Contact person: Fraud-Prevention Blockchain Ecosystem Development

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Location: Bamako, Mali

Budget: Recommended by industry experts

Time to start: As soon as possible

Project description:
"Technical Business Plan
Fraud Prevention Blockchain Ecosystem

1. Project Overview
This project proposes the development of a real-time fraud prevention ecosystem that integrates with financial data providers (e.g., Plaid or equivalents) to verify transactions by requiring user confirmation through SMS, email, or mobile applications.
If a transaction is flagged as suspicious, users can instantly freeze their account, with all critical events immutably logged on a blockchain ledger accessible by all merchant nodes.

2. Core Features & Architecture
A. User Application
• Receive real-time transaction alerts
• Confirm or deny suspicious transactions
• Instantly freeze/unfreeze cards or accounts
• Manage identity sharing and privacy preferences

B. SDK for Merchant/Partner Apps
Use Case:
Merchant or partner platforms (e.g., e-commerce stores, payment apps, fintech services) integrate the SDK into their mobile/web apps to:
• Prompt users with real-time alerts when any transaction is initiated
• Let users approve or deny transactions, adding a friction layer against fraud
• Notify users of account activity (e.g., login from a new device, password reset)

Secure APIs – Use Cases
1. Verify User Identity Tokens
Use Case:
After a user signs in or connects via OAuth/SAML/OpenID, the system receives a token. Use this API to:
• Validate the token came from a trusted identity provider
• Confirm the session is legitimate
• Prevent spoofed or tampered sessions

C. Backend Services
• Onboard users and link to financial institutions
• Detect fraud using rule-based or AI-based scoring engines
• Deliver notifications via SMS, email, or push
• Log critical events on a distributed ledger
• Manage orchestration of freeze workflows

D. Distributed Ledger (Blockchain)
• Store cryptographic hashes of events (e.g., transactions, identity proofs)
• Maintain an immutable, auditable record
• Enable trusted collaboration across institutions
• Any transaction flagged as fraudulent gets recorded on the blockchain and unable to complete any transaction

3. Integration with Financial Data Providers
• Use financial data aggregation APIs (e.g., Plaid) to access identity and transaction data with user consent
• Translate financial events into verifiable blockchain proofs
• Ensure compliance with data privacy regulations and API providers’ policies

4. Biometric Verification Layer (User-Permissioned)
To enhance security and reduce friction in the verification process, the system supports biometric authentication (e.g., fingerprint or facial recognition) on supported devices.
Key Benefits:
• User convenience: Reduces dependency on SMS or email verification
• High security: Biometric data remains on the user's device; only confirmation signals are transmitted
• User-controlled: Enabled only upon user permission; can be toggled in the app settings

How It Works:
When a transaction is flagged or verification is required:
• If the user has enabled biometrics, the system prompts for facial recognition or fingerprint scan
• If biometric verification succeeds: The transaction proceeds (or is denied, based on user input)
• If biometric fails or is unavailable: Fallback to SMS, email, or app-based confirmation

Use Case Example:
• A user prefers not to approve every transaction via email or SMS
• They enable biometric verification in their settings
• When a suspicious purchase occurs:
o The app prompts for a quick fingerprint scan
o If successful, the transaction is confirmed (or denied)
o The entire event is logged immutably on the ledger" (client-provided description)