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Online Fraud Detection with AI
Yanhui Wang (wangyanhui@360.cn)
AGENDA
1. ONLINE FRAUD
2. FRAUD DETECTION WITH AI
3. THE CHALLENGE IN THE FUTURE
1. ONLINE FRAUD
1. ONLINE FRAUD
Online fraud is quite
popular because of
the growth of online
services.
1. ONLINE FRAUD
Bad actors take advantage
of various technologies to
make profits and evade
detection.
1. ONLINE FRAUD
A typical Scenario of online
fraud-User Acquisition Fraud
which means fraudsters trick
advertisers into spending
money on fake users and
fraudulent traffic.
1. ONLINE FRAUD
A typical Scenario of online
fraud-account takeover
fraud, where a fraudsters
takes over an account using
an account holder’s online
credential.
1. ONLINE FRAUD
A typical Scenario of online
fraud-spamming, which is
the use of messaging
systems to send an
unsolicited message (spam),
especially advertising, as
well as sending messages
repeatedly .
2. FRAUD DETECTION WITH AI
THE TRADITIONAL METHODS TO COMBAT FRAUDSTERS:
THE INFORMATION WE CAN USE:
User activities are the best
features which is hard to be
mimicked by fraudsters.
RTFDP
This platform consists of three layers:
Algorithms Learning Engine, RealTime
Detection Engine, and Application
Layer.
We store all the historical activity
information about a user, and judge
whether the user is a bad actor
whenever he/she generates a new
activity.
We credit every user with a score which
is range 0 and 1, and the service
provider can take measures to block the
bad actor correspondingly.
DASHBOARD AND REPORTING
THE ALGORITHMS IN RTFDP:
The Algorithms in RTDP include:
LR, GS+Isolated Trees, FM, LPA,
LSTM.
We are now researching on using
more AI algorithms to detect more
Fraudsters, such as
CNN+LSTM+CRF.
SOLVED PROBLEMS:
This system can solve these problems effectively.
User Acquisition Fraud Marketing Campaign
Fake App Install Account takeover
Bad Bots
Fake traffic
WHAT WE FOUND IN OUR ONLINE SERVICES ARE:
Bad Bots: 0.5% of the UV in an app are bad crawler bots.
Fake APP Install: over 60% APP install from DSP is fake.
Device info: fraudsters tend to use older devices because of low costs.
Spam: 20% posts in our live streaming platform are fake.
Location: most of bad actors in China are located in Guangdong
province.
3. THE CHALLENGE IN THE FUTURE
3. THE CHALLENGE
• Cyber attackers are constantly
devising new techniques to
evade security defenses.
• They use the latest mobile
hacker tools and cloud
technology to impersonate
legitimate users. They even
begin to use AI to emulate real
users’ activities.
• Fraudsters have begun to use
real users to cheat by offering
online lucrative jobs. These
users are real users, but they
are not our targeted users.
• Increasing data breaches make
it easier for fraudsters to commit
various frauds. With all
compromised credentials and
PII, bad actors can act as
legitimate users.
Thanks

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online_fraud detection _____________________________________________

  • 1. Online Fraud Detection with AI Yanhui Wang (wangyanhui@360.cn)
  • 2. AGENDA 1. ONLINE FRAUD 2. FRAUD DETECTION WITH AI 3. THE CHALLENGE IN THE FUTURE
  • 4. 1. ONLINE FRAUD Online fraud is quite popular because of the growth of online services.
  • 5. 1. ONLINE FRAUD Bad actors take advantage of various technologies to make profits and evade detection.
  • 6. 1. ONLINE FRAUD A typical Scenario of online fraud-User Acquisition Fraud which means fraudsters trick advertisers into spending money on fake users and fraudulent traffic.
  • 7. 1. ONLINE FRAUD A typical Scenario of online fraud-account takeover fraud, where a fraudsters takes over an account using an account holder’s online credential.
  • 8. 1. ONLINE FRAUD A typical Scenario of online fraud-spamming, which is the use of messaging systems to send an unsolicited message (spam), especially advertising, as well as sending messages repeatedly .
  • 10. THE TRADITIONAL METHODS TO COMBAT FRAUDSTERS:
  • 11. THE INFORMATION WE CAN USE: User activities are the best features which is hard to be mimicked by fraudsters.
  • 12. RTFDP This platform consists of three layers: Algorithms Learning Engine, RealTime Detection Engine, and Application Layer. We store all the historical activity information about a user, and judge whether the user is a bad actor whenever he/she generates a new activity. We credit every user with a score which is range 0 and 1, and the service provider can take measures to block the bad actor correspondingly.
  • 14. THE ALGORITHMS IN RTFDP: The Algorithms in RTDP include: LR, GS+Isolated Trees, FM, LPA, LSTM. We are now researching on using more AI algorithms to detect more Fraudsters, such as CNN+LSTM+CRF.
  • 15. SOLVED PROBLEMS: This system can solve these problems effectively. User Acquisition Fraud Marketing Campaign Fake App Install Account takeover Bad Bots Fake traffic
  • 16. WHAT WE FOUND IN OUR ONLINE SERVICES ARE: Bad Bots: 0.5% of the UV in an app are bad crawler bots. Fake APP Install: over 60% APP install from DSP is fake. Device info: fraudsters tend to use older devices because of low costs. Spam: 20% posts in our live streaming platform are fake. Location: most of bad actors in China are located in Guangdong province.
  • 17. 3. THE CHALLENGE IN THE FUTURE
  • 18. 3. THE CHALLENGE • Cyber attackers are constantly devising new techniques to evade security defenses. • They use the latest mobile hacker tools and cloud technology to impersonate legitimate users. They even begin to use AI to emulate real users’ activities. • Fraudsters have begun to use real users to cheat by offering online lucrative jobs. These users are real users, but they are not our targeted users. • Increasing data breaches make it easier for fraudsters to commit various frauds. With all compromised credentials and PII, bad actors can act as legitimate users.