June 8, 2023
Aleksandar Tošić, InnoRenew CoE researcher, in collaboration with Jernej Vičič from the University of Primorska’s Faculty of Mathematics, Natural Sciences and Information Technologies, published a new scientific article, “Application of Benford’s Law on Cryptocurrencies” in the Journal of Theoretical and Applied Electronic Commerce Research.
The authors present research on the possibility of using the Benford’s Law conformity test for discovering anomalies, and possibly fraudulent behavior, in cryptocurrency transactions. Benford’s Law is a well-proven tool in accounting fraud discovery.
The paper’s results show that most of the cryptocurrencies that did not conform to Benford’s Law had well-documented anomalous incidents; therefore, the proposed method applies to the new cryptocurrency domain.