enforcement and making legal compliance a hallmark of its platform.
Ian Lee of Merkle Science told the CoinGeek audience at the Sheraton Times Square that he felt his company was “in good hands” after having chosen to build on BSV at the beginning of 2021. He noted the decentralized ledger and inherent transparency of the BSV blockchain were key assets in identifying unlawful activity in the digital world. As a single source of truth, the BSV blockchain benefits regulators and law enforcement agencies because they are all receiving the same data as they monitor for criminal activity.
With data accessible in real time, networks can be proactive in stopping fraud. That data is also encrypted and stored across a network of servers rather than a single server, so the risk of a network being compromised and sensitive information being lost is diminished.
Through TAAL, cybersecurity enterprises and organizations that have built on the BSV blockchain can reap the rewards of the network. TAAL’s transaction processing power allows for fast execution of data transactions in the BSV ecosystem and its blockchain infrastructure products and services allow for real-time monitoring.
More than $124 billion was spent globally on Internet security in 2019, and yet that wasn’t enough to stop record levels of criminal activity. Research has found that a cyberattack occurs every 39 seconds and 4,000 ransomware attacks take place each day. What that should tell enterprises is a better option needs to be deployed. Experts at the CoinGeek Conference believe blockchain provides that solution and it is BSV that is best designed to spook cybercrooks.