How to use graphs to identify credit card thieves?
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How to use graphs to identify credit card thieves?

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Graph technologies like Neo4j and Linkurious can help spot credit card thieves. How? Read this use case to learn!

Graph technologies like Neo4j and Linkurious can help spot credit card thieves. How? Read this use case to learn!

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How to use graphs to identify credit card thieves? How to use graphs to identify credit card thieves? Presentation Transcript

  • How to use graphs to identify credit card thieves SAS founded in 2013 in Paris | http://linkurio.us | @linkurious
  • WHAT IS A GRAPH? Father Of Father Of Siblings This is a graph
  • WHAT IS A GRAPH : NODES AND RELATIONSHIPS Father Of Father Of Siblings A graph is a set of nodes linked by relationships This is a node This is a relationship
  • People, objects, movies, restaurants, music Antennas, servers, phones, people Supplier, roads, warehouses, products Graphs can be used to model many domains DIFFERENT DOMAINS WHERE GRAPHS ARE IMPORTANT Supply chains Social networks Communications
  • But why can graphs can help identify credit card thieves? GRAPH AND FRAUD DETECTION
  • Get access to the numbers...and turn them into cash HOW CREDIT CARD THIEVES OPERATE Steal the credit card Make online purchases Turn goods in cash Later on, the criminal uses the credit card numbers to make purchases online. He chooses items that can be sold back. The criminal intercepts the goods at the shipping address. He sells back the goods : now he has cash! The criminal is an employee in a store. During check-out he copies the credit card information of certain customers.
  • The first step to detect card thieves is to turn transaction history into a graph A GRAPH DATA MODEL TO IDENTIFY CARD THIEVES Paul (Person) Nicole (Person) (Merchant) (Merchant) (Merchant)(Merchant) (Merchant) HAS_BOUGHT_AT29$ (05/05/2014) 8$ (05/05/2014) HAS_BO UG HT_AT 19.5$ (05/05/2014) HAS_BO UG HT_AT 8$ (06/05/2014) HAS_BOUGHT_AT 10.5$(05/05/2014) HAS_BOUGHT_AT 199$ (08/05/2014) HAS_BO UG HT_AT 78.9$ (08/05/2014) HAS_BOUGHT_AT The edges are transactions. In red two fraudulent transactions.
  • WHERE IS THE THIEF? We are looking for the common connection between the 2 victims….
  • The only place the theft could have happened is at the coffee shop... LOOKING AT THE COMMON CONNECTION Paul (Person) Nicole (Person) (Merchant) (Merchant)(Merchant) (Merchant) HAS_BOUGHT_AT29$ (05/05/2014) 8$ (05/05/2014) HAS_BO UG HT_AT 19.5$ (05/05/2014) HAS_BO UG HT_AT 8$ (06/05/2014) HAS_BOUGHT_AT 10.5$(05/05/2014) HAS_BOUGHT_AT 199$ (08/05/2014) HAS_BO UG HT_AT 78.9$ (08/05/2014) HAS_BOUGHT_AT (Merchant)
  • WHAT IF WE NEED TO ANALYSE >100M TRANSACTIONS? Doing it in real life involves querying a large number of transactions to find connections
  • THE PAINS OF WORKING ON CONNECTED DATA WITH RELATIONAL TECHNOLOGIES Relational databases are not good at handling... relationships Depth RDBMS execution time (s) Neo4j execution time (s) Records returned 2 0.016 0.01 ~2500 3 30.267 0.168 ~110 000 4 1543.505 1.359 ~600 000 5 Unfinished 2.132 ~800 000 Finding extended friends in a 1M people social network (from the book Graph Databases)
  • GRAPH DATABASES MAKE IT POSSIBLE TO QUERY LARGE GRAPHS Graph databases makes it possible to identify the fraud patterns in real-time An event triggers security checks Customer complaint Suspicious transaction Merchant alert A Neo4j Cypher query runs to detect patterns Identification of the fraudsters
  • EXAMPLE : A GRAPH QUERY TO IDENTIFY CREDIT CARD THIEVES MATCH (victim:person)-[r:HAS_BOUGHT_AT]->(merchant) WHERE r.status = "Disputed" MATCH victim-[t:HAS_BOUGHT_AT]->(othermerchants) WHERE t.status = "Undisputed" AND t.time < r.time WITH victim, othermerchants, t ORDER BY t.time DESC RETURN DISTINCT othermerchants.name as suspicious_store, count(DISTINCT t) as count, collect(DISTINCT victim.name) as victims ORDER BY count DESC
  • EXAMPLE : A GRAPH QUERY TO IDENTIFY CREDIT CARD THIEVES MATCH (victim:person)-[r:HAS_BOUGHT_AT]->(merchant) WHERE r.status = "Disputed" We select the victims, people involved in “disputed” transactions MATCH victim-[t:HAS_BOUGHT_AT]->(othermerchants) WHERE t.status = "Undisputed" AND t.time < r.time We look at the transactions that happened before the fraudulent transactions WITH victim, othermerchants, t ORDER BY t.time DESC RETURN DISTINCT othermerchants.name as suspicious_store, count(DISTINCT t) as count, collect(DISTINCT victim.name) as victims ORDER BY count DESC We return the list of suspicious merchants, ordered by the number of transactions they are involved in Complete explanation and dataset here!
  • The fraud teams acts faster and more fraud cases can be avoided. WHAT IS THE IMPACT OF LINKURIOUS If something suspicious comes up, the analysts can use Linkurious to quickly assess the situation Linkurious allows the fraud teams to go deep in the data and build cases against fraud rings. Treat false positives Investigate serious cases Save money Linkurious allows you to control the alerts and make sure your customers are not treated like criminals.
  • DEMO Go to linkurio.us to try it!
  • TECHNOLOGY Cloud ready and open-source based
  • OTHER USE CASES Graphs are everywhere, learn to leverage them
  • CONCLUSION Contact us to discuss your projects at contact@linkurio.us
  • Article on credit card thieves identification - the article : http://linkurio.us/stolen-credit-cards-and-fraud-detection-with-neo4j/ - the dataset : https://www.dropbox.com/s/4uij4gs2iyva5bd/credit%20card%20fraud.zip GraphGist on credit card fraud : - the article : http://gist.neo4j.org/?3ad4cb2e3187ab21416b SOME ADDITIONAL RESOURCES TO CONSIDER