What is Leak Detection?
Lack of transparency and accountability can lead to financial losses, reputational damage, and regulatory issues. Leak detection is the process of identifying and mitigating the risks associated with non-recoverable transactions or data breaches.
Methods Used for Leak Detection
- Sandbagging: A technique where large volumes of dummy transaction data are used to mask the appearance of non-recoverable transactions.
- Landing Striping: A method where a portion of fake trades are made on behalf of the real entity, while the rest are left unverified and remain in limbo.
- Randomized Approaches: Using randomizing techniques to artificially inflate transaction amounts or create false positives.
Ensuring Leak Detection Integrity
Implementing robust leak detection systems requires careful consideration of data integrity, security, and compliance. This includes using secure protocols for verification and validation, as well as implementing regular audits to ensure the accuracy and reliability of results.