Blockchain-Based Secure Financial Transactions a Framework for Cross-Border Payments and Fraud Detection

Abstract

Decentralized finance systems with lower costs, faster turnaround times, and a lower risk of fraud could enable crossborder financial transactions. By their very nature, these organizations possess inadequate fraud detection measures and opacity. Through the use of smart contracts and decentralized ledgers, the blockchain-based solution offers a means of eliminating middlemen, which can reduce processing times and costs. Additionally, the proposed system utilizes machine learning (ML) algorithms for instant fraud detection and employs cryptography for security. The results suggest that the proposed system is superior in terms of decision accuracy, with a decision accuracy of 94.2%, a decision time of 5 minutes, and only 20% of the need for human interaction. These are in comparison to the various existing systems that require human involvement, which can reach up to 85%. In addition, it outperforms the existing systems with 96.5% compliance and 91.6% anomaly detection, leading to enhanced risk identification, better governance, and increased compliance. It improves the efficiency, security, and transparency of crossborder payments.