Biblio

Frauds in supply chain finance not only result in substantial loss for financial institutions (e.g., banks, trust company, private funds), but also are detrimental to the reputation of the ecosystem. However, such frauds are hard to detect due to the complexity of the operating environment in supply chain finance such as involvement of multiple parties under different agreements. Traditional instruments of financial institutions are time-consuming yet insufficient in countering fraudulent supply chain financing. In this study, we propose a novel blockchain-driven framework for deterring fraud in supply chain finance. Specifically, we use inventory financing in jewelry supply chain as an illustrative scenario. The blockchain technology enables secure and trusted data sharing among multiple parties due to its characteristics of immutability and traceability. Consequently, information on manufacturing, brand license, and warehouse status are available to financial institutions in real time. Moreover, we develop a novel rule-based fraud check module to automatically detect suspicious fraud cases by auditing documents shared by multiple parties through a blockchain network. To validate the effectiveness of the proposed framework, we employ agent-based modeling and simulation. Experimental results show that our proposed framework can effectively deter fraudulent supply chain financing as well as improve operational efficiency.

With the rapid development of e-commerce and the increasing popularity of credit cards, online transactions have become increasingly smooth and convenient. However, many online transactions suffer from credit card fraud, resulting in huge losses every year. Many financial organizations and e-commerce companies are devoted to developing advanced fraud detection algorithms. This paper presents an approach to detect fraud transactions using the IEEE-CIS Fraud Detection dataset provided by Kaggle. Our stacked model is based on Gradient Boosting, LightGBM, CatBoost, and Random Forest. Besides, implementing StackNet improves the classification accuracy significantly and provides expandability to the network architecture. Our final model achieved an AUC of 0.9578 for the training set and 0.9325 for the validation set, demonstrating excellent performance in classifying different transaction types.

We investigate what we call the "Bitcoin Generator Scam" (BGS), a simple system in which the scammers promise to "generate" new bitcoins using the ones that were sent to them. A typical offer will suggest that, for a small fee, one could receive within minutes twice the amount of bitcoins submitted. BGS is clearly not a very sophisticated attack. The modus operandi is simply to put up some web page on which to find the address to send the money and wait for the payback. The pages are then indexed by search engines, and ready to find for victims looking for free bitcoins. We describe here a generic system to find and analyze scams such as BGS. We have trained a classifier to detect these pages, and we have a crawler searching for instances using a series of search engines. We then monitor the instances that we find to trace payments and bitcoin addresses that are being used over time. Unlike most bitcoin-based scam monitoring systems, we do not rely on analyzing transactions on the blockchain to find scam instances. Instead, we proactively find these instances through the web pages advertising the scam. Thus our system is able to find addresses with very few transactions, or even none at all. Indeed, over half of the addresses that have eventually received funds were detected before receiving any transactions. The data for this paper was collected over four months, from November 2019 to February 2020. We have found more than 1,300 addresses directly associated with the scam, hosted on over 500 domains. Overall, these addresses have received (at least) over 5 million USD to the scam, with an average of 47.3 USD per transaction.

Frauds are known to be dynamic and have no patterns, hence they are not easy to identify. Fraudsters use recent technological advancements to their advantage. They somehow bypass security checks, leading to the loss of millions of dollars. Analyzing and detecting unusual activities using data mining techniques is one way of tracing fraudulent transactions. transactions. This paper aims to benchmark multiple machine learning methods such as k-nearest neighbor (KNN), random forest and support vector machines (SVM), while the deep learning methods such as autoencoders, convolutional neural networks (CNN), restricted boltzmann machine (RBM) and deep belief networks (DBN). The datasets which will be used are the European (EU) Australian and German dataset. The Area Under the ROC Curve (AUC), Matthews Correlation Coefficient (MCC) and Cost of failure are the 3-evaluation metrics that would be used.

Anomaly detection generally involves the extraction of features from entities' or users' properties, and the design of anomaly detection models using machine learning or deep learning algorithms. However, only considering entities' property information could lead to high false positives. We posit the importance of also considering connections or relationships between entities in the detecting of anomalous behaviors and associated threat groups. Therefore, in this paper, we design a GCN (graph convolutional networks) based anomaly detection model to detect anomalous behaviors of users and malicious threat groups. The GCN model could characterize entities' properties and structural information between them into graphs. This allows the GCN based anomaly detection model to detect both anomalous behaviors of individuals and associated anomalous groups. We then evaluate the proposed model using a real-world insider threat data set. The results show that the proposed model outperforms several state-of-art baseline methods (i.e., random forest, logistic regression, SVM, and CNN). Moreover, the proposed model can also be applied to other anomaly detection applications.

The purpose of Complex Networks Monitoring and Security and Fraud Detection for Enterprises - CoNeSec track is two-fold: Firstly, the track offers a forum for scientists and engineers to exchange ideas on novel analytical techniques using network log data. Secondly, the track has a thematic focus on emerging technology for complex network, security and privacy. We seek publications on all theoretical and practical work in areas related to the theme above.

In this paper, we focus on fraud detection on a signed graph with only a small set of labeled training data. We propose a novel framework that combines deep neural networks and spectral graph analysis. In particular, we use the node projection (called as spectral coordinate) in the low dimensional spectral space of the graph's adjacency matrix as the input of deep neural networks. Spectral coordinates in the spectral space capture the most useful topology information of the network. Due to the small dimension of spectral coordinates (compared with the dimension of the adjacency matrix derived from a graph), training deep neural networks becomes feasible. We develop and evaluate two neural networks, deep autoencoder and convolutional neural network, in our fraud detection framework. Experimental results on a real signed graph show that our spectrum based deep neural networks are effective in fraud detection.

Reputation systems in current electronic marketplaces can easily be manipulated by malicious sellers in order to appear more reputable than appropriate. We conducted a controlled experiment with 40 UK and 41 German participants on their ability to detect malicious behavior by means of an eBay-like feedback profile versus a novel interface involving an interactive visualization of reputation data. The results show that participants using the new interface could better detect and understand malicious behavior in three out of four attacks (the overall detection accuracy 77% in the new vs. 56% in the old interface). Moreover, with the new interface, only 7% of the users decided to buy from the malicious seller (the options being to buy from one of the available sellers or to abstain from buying), as opposed to 30% in the old interface condition.