With the widespread use of blockchain technology the number of frauds, scams, and illicit activities has reportedly surged, and to combat such things enforcement agencies worldwide have been leveraging similar technologies to net the ones intentionally looting innocent investors.
While addressing the third International Conference on Technology, Humanities, and Management held in Maldives, the chief commissioner of the Malaysian Anti-Corruption Commission, Tan Sri Azam, said that the evolving technology has made it difficult to track and combat the surging crimes.
It is worth noting that citing Azam, a Malaysian media outlet reported that, the Malaysian Anti-Corruption Department is integrating Artificial Intelligence and Blockchain technology in its investigation to combat the crimes in a much faster way.
He goes on to note that the surging technology has opened new doors for the bad actors to loot investors, but at the same time, these technologies have also provided a way for enforcement agencies to tackle this kind of illicit activity.
AI and blockchain a boom or a bane
Especially after the end of the global pandemic, COVID- 19 the adoption of blockchain technology saw a massive spike, and blockchain technology went viral in the early phase of 2022.
Malaysia’s independent government body, the MACC, is in charge of looking into and prosecuting cases of corruption in both the public and commercial sectors.
With the use of the new instruments, MACC will keep an eye on important areas with significant corruption risks, such as public procurement, law enforcement, financial transactions, and subsidy disbursements.
Because blockchain is decentralized and unchangeable, it can offer a safe basis for AI systems, guarding against data manipulation and guaranteeing the accuracy of AI decision-making.
Furthermore, the openness of blockchain can facilitate accountability and auditing by tracking AI decision-making processes.
Blockchain-based systems may be made more scalable and energy-efficient with AI. New business concepts, such as decentralized data marketplaces and AI-powered prediction markets, may result from this.
This integration has a lot of potential advantages, and it’s probable that a number of industries, including supply chain management, healthcare, and finance, will experience major breakthroughs.
Some blockchain ecosystems’ anonymity and lack of regulations may make it simpler for con artists to take advantage of AI-powered platforms, hence facilitating fraud and scams.
AI may also be used to develop complex phishing assaults, which make it more difficult for people to tell the difference between requests that are genuine and those that are not.
Deepfakes and fake news driven by AI have the potential to proliferate quickly on blockchain-based social media platforms, causing both financial losses and societal instability.
There is the possibility of prejudice and discrimination since AI systems have the potential to reinforce preexisting biases and discrimination, which can be exacerbated by the immutability of blockchain, which makes it more difficult to eliminate or rectify biased conclusions.