An important aspect in the role of a forensic accountant is the ability to keep up with the latest trends, to stay one step ahead of any potential fraudsters. When conducting cryptocurrency fraud investigations, forensic accountants have been forced to devise a way to combine their traditional methods with more complicated techniques catered to the blockchain. This includes examining transactions, speaking to other parties involved, analysing internet traffic history, and more.Īdditionally, since all cryptocurrency transactions are recorded on the blockchain, and the most recognised names in the field (Bitcoin, Etherium, etc.) are public ledger traded (anybody within the network can see and analyse any transactions made), cryptocurrency can actually be highly useful for getting to the bottom of a forensic investigation. There are in fact a few ways an expert can link a digital wallet to the owning party. ![]() However, digital currency is neither totally untraceable or completely anonymous. As mentioned above, the relative anonymity of digital assets represent an opportunity for potential scammers. One of the most important aspects of a forensic accountant’s job is their ability to unearth vital hidden data and information. Due in part to its relatively new position in our society and its complicated nature for the unaware, blockchain and cryptocurrency are not, by any means, universally understood. Cryptocurrency forensics experts are hugely experienced and skilled accounting professionals who have chosen to go above and beyond with their training.īe it during a divorce/ matrimonial dispute, during a litigation, or when acting as an expert witness, getting across the intricacies and important details of a cryptocurrency investigation is vital. ![]() This is where forensic accounting can be invaluable. One of the most common reasons for this boom in cryptocurrency fraud can be attributed to the relative anonymity, and the lack of any one centralised supervision unit. The surge in the trading of digital assets goes hand in hand with the rise in cryptocurrency fraud cases in the UK and around the world. Fraud and Other Financial Investigations.
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