CBDC Fraud Prevention: Lossless Protocol ($LSS) Is the Only Proven Blockchain Rollback, Recall & Chargeback Solution

Financial fraud is accelerating worldwide. In 2023 alone, over $33 billion was lost to card fraud, with billions more disappearing through scams, hacks, and cybercrime. As Central Bank Digital Currencies (CBDCs), stablecoins, and tokenized assets become part of the global financial system, these risks don’t shrink — they grow larger. Traditional finance has always had safety nets like chargebacks, recalls, reversals, refunds, clawbacks, and dispute resolution, but on blockchain the reality is very different: once a transaction is confirmed, it is final and irreversible. This lack of protection represents a fatal flaw for CBDCs, digital assets, and institutional blockchain adoption, leaving governments, banks, and enterprises exposed to systemic risk.

The Lossless Protocol provides the missing solution. It is the first and only live, battle-tested blockchain rollback solution, delivering crypto chargeback mechanisms, blockchain chargebacks and transaction rollbacks, and clawback and dispute resolution mechanisms on blockchain through transparent governance and immutable audit trails. Unlike monitoring systems or insurance, which can only detect or offset fraud after the fact, Lossless actively prevents permanent loss by enabling freeze windows and governed transaction reversals. It has already demonstrated success by recovering $16.7 million in the Cream Finance exploit and $800,000 in the Vulcan Forged hack, proving that digital asset fraud recovery on-chain is possible today.

For regulators and policymakers, this approach ensures ISO 20022 blockchain compliance and creates confidence in CBDC fraud prevention and central bank digital currency fraud protection. For enterprises and custodians, it represents institutional blockchain security solutions and enterprise crypto fraud mitigation that align with MPC/HSM custody practices. For markets built on tokenized assets, the Lossless framework delivers a tokenized asset security framework that supports cross-border settlements and dispute resolution. By combining CBDC rollback technology with a crypto fraud chargeback system, blockchain transaction dispute resolution, and institutional-grade governance, the Lossless Protocol establishes itself as the essential enforcement layer for the future of digital finance.

Fraud is inevitable, but permanent loss isn’t. The future of money requires rollbacks, recalls, chargebacks, refunds, reversals, and clawbacks, and the only proven way to bring them to blockchain is through the Lossless Protocol.

1. The Fatal Flaw in CBDCs The $33 BILLION dollar problem. What happens when billions in fraud meet irreversible blockchain settlement? The Lossless Protocol Solution

2. The $33 Billion Problem $33B lost to card fraud in 2023 FTC: $12.5B U.S. consumer fraud FBI IC3: $16B cybercrime losses Fraud moves in days on legacy systems... On CBDCs, fraud moves in seconds

3. The Fatal Flaw in CBDCs No recalls or dispute mechanisms Irreversible settlement One wrong transfer = catastrophic loss No safety net for consumers or banks

4. Why Regulators Will Never Approve CBDCs Without Rollback Traditional rails: recalls, disputes, indemnities ISO 20022 already encodes recalls & resolutions Without rollback: systemic exposure Consumer trust collapses without safeguards

5. What If Blockchain Had an Emergency Brake? Lossless Protocol = Freeze + Rollback The ONLY live, battle-tested rollback solution Recovered $16.7 MILLION (Cream Finance) Recovered ~$800K (Vulcan Forged)

6. How Lossless Protocol Works 1. Detection → fraud alert 2. Freeze window (24–48h) 3. Governance review & on-chain vote 4. Rollback or unfreeze 5. Immutable audit log for regulators

7. WHO WAS LOSSLESS PROTOCOL DEVELOPED FOR?

8. Institutional Fit Maps to ISO 20022 recall (camt.056) & resolution (camt.029) Neutral governance, auditable processes Integrates with custody, compliance, risk engines Future-proof for banks, CBDCs, enterprises

9. The Future of Trusted Money Fraud is inevitable. Losses don’t have to be. Lossless provides the missing rollback control Essential for CBDCs, banks, and regulators Would you trust money without a recall button?

10. Official Website https://lossless.io

11. Legal / Disclaimer Disclaimer This presentation is provided for educational and informational purposes only . It is not intended to constitute investment advice, financial advice, legal advice, or any other form of professional guidance. The information contained herein has been compiled from sources believed to be reliable; however, no representation or warranty, express or implied, is made as to its accuracy, completeness, or timeliness. The content reflects general views on blockchain technology, digital assets, and the Lossless Protocol as of the date of preparation and may be subject to change without notice. References to fraud statistics, regulatory frameworks, case studies, or specific companies are included for illustrative purposes only. Past recoveries or outcomes do not guarantee future results. The mention of the Lossless Protocol or any other technology does not imply endorsement, assurance of performance, or suitability for any particular use case. Digital assets, cryptocurrencies, and CBDCs involve significant risks, including but not limited to volatility, regulatory uncertainty, operational vulnerabilities, and potential loss of funds. Before making any financial, legal, or technical decisions, viewers are strongly encouraged to seek independent advice from qualified professionals. Neither the presenter, authors, nor any affiliated parties shall be held liable for any direct, indirect, or consequential losses arising from reliance on the information presented.