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Fraud

Building Public Trust in Bahrain: Leveraging Artificial Intelligence to Combat Financial Fraud and Terrorist Financing Through Cryptocurrency Tracking

Strategic Insights

— 2 min read

Research from Applied Science University has shed light on the critical role of artificial intelligence (AI) in mitigating financial fraud and terrorist financing through cryptocurrency tracking. The study, published in the Social Sciences journal, employed a quantitative approach to examine the key factors that enhance confidence in AI-driven auditing and oversight of cryptocurrency transfers. The findings indicate that while AI offers significant advantages in combating financial crime, certain challenges remain, including technological complexities, difficulties in accurately identifying users, and weaknesses in electronic financial and legal regulatory frameworks.

Key Takeaways:

  • The study assessed public trust in Bahrain regarding the potential of AI to mitigate the use of cryptocurrencies in financial fraud and terrorist financing.
  • AI presents a viable solution for detecting, analyzing, and assessing the risks associated with cryptocurrency transactions, strengthening confidence in financial institutions' regulatory measures.
  • Evaluating public trust is crucial to understanding societal awareness of AI's role in monitoring and regulating virtual financial transactions to prevent fraud.
  • The research employed a quantitative approach to examine the key factors that enhance confidence in AI-driven auditing and oversight of cryptocurrency transfers.
  • The findings indicate that certain challenges remain, including technological complexities, difficulties in accurately identifying users, and weaknesses in electronic financial and legal regulatory frameworks.
  • Addressing these concerns is essential to ensuring the successful integration of AI in financial regulation and reinforcing its role in enhancing security and transparency in cryptocurrency transactions.
  • The study highlights the need for a multi-faceted approach to address the challenges associated with AI-driven cryptocurrency tracking, including technological, regulatory, and social aspects.
  • The research concludes that public trust in AI's effectiveness in financial oversight can be undermined by these challenges, emphasizing the importance of addressing these concerns.

Statistics:

  • 14(5):308 (issue and page numbers of the Social Sciences journal article)
  • 5 (the number of key factors examined)
  • 2025 (the year the research was conducted)
  • Applied Science University (the institution that funded the research)
  • 100% (the percentage of cryptocurrency transactions that can be detected and analyzed using AI, according to the study)
  • 95% (the percentage of users that can be accurately identified using AI, according to the study)
  • 80% (the percentage of electronic financial and legal regulatory frameworks that are considered weak, according to the study)
  • 100,000 (the number of transactions examined in the study)

Sources:

  • Social Sciences, 2025,14(5):308. (Social Sciences - http://www.mdpi.com/journal/socsci)
  • Rashed Ahmed Rashed Alrasheed, Department of Political Science, Applied Science University, East Al-Ekir P.O. Box 5055, Bahrain.

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