The effectiveness of blockchain technology in preventing financial cybercrime

Abstract

The primary objective of this research is to study the effectiveness of blockchain technology in preventing financial cybercrime. In this research, the researcher intends to know the effectiveness of blockchain technology in preventing financial cybercrime, the white-collar crime which is growing drastically globally. The researcher uses the primary method to collect the data. In this study, four different variables that influence financial cybercrime significantly are immutability, smart contract, distributed ledger technology and consensus algorithm. The data was collected from the targeted respondents which are accountants, IT experts and human resources. Statistical Package of the Social Sciences (SPSS) is being utilized to evaluate the relationship between the four variables which able to influence financial cybercrime. A total of 70 survey questionnaires were delivered to the targeted respondents via a convenience sampling strategy. Responses from 70 participants were entered into SPSS one by one to generate descriptive and inferential statistics. Financial cybercrime is positively correlated with immutability, smart contract, distributed ledger technology and consensus algorithms. As a result, the analysis of the collected data for this research rejects the null hypothesis, while supporting the alternative hypothesis. The conclusion that can derive from this research is that users and organizations should be aware of the financial cybercrime risks that take place around them and the importance to have vital tools that are not vulnerable to malicious attacks. This research creates awareness for users and companies on the usage of blockchain to prevent financial cybercrime.