3. Fraud Detection & Data Integrity Verification

Edma leverages AI-powered fraud detection and blockchain-based data integrity verification to ensure that ESG data is accurate, verifiable, and free from manipulation. By utilizing machine learning, anomaly detection, and decentralized validation, Edma safeguards sustainability reporting against greenwashing and fraudulent claims.

Key Features of Fraud Detection & Data Integrity Verification

1. AI-Powered Anomaly Detection

• Machine learning algorithms analyze ESG data patterns to detect inconsistencies.

• AI flags suspicious transactions and energy production claims that deviate from historical benchmarks.

• Reduces greenwashing risks by identifying manipulated sustainability reports.

2. Cross-Validation with IoT & Smart Meters

• AI cross-checks energy production data from IoT smart meters to verify tokenized energy claims.

• Prevents fraudulent carbon credit issuance by ensuring data authenticity.

• Ensures that renewable energy certificates (RECs) and carbon credits are backed by actual, verifiable data.

3. Blockchain-Backed Data Integrity

• ESG records are hashed and stored on the blockchain, ensuring tamper-proof sustainability reporting.

• Smart contracts automatically verify data consistency across multiple sources.

• Decentralized auditing ensures that no single entity can manipulate compliance records.

How It Works in Edma

1. AI scans ESG data for irregularities and inconsistencies in sustainability claims.

2. Machine learning models analyze IoT energy data to verify renewable energy production.

3. Blockchain immutably stores validated ESG records, ensuring fraud-proof sustainability tracking.

4. Smart contracts enforce ESG compliance by cross-referencing real-time energy data.

By integrating AI-driven fraud detection and blockchain-based data integrity, Edma ensures that ESG compliance data remains transparent, verifiable, and immune to manipulation, fostering trust in sustainability reporting.