PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

What Will Stop Cryptocurrency Crime: Making Transactions Reversible or Identifying Participants?

By PaymentsJournal
September 26, 2022
in Analysts Coverage, Cryptocurrency, Digital Assets & Crypto
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Cryptocurrency-Based Fraud Regulatory Support cryptocurrency crime

Minimizing Cryptocurrency-Based Fraud without Regulatory Support

Stanford University researchers have proposed token standards, based on ERC-20 and ERC-721, that enable transactions to be unwound, which some argue breaks the cryptocurrency prime directive of immutability. What will stop cryptocurrency crime?

According to an article from The Defiant:

“Reversibility—the ability to redo transactions on blockchains—has long been a challenging project for crypto scientists. The Stanford team believe it may hold the key to making cryptocurrencies more protected from hackers. Chainalysis, the blockchain forensics firm, estimates that hackers stole $14B in crypto hacks during 2021. Yet to make this proposition work, technologists would have to tinker with one of the most sacred properties in cryptocurrency systems: immutability.” 

But is that really the best way to slow criminal activity?

Today the card networks and issuing banks offer zero liability, but that service often requires banks fund the criminal activity. The largest volume of card-related fraud is the direct result of improper or no cardholder identification—think prepaid cards—and a poor authentication process criminals can bypass. So much of the fraud loss experienced today could be prevented if issuers implemented better identity validation when accounts were opened and better authentication techniques across all their customer touchpoints, including card usage. Zero liability kicks in when those basic building blocks fail.

Criminals love pseudo-anonymity as do too many cryptocurrency business leaders. When you don’t need to worry where your investment dollars came from, business funding gets much easier. We were stunned when an honest CEO did what nobody else has done, he closed down his NFT business due to the rampant crime that was clearly visible. That article is important to read for anyone really interested in mitigating cryptocurrency and NFT criminal activity.

If we want cryptocurrencies to have a net positive impact on society, we need to know who was involved in the transaction and who is funding the business. Making it easier to unwind a completed transaction requires an arbiter which crosses another cryptocurrency tenant; the lack of any centralized authority.

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: AuthenticationcryptoCryptocurrencyFraudIdentity

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Cross-Border Payments

    How the U.S. Built Its Faster Payments Ecosystem

    April 3, 2026
    Young Latin woman applying powder on her face for beauty blog. Smiling woman sitting at table in cosy room holding powder box and brush looking at phone camera recording video. Make up and cosmetics blogging concept

    TikTok Aspires to Fintech Status with Payments, Credit Bids in Brazil

    April 2, 2026
    small business credit card

    What Banks Get Wrong About Small Business Credit Cards

    April 1, 2026
    embedded payments

    Embedding Payments for Growth: How ISVs Can Scale Through Vertical Focus and Partnerships

    March 31, 2026
    ACH fraud monitoring

    From a Checkbox to a Differentiator: Redefining ACH Fraud Monitoring

    March 30, 2026
    Digitization and Multi-Brand Cards: Prepaid Trends. Bancorp Bank prepaid card fees, Bitpay Prepaid Card, mobile prepaid debit cards, prepaid cards for councils

    Turning a Prepaid Card into a Long-Term Relationship

    March 27, 2026
    payments fraud, faster payments fraud, financial fraud

    The Emotional Toll of Financial Fraud

    March 26, 2026
    hyperliquid

    What Hyperliquid Reveals About the Future of Trading

    March 25, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result