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Fraud detection, whiplash for cash scheme and Neo4j
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Fraud detection, whiplash for cash scheme and Neo4j

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A brief overview of how to use graph technologies to identify insurance scams. Read to learn how to use Neo4j and graph analytics to find criminals.

A brief overview of how to use graph technologies to identify insurance scams. Read to learn how to use Neo4j and graph analytics to find criminals.

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  • 1. Fraud detection and whiplash for cash schemes SAS founded in 2013 in Paris | http://linkurio.us | @linkurious
  • 2. WHAT IS A GRAPH? Father Of Father Of Siblings This is a graph
  • 3. 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
  • 4. 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
  • 5. Stage fake accidents and receive real money from insurance companies WHAT IS A WHIPLASH FOR CASH SCHEME Stage a fake car accident Fill insurance claims Cash in the check Based on the accident, they fill insurance forms to ask their insurance companies to cover for injuries and the car damages. The insurance company looks at the claim and writes a check to its customers. The fraudsters cash it. A few fraudsters get together. They define an accident scenario and enact it.
  • 6. But why is it hard to detect whiplash for cash fraud rings? WHY FRAUD DETECTION IS HARD
  • 7. The criminal keep their claims small, corroborate each other and pretend to have hard to disprove injuries PROBLEM 1 : CRIMINALS FLY BELOW THE RADAR
  • 8. From one accident to the next, the vehicles, the persons and their roles will change : hard to see a pattern emerge PROBLEM 2 : HARD TO SEE THE PATTERN IN A LARGE NUMBER OF ACCIDENTS
  • 9. How can graphs help? GRAPH AND FRAUD DETECTION
  • 10. A single accident doesn’t look suspicious A GRAPH DATA MODEL FOR A SINGLE ACCIDENT IS_LAWYER IS_DOCTOR Udo (Person) Monroe (Person) Robrectch (Person) Skyler (Person) Euanthe (Person) Jasmine (Person) Chelle (Person) Sousanna (Person) Focus (Car) Corolla (Car) Accident 1 (Accident) IS_INVOLVEDIS_INVOLVE D PASSENGER DRIVER DRIVER PASSENGER PASSENGER PASSENGER
  • 11. But representing the claim data as a graph makes it easy to spot a fraud ring WHAT DOES A FRAUD RING LOOK LIKE 3 separate accidents (above) involve a small set of 8 persons (below) who seem to have strong relationships : suspicious?
  • 12. HOW TO INVESTIGATE A WHIPLASH FOR CASH FRAUD RING : STARTING POINT The investigation starts with a car accident... As a fraud analyst, we’ll use a Neo4j graph database to investigate the claims data and see if we can spot something suspicious
  • 13. 1. Are the persons involved in the accident involved in other accidents? 2. If they are, who are they involved with? Are these people connected to other accidents? HOW TO INVESTIGATE A WHIPLASH FOR CASH FRAUD RING : QUESTIONS
  • 14. MATCH (accident)<-[]-(cars)<-[]-people-[]->(othercars)-[]->(otheraccidents:Accident) WHERE accident.location = 'New Jersey' RETURN DISTINCT otheraccidents.location as location, otheraccidents.date as date QUESTION 1 : ARE THE PERSONS INVOLVED IN THE ACCIDENT INVOLVED IN OTHER ACCIDENTS A simple Cypher query for Neo4j
  • 15. location date Florida 23/05/2014 Florida 27/05/2014 QUESTION 1 : ARE THE PERSONS INVOLVED IN THE ACCIDENT INVOLVED IN OTHER ACCIDENTS Our suspects are involved in 2 more accidents
  • 16. With a simple “*” we are expanding our search across the graph QUESTION 2 : WHO ARE THEY INVOLVED WITH MATCH (accident)<-[*]-(potentialfraudtser:Person) WHERE accident.location = 'New Jersey' RETURN DISTINCT potentialfraudtser.first_name as first_name, potentialfraudtser. last_name as last_name
  • 17. first_name last_name Udo Halstein Robrecht Miloslav Monroe Maksymilian Skyler Gavril Euanthe Rossana Jasmine Rhea Sousanna Pinar Chelle Jessie QUESTION 2 : WHO ARE THEY INVOLVED WITH We have a group of 8 people involved in 3 accidents
  • 18. What if we want to detect automatically these suspicious behaviour? QUESTION 3 : IS IT POSSIBLE TO DETECT THE FRAUD
  • 19. Looking in real time for highly connected “accidentees” QUESTION 3 : IS IT POSSIBLE TO DETECT THE FRAUD MATCH (person1:Person)-[*..2]->(accident1:Accident)<-[*..2]-(person2:Person)-[*..2]-> (accident2:Accident)<-[*..2]-(person3:Person)-[*..2]->(accident3:Accident) RETURN DISTINCT person1, person2, person3
  • 20. QUESTION 3 : IS IT POSSIBLE TO DETECT THE FRAUD It is possible to look for suspicious patterns at large scale An event triggers security checks New customer New car registered New accident A Neo4j Cypher query runs to detect patterns Identification of the fraudsters
  • 21. 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.
  • 22. DEMO Go to linkurio.us to try it!
  • 23. TECHNOLOGY Cloud ready and open-source based
  • 24. OTHER USE CASES Graphs are everywhere, learn to leverage them
  • 25. CONCLUSION Contact us to discuss your projects at contact@linkurio.us
  • 26. Presentation on fraud and whiplash for cash by Philip Rathle and Gorka Sadowski (the inspiration for this presentation) : https://vimeo.com/91743128 Article on whiplash for cash : - the article : http://linkurio.us/whiplash-for-cash-using-graphs-for-fraud-detection/ - the dataset : https://www.dropbox.com/s/6ipfn4paaggughv/Whiplash%20for%20cash.zip GraphGist on whiplash for cash : - the article : http://gist.neo4j.org/?6bae1e799484267e3c60 Whitepaper on fraud detection by Philip Rathle and Gorka Sadowski : - the whitepaper : http://www.neotechnology.com/fraud-detection/ SOME ADDITIONAL RESOURCES TO CONSIDER

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