Impact of Blockchain Technology in Modern Banking Sector to Exterminate the Financial Scams

Abstract

The paper examined the use of blockchain in banking sector. With the increase of user’s interest in banking sector, transactions are conducted online or via physical credit scanners. Banking sector is easy target for the hackers. Unauthorized person can hostage the bank data by using cyber security threats such as phishing attack, Ransomware attack, and Denial of Service (DoS). The only solution to secure the customer precious data is blockchain. It has the potential to considerably decrease costs and it can completely alter the banking industry. The present centralized banking system can be strengthened using blockchain technology. Due to the transparency, auditability, immutability, operational resilience and data encryption essential in blockchains, it can secure the cyber security, forbid crooked actions and perceived tampering of data. Blockchain technology will deal the movement in the banking industry and associated facilities in prevailing area. Correspondingly inspecting cases both at home and abroad, it might be recognized areas that blockchains are used aggressively, utilized in banking sections are growing into remittance, resolution, smart contracts and reliability. Multi-factor authentication (MFA) technique is used to find the legitimate users by demanding a user to conform multiple identification information. The username and password can easily be hacked by unauthorized person, so we create a new authentication method that can’t be hacked with the help of Blockchain Techn[1]ology.

¹Deputy Director Quality Assurance Agency, Higher Education Commission, Islamabad, Pakistan.

 ²Deptt. Of CS & IT, The IUB, Bahawalpur, Pakistan

3 Department of Management Sciences, Shifa Tameer-e-Millat University, Islamabad.