using graph technologies to fight fraud
TRANSCRIPT
Using graph technologies to fight fraud.
SAS founded in 2013 in Paris | http://linkurio.us | @linkurious
French startup specialized in graph-visualization.
CTO
Web-scale archiving
Université de Technologie de
Compiègne
CMO
>5 years in consulting
Sciences Po + Ecole de Guerre
Economique
JeanVilledieu
SébastienHeymann
DavidRapin
CEO
Created Gephi
Phd in CS and complex systems
from UPMC
What is a graph?
Father Of
Father Of
Siblings
A graph is a set of nodes and relationships.
This is a node
This is a relationship
Father Of
Father Of
Siblings
Why graphs are important?
Rise of complex and connected data.
Increase in volume
New processes, more transactions, more social devices, more devices, etc.
Increase in connectedness
Customers, products, processes and devices interact with each other.
Relational DBS are not good at relationships.
● Cannot model data and relationships without complexity;
● Performance degrades with number and levels of relationships, and database size;
● Adding new types of data and relationships requires schema redesign.
Graph DBs unlock connected data.
● Store graphs of billions of nodes and edges;
● Query the graph to find interesting patterns;
● Popularity of graph databases has increased 500% in the last 2 years;
● Recommendation, fraud detection, network management, cybersecurity, health...
Why does it work well for fraud?
Layer 1 Layer 2 Layer 3 Layer 4 Layer 5
Endpoint-centric
Navigation-centric
Analysis of users and their endpoints
Account-centric
Cross-channels
Entity link analysis
Analysis of navigation behavior and suspect patterns
Analysis of anomaly behavior on a per-channel basis
Analysis of anomaly behavior correlated on a cross-channel basis
Analysis of relationships to detect organized collusion
Network analysis offers a unique opportunity to identify the sophisticated fraudsters who work under the radar but in a coordinated fashion.
AML.
Normal customer #1
Normal customer #2
In business with
Suspicious individual Known criminal
In business with
In business with
Are my customers in contact with criminals?
Conflict of interest.
Are my vendors linked to my employees?
New vendor
Address
Employee
Registered address
Phone number
Registered phone Registered phone
Registered address
Synthetic identity.
Customer #1
Address
Customer #2
Phone number
Bank loan Bank loan
Am I loaning money to people who don’t exist?
Swiss Leaks.
Finding the real owners of $100 billion.
Real owner Pseudo owner Offshore entity Swiss bank account
Controls ControlsMarried
Stolen credit cards.
Customer #1
Merchant #3
Customer #2
Merchant #2
Merchant #1 Merchant #4
Who is stealing credit cards?
Normal TX
Contested TX Contested TX
Normal TX
Contested TX Contested TX
First enterprise-ready graph visualization platform.
Improve your fraud detection system.
Detect new fraud cases.
Graph databases like Neo4j provides the ability to identify fraud patterns at scale.
Faster fraud investigations.
Linkurious provides a simple interface to investigate suspicious patterns.
How it works.
Legacy DB
DB
On-premise server Web-browser
Pricing.
Starter Enterprise Toolkit
Search and explore your data
Enterprise-ready security and collaboration
Build or improve an existing web application
Desktop Server Code
Single user Mature organization Mature organization
€990/user/year €1,990/user/year €30,000/product/year
Conclusion.
Question?
Want to know more?
● Insider trading: https://linkurio.us/using-graphs-to-uncover-insider-trading-schemes/● Conflict of interest: https://linkurio.us/fraud-detection-identifying-conflicts-of-interest-with-graphs/● Synthetic identify: https://linkurio.us/how-to-detect-bank-loan-fraud-with-graphs-part-1/ and
https://linkurio.us/how-to-detect-bank-loan-fraud-with-graphs-part-2/● Ecommerce fraud: https://linkurio.us/reshipping-scams-and-network-visualization/● Swiss Leaks: https://linkurio.us/how-the-icij-used-linkurious-to-reveal-the-secrets-hidden-in-the-
swiss-leaks-data/● Fraud detection in retail: https://linkurio.us/fraud-detection-in-retail/● Credit card fraud: https://linkurio.us/stolen-credit-cards-and-fraud-detection-with-neo4j/