Blockchain-Based Solution for Detecting and Preventing Fake Check Scams

Badis Hammi (1) , Sherali Zeadally (2) , Yves Christian Elloh Adja (3, 4) , Manlio Del Giudice (5, 6) , Jamel Nebhen (7)

1 EPITA - Ecole Pour l'Informatique et les Techniques Avancées
2 UK - University of Kentucky
3 C2 - Cybersécurité et Cryptographie
4 INFRES - Département Informatique et Réseaux
5 University of Rome, Link Campus
6 PSB - Paris School of Business
7 PSAU - Prince Sattam Bin Abdul-Aziz University

Fake check scam is one of the most common attacks used to commit fraud against consumers. This fraud is particularly costly for victims because they generally lose thousands of dollars as well as being exposed to judicial proceedings. Currently, there is no existing solution to authenticate checks and detect fake ones instantly. Instead, banks must wait for a period of more than 48 hours to detect the scam. In this context, we propose a blockchain-based scheme to authenticate checks and detect fake check scams. Moreover, our approach allows the revocation of used checks. More precisely, our approach helps the banks to share information about provided checks and used ones, without exposing the banks’ customers’ personal data. We demonstrate a proof of concept of our proposed approach using Namecoin and Hyperledger blockchain technologies.

Mots clés: Authentication; Blockchain; Fake check; scam; Hyper-ledger Fabric; Integrity; Namecoin; Security

Domaines: Informatique [cs]

Badis Hammi, Sherali Zeadally, Yves Christian Elloh Adja, Manlio Del Giudice, Jamel Nebhen. Blockchain-Based Solution for Detecting and Preventing Fake Check Scams. IEEE Transactions on Engineering Management, 2022, 69 (6), pp.3710-3725. ⟨10.1109/TEM.2021.3087112⟩. ⟨hal-04400815⟩