Using Artificial Intelligence To Detect Fraud On The Blockchain

Cryptocurrencies witnessed extensive attention from both academia and industry after the inflation in 2017. This broad recognition has led to its adoption by people beyond the research domain. This increased adoption may be attributed to the overall increase in the valuation of the cryptocurrencies which at its peak in 2017 reached a combined valuation of 900 Billion USD (Cryptocurrency Market Capitalizations 2019). At the time of writing, the cryptocurrencies hold a combined valuation of 200 Billion USD (Cryptocurrency Market Capitalizations 2019). This market capitalization makes cryptocurrencies very lucrative for attackers with malicious intents. A well-orchestrated attack on these cryptocurrencies may allow an attacker to attain monetary gain. The research on the security of blockchain has identified a number of attack vectors (Chia et al., 2018). One such attack vector is the coordinated manipulation of the blockchain services (for example, a pump and dump scheme to artificially inflate the price of an Initial Coin Offering (Li, Shin, and Wang, 2018)).