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ALL ABOUT BLOCK CHAIN
BLOCK CHAIN
Blockchain is
a decentralized and distributed ledger technology that records information across multiple computers, also known as nodes. It enables secure and transparent transactions and data sharing without the need for intermediaries.
Here's how it works:
1. Distributed Network: A blockchain network consists of multiple nodes, each maintaining a copy of the entire blockchain. These nodes communicate with each other to validate and agree on the transactions that occur on the network.
2. Blocks and Transactions: Transactions are grouped together in blocks and added to the blockchain in a sequential order. Each block contains a unique identifier, a timestamp, and a reference to the previous block, creating a chronological chain.
3. Consensus: Nodes validate and agree on the transactions that will be included in the next block. This process is achieved through consensus algorithms like Proof of Work (PoW) or Proof of Stake (PoS), ensuring agreement and security on the network.
4. Blockchain Security: Once a block is added to the chain, it becomes difficult to alter or tamper with previous transactions. This is due to the cryptographic hash function used, which creates a unique identifier (hash) for each block based on its contents.
5. Decentralization: Blockchain operates in a decentralized manner where no single entity has control over the network. Instead, consensus mechanisms distribute authority among the participating nodes.
6. Transparency: All transactions within a blockchain network are visible to all participants. Every node has access to the complete transaction history, promoting transparency and trust.
7. Smart Contracts: Blockchain can also support smart contracts, which are self-executing agreements with predefined rules. They automatically trigger transactions based on certain conditions, eliminating the need for intermediaries.
Overall, blockchain provides trust, security, transparency, and efficiency in various industries like finance, supply chain, healthcare, and more.
Here are ten examples of blockchain technology and its varied applications:
1. Cryptocurrencies: The most well-known application of blockchain is cryptocurrencies like Bitcoin, Ethereum, and Litecoin, which leverage blockchain technology for secure and decentralized digital transactions.
2. Supply Chain Management: Blockchain can be used to track and trace goods throughout the supply chain, ensuring transparency, authenticity, and accountability. Companies like IBM and Walmart are exploring this application.
3. Digital Identity Management: Blockchain can provide a secure and decentralized system for managing digital identities, protecting personal information, and reducing identity theft and fraud.
4. Voting Systems: Blockchain-based voting systems can enable secure, transparent, and tamper-proof elections, ensuring the integrity of the voting process.
5. Healthcare Records: Blockchain can improve the management and security of patient records, enabling secure sharing of medical data among healthcare providers, reducing errors, and preserving privacy.
6. Intellectual Property Protection: Blockchain can provide a timestamped and tamper-proof record of intellectual property rights, ensuring authenticity and preventing unauthorized use or infringement.
7. Energy Trading: Blockchain can facilitate peer-to-peer energy trading, allowing individuals and businesses to buy and sell excess renewable energy directly, without the need for intermediaries.
8. Insurance: Blockchain can streamline insurance processes, automate claims management, and enhance fraud detection by providing a transparent and immutable record of policies and transactions.
9. Decentralized Cloud Storage: Blockchain-based decentralized storage platforms offer secure and efficient storage solutions, allowing individuals and businesses to store and retrieve data without relying on centralized servers.
10. Real Estate Transactions: Blockchain can simplify and expedite property transactions by digitizing and automating the transfer of ownership, reducing paperwork, and enhancing transparency.
These are just a few examples, and the potential applications of blockchain technology are expanding rapidly across various industries.
Kollururao
Kollururao - Professional Chartered Accountant and Fraud Forensic Consultant
BE WARE OF FRAUDS-
Kollururao - Professional Chartered Accountant and Fraud Forensic Consultant
BEWARE OF CREDIT CARD FR
BEWARE OF BANK FRAUDS
Kollururao - Professional Chartered Accountant and Fraud Forensic Consultant
BE WARE OF IDENTITY THEFT
Kollururao - Professional Chartered Accountant and Fraud Forensic Consultant
STOP FRAUD,FIGHT FRAUDS AND BE WARE OF FRAUDS.
Stock investment frauds using celebrity names on the rise in
Stock Market Scams-Mmbai
Mumbai police reported 355 investment fraud cases in May, arresting 91 people. Scammers, often linked to China, use fake apps and social media to target victims
As the stock market booms, market-related frauds are not far behind. The Mumbai police have registered 355 investment-related frauds in May this year, arrested 91 people and are investigating 76 cases. According to the Indian Cybercrime Coordination Centre (I4C), people across the country lost ₹7,061.51 crore to cyber frauds in just four months this year, with the lion’s share of ₹1,420.48 crore going to scamsters luring people to invest in the stock market. oose from a wide range of online courses offered by Kollururao and learn at your own pace. With interactive lessons and experienced instructors, you can gain new skills and knowledge from the comfort of your home.
Police officials said most of the rackets originated in Cambodia, Myanmar, Hong Kong, Dubai and Laos. The web applications used in these crimes are written in Mandarin, thus raising the high possibility of a Chinese link to the major cyber crimes affecting India.
Most of the scams are “pig-butchering” ones, where the accused pose as stock market experts and promise guaranteed returns. These scamsters approach victims mostly via social media or WhatsApp and Telegram messages. They pay the social media platforms higher rates to ensure that their advertisements appear prominently.
“A 54-year-old real estate consultant from Vile Parle was cheated of ₹2.25 lakh by someone using the name of Pune-based “finfluencer” Rachna Ranade,” said a police officer. “The victim saw some deep fake videos of Ranade on a social media platform. When he clicked on the link, he was connected to some WhatsApp and Telegram channels on which members had posted messages, announcing the “huge” profits they had earned by investing in the stocks recommended by experts.”
MONEY LAUNDERING
MONEY LAUNDERING
Money laundering is the process of illegally concealing the origin of money obtained from illicit activities such as drug trafficking, underground sex work, terrorism, corruption, embezzlement, and gambling, and converting the funds into a seemingly legitimate source, usually through a front organization.
Here are a few examples of common money laundering techniques:
1. Shell Companies: Criminals set up fictitious businesses or shell companies, which exist only on paper, to make it appear as though the money being transferred or received is from a legitimate business source.
2. Trade-Based Laundering: Criminals use over- or under-invoicing of goods or services during international trade transactions to manipulate the prices, quantities, or descriptions of the products to move money across borders and disguise the illicit funds.
3. Smurfing: Also known as structuring, this involves breaking down a large sum of money into smaller deposits or transactions that are below the threshold for triggering suspicion in financial institutions. This helps to avoid detection and raise fewer red flags.
4. Casinos and Gambling: Criminals may use casinos or online gambling platforms to launder money by exchanging cash for chips or placing bets with illicit funds and then cashing out the winnings as "clean" money.
5. Cryptocurrencies: Criminals might use digital currencies such as Bitcoin to convert their illicit funds into virtual assets. They can then employ various techniques to obscure the source and ownership of these assets to further hide the true origin of the money. It's important to note that these are just a few examples, and money laundering can take many other forms depending on the creativity and sophistication of the individuals involved. MONEY LAUNDERING laundering
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Forensic Accountat & Internal Auditor
Forensic Accountant AND Internal Auditor:
An Internal auditor is one who is appointed by the Management to assist inbringing to light accounting errors, reconcile accounts, verification of stocks on timely basis to exercise controls on the organisation’s assets and for effective implementation of company’s policies and procedures as per the respective SOP manuals.
Internal auditing is part of overall Internal Controls of the Organisation. The frequency of an internal auditor’s reportingmay be monthly reporting, orquarterly reporting as per the engagement terms. Internal audit is for improving the effectiveness of business operations, risk management and thus provide an independent assurance to the Management.
An internal auditor is anindependent qualified Chartered Accountant’s Firm. Internal auditors differfrom statutory auditors, the latter are appointed by the company in the Annual General Meeting and the audit is conducted once in a year and the reporting is to the shareholders. Bankers, Creditors,Shareholders and all other third parties reply on a statutory auditor’s report for lending monies for various purposes. The Internal auditor helps the Managements in taking timely real-time actions as well assist in stock taking and accounting for assets of the company on regular basis.
However, it may be noted that it is not the duty of an Internal Auditor to investigate into fraudsor conduct forensic audits.
Internal audit Process involves the following steps:
1. Internal audit Assignment Terms-Monthly or quarterly Reporting and areas to be covered specifically.
2.Audit programme-Periodical check covering all segments of the business process.
3. Maintaining Audit Working Papers-Permanent & Other working notes andDocumentation
4.Discussions with management and other concerned departments on the issues raised during audit
5.Obtaining replies from the management to audit queries and
6.Final Internal audit report, with the observations, recommendations for improvement and any specific matter requiring immediate attention of the management.
Statutory Auditor:
A statutory auditor of a company is appointed in an annual general meeting and reports to
the shareholders of the company. The financial statements audited by an external statutory auditor are for reporting to shareholders. Bankers, creditors and any third party interested in investment or mergers, takeovers, reply on statutory auditor’s report, though some may go for a separate due diligence before taking major investment decisions. Thus, a statutory auditor is only a watch dog unlike a forensic accountant who is like a blood hound. A statutory audit is conducted once in a year, based on test checking of the transactions and reporting on the True & Fairness and Going concern concept.
Forensic Accountant-Auditor:
Objectives and methodology of Forensic Audit:
Forensic Accounting/Audit has gained importance due to increase in financial frauds, white collar crimes and cybercrimes. It is a specialised field of accounting for investigating frauds and for analysing financial information for using in any litigation or legal proceedings. Forensic accounting techniques involves auditing and investigative skills and skills of fraud investigation.
Forensic accountants perform the following functions:
1.Work place frauds
2.Insolvancy, bankruptcy and reorganisations
3.Computer forensics
4.Business valuations for takeover, mergers
A fraud is a misrepresentation of facts which the person making knows it be false or misleading and the person relying on such “representation”relies on it and believes it to be true and in the process,incurs monetary losses or parts with something that belongs to him and thus becomes a “victim” of fraud by the perpetrator.
Normally the word forensic is associated with methods or techniques used scientifically in the investigation of a crime.Forensic accounting is the use of professional accounting skills in matters which involves civil or criminal litigation. Thus, forensic accounting deals with litigation support involving accounting.Thus, Forensics means suitable for use in the courts of law. Forensic accounting involves retrieval of accounting data that may be concealed with an intent on fraud or to hide any specify information from the eye of the public, thus it is a critical examination of the accounting and differs from internal or statutory auditing.
In the present age of cybercrime, forensic accounting or audit has gained utmost importance to critically and deeply investigate into the various aspects of accounting of an organisation.
It is further to be noted that all fraud examination involves forensic accounting but not all forensic accounting is fraud examination. In a fraud examination,usually a fraud has taken place but in forensic accounting engagement, itdoes not necessarily mean any fraud has taken place. For example, if there is a business valuation the organisation may hire an accountant for forensic audit.
A forensic accounting or audit is compulsorily undertaken by an accountant where as a fraud examiner need not necessarily by an accountant and even non-accountants also perform fraud examination. Many a fraud examination. In Forensic accounting’s scope, it involves litigation and evidence proof before a court of law and all fraud reporting, examinations are done with “eye towards litigation”.
The techniques used in Forensic accounting include:
1.Conventional auditing and accounting tools.
2.Benfrd’s Law Test or “Z” Test-To measure significance of variations between two populations.
3. Theory of relative size factor-Ratio of the largest number to the second largest number.
4. CAAT-Computer assisted auditing tools.
The need for forensic accounting/Audit has come due to failure of statutory and Internal audits, with their limitations in the scope and objective vis-à-vis Forensic Accounting. A Forensic accountant hounds for conclusive evidence and deliberately tries to find Misstatements in the accounts unlike an auditor who tries to find deliberate misstatements.
Thus, a Forensic accounting involves:
1. Application of specialised knowledge.
2.Act as expert witness in a court of law.
3.Litigation consultancy.
4.Fraud detection.
5.Computer forensics.
6. Requires the use of knowledge from many disciplines.
7. Forensic accountant is a blood hound.
Thus, it may be concluded that Forensic audit is not new and history can be traced to 1890, Sir Arthur Conan Doyle’s fictional character, the famous detective Sherlock Holmes. A forensic accounting is an investigative accounting unlike Internal auditing or statutory audits, which are more to comply with statutory regulations.
A Forensic accountant can take a seemingly needle in-a-hay stack Pile of financial information and distil it into the important elements that need to be presented clearly and concisely as court room testimony.The preparation of financial statements has some but not all characteristics of forensic accounting.
CHAIN OF CUSTODY
CHAIN OF CUSTODY
CHAIN OF CUSTODY
FORENSIC SCIENCES-"CHAIN OF CUSTODY"
Forensic Sciences-Chain Of Custody:(A Brief Note)
In forensic sciences the most important aspect is Chain of Custody. What it means is the total flow of actions taken from beginning till the end.
All the steps taken at the outset till investigation process the flow of events must be properly documented. The reason being all forensic cases end up in courts, and the judiciary will take their deliberations and final conclusions based only on Facts and Evidence, to the satisfaction of the courts.
Hence to present a case “Chain of Custody” is very important process. If there is no proper and clear chain of custody latter there will be allegations of improper care of the evidence collected which may result in the courts acquitting the guilty in the case involved, due to poor evidence and poor chain of custody.
- Basically Chain of custody involves the following stages:
- Record keeping
- Usage of strong and reliable tools and techniques
- Isolating and keeping separate properly secured all the gathered and available evidence.
- Clearly showing from whom evidence is received and to whom passed on
The integrity of the evidence should be maintained without tampering or compromising in any way.
For example, if there is a murder in a forest, chain of custody documentation and evidence collection starts from the scene of the crime in the forest and goes on till the specimens are sent to a lab, even abroad, where necessary;
At every stage a document is prepared showing full details of each person at different stages of evidence collection, of their names, designation, place where evidence was collected, what has been collected and to whom it is forwarded next.
This documentation is highly needed to fix responsibility on the person .It thus safe guards the evidence and helps in detecting the crime .Such evidence can also be effectively produced in courts.
A good chain of custody is not only a good organized management policy of documents but also stops any attempt by the defense that the evidence is of “reasonable doubt”, regarding the integrity of the samples and evidence produced by prosecution, as the party offering the evidence has the burden of proving that the evidence is genuine and authentic.
Field staff is responsible for properly identifying the evidence collected by Labeling the samples collected and also attaching photographs of the crime scene, evidence collected and any other relevant items of evidence collected.
All labels, markings must be done with water proof and non-erasable inks. All such evidence and samples should be sealed in a transparent cover and properly sealed and stamped with the company seal.
The written document should be properly signed and names written clearly by both the original evidence collector and the next person to whom the evidence packet is passed for further processing, so that there will not be any doubts about the origin and subsequent flow and change of hands and also protects from tampering of the evidence .
Thus basically a proper chain of custody will show 1. Who collected it 2. Who received it 3. Who processed it and finally 4.who saved it. This will fix responsibility in the event of any suspicion of tampering with the samples and evidence collected, There are instances of cases where the guilty are acquitted, due to lack of proper chain of custody and prosecution could not prove their case in the courts.
- Thus chain of custody involves:
- . Integrity of custody-for control of evidence.
- Anyone who collects the evidence should carefully preserve the same in the same condition as it was found till latter date when it is used in a court of law and for further analysis, without tampering.
- The collected evidence must be properly cataloged, sealed and stored, by the concerned person who forms the chain of custody.
- The collected evidences should be sealed in a transparent evidence bag. The details like who collected, what is collected, date of collection, to whom addressed should be clearly written ,and signed off by the person ho sealed and also by the person to whom the bag is addressed.
- It is highly essential to follow the above processes of chain of custody by all the concerned persons through whom the evidence collected changes hands ,as it may take several number of days, or weeks or months or years before the case is closed.
- The first responder plays very important role in a chain of custody as the evidence collected at the first instance should be carefully cordoned off, photographed and the environment also should not be disturbed.
- The first responder should call and keep everyone concerned informed and maintain a call log sheet.
- He should know immediately whom to call and inform, without tampering evidence.so that one can gather as much information as possible and inform as many people a possible.
- The chain of custody document is a legal document.
