To safeguard against fraudulent activity in blockchain ecosystems, businesses can take advantage of blockchain’s transparency and security. The immutable ledger of the blockchain’s ledger enhances the cryptographic ability to verify transactions transparently, making it difficult for fraudsters to alter the publicly recorded transaction. Particularly, using Verifiable Credentials technology can also boost trust and authenticity in supply chains by ensuring that products are legitimate and have not been compromised. Businesses must also review smart contracts thoroughly to ensure security and reduce vulnerabilities. Enhanced identity verification can also ensure legitimate participants are involved on the blockchain, while auditing KYC and AML mechanisms are useful in reducing fraud risk. The ability to monitor and track transactions in real time enhances the ability to detect anomalies that can indicate fraud. Moreover, limiting the use of intermediaries should help reduce the opportunity for fraud and expertise in cybersecurity best practices such as multi-factor authentication and encryption should protect against external cyber-attack. By ensuring compliance with the relevant standards from local regulations, training employees on best practices, and selecting cybersecurity insurance businesses can mitigate fraud. A combination of these techniques can significantly reduce the probability of engaging in fraud and trustless transactions on blockchain systems while ensuring data integrity.