Automated Trusted Collaborative Processes through Blockchain & IoT Integration: The Fraud Detection Case

Abstract

Collaboration of business processes is essential for business-to-business (B2B) processes. Collaboration is interesting and important in connecting the digital context with the physical world (IoT) to feed processes with data or send data. However, it also presents multiple challenges, such as the lack of trust between participants with each other and additional privacy and security problems in the communicated data. Fraud detection is crucial for many type of organisations that deal with B2B transactions (banking, fintech, health, etc.) and are therefore exposed to a high risk of fraud. Fraud detection requires expensive professional investigations and intensive collaboration between processes of different organisations. This issue could be mitigated by effectively managing digital evidence, fostering trust and ensuring security for various stakeholders involved in the business processes. This paper proposes an approach to modelling and deploying any collaborative business process scenario, ensuring trust, security, and data privacy. Collaboration-level agreements are defined as a means to ensure trust, security, and data privacy. To accomplish this, our approach enables the automatic generation Smart Contract templates for the collaboration-level agreement specification involving different stakeholders in the collaboration. The Smart contracts are deployed in a Blockchain to ensure that the collaboration-level agreement conditions are signed by the parties. To validate the feasibility of our approach, a proof-of-concept for a fraud detection scenario is implemented, where different metrics are tested in relation to a set of threats and vulnerabilities.