Webinar: Stop Complex Fraud in its Tracks with Neo4j
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The document discusses the challenges posed by modern fraudsters and presents Neo4j as a solution to detect and prevent various types of fraud, including credit card fraud and fraud rings. It highlights the limitations of traditional fraud detection methods and emphasizes the advantages of utilizing graph databases for real-time analysis and alerts. The presentation also covers the architecture of Neo4j and its application in various financial contexts for effective fraud mitigation.
Webinar: Stop Complex Fraud in its Tracks with Neo4j
- 1. Stop Complex Fraud in its Tracks with Neo4j Neo4j Webinar, March 29, 2017
- 2. Ryan Boyd Developer Relations @ Neo4j Nav Mathur Sr. Director Global Solutions @ Neo4j Alessandro Svensson Solutions Marketing @ Neo4j
- 3. Agenda • Who are Today’s Fraudsters • How to Fight Fraud Rings with Graphs • Different Types of Credit Card Fraud & Neo4j Demo • How Neo4j Fits in a Typical Architecture • Summary • Q&A
- 4. Who Are Today’s Fraudsters?
- 5. Organized in groups Synthetic Identities Stolen Identities Hijacked Devices Who Are Today’s Fraudsters?
- 6. Types of Fraud • Credit Card Fraud • Rogue Merchants • Fraud Rings • Insurance Fraud • eCommerce Fraud • Fraud we don’t know about yet…
- 7. Digitized and Analog World of Fraud Constantly Evolving Few and Many Players “One Step Ahead” Simple and Complex
- 8. Fraud Detection (From a data-modeling perspective)
- 9. Raw Data
- 10. Anomalies
- 11. Anomalies hidden in “normal behavior”
- 12. Patterns
- 13. Patterns
- 14. 1) Detect 2) Respond Fraud Prevention is About Reacting to Patterns (And doing it fast!)
- 16. Data Modelled as a Graph! Graph Database
- 17. Examples of Prevalent Fraud Types
- 19. Fraud Rings
- 20. “Don’t consider traditional technology adequate to keep up with criminal trends” Market Guide for Online Fraud Detection, April 27, 2015
- 21. Endpoint-Centric Analysis of users and their end-points 1. Navigation Centric Analysis of navigation behavior and suspect patterns 2. Account-Centric Analysis of anomaly behavior by channel 3. PC:s Mobile Phones IP-addresses User ID:s Comparing Transaction Identity Vetting Traditional Fraud Detection Methods
- 22. Unable to detect • Fraud rings • Fake IP-adresses • Hijacked devices • Synthetic Identities • Stolen Identities • And more… Weaknesses DISCRETE ANALYSIS Endpoint-Centric Analysis of users and their end-points 1. Navigation Centric Analysis of navigation behavior and suspect patterns 2. Account-Centric Analysis of anomaly behavior by channel 3. Traditional Fraud Detection Methods
- 23. INVESTIGATE Revolving Debt Number of Accounts INVESTIGATE Normal behavior Fraud Detection with Discrete Analysis
- 24. Revolving Debt Number of Accounts Normal behavior Fraudulent pattern Fraud Detection with Connected Analysis
- 25. CONNECTED ANALYSIS Endpoint-Centric Analysis of users and their end-points Navigation Centric Analysis of navigation behavior and suspect patterns Account-Centric Analysis of anomaly behavior by channel DISCRETE ANALYSIS 1. 2. 3. Cross Channel Analysis of anomaly behavior correlated across channels 4. Entity Linking Analysis of relationships to detect organized crime and collusion 5. Augmented Fraud Detection
- 26. ACCOUNT HOLDER 2 Modeling a fraud ring as a graph ACCOUNT HOLDER 1 ACCOUNT HOLDER 3
- 27. ACCOUNT HOLDER 2 ACCOUNT HOLDER 1 ACCOUNT HOLDER 3 CREDIT CARD BANK ACCOUNT BANK ACCOUNT BANK ACCOUNT PHONE NUMBER UNSECURED LOAN SSN 2 UNSECURED LOAN Modeling a fraud ring as a graph
- 28. ACCOUNT HOLDER 2 ACCOUNT HOLDER 1 ACCOUNT HOLDER 3 CREDIT CARD BANK ACCOUNT BANK ACCOUNT BANK ACCOUNT ADDRESS PHONE NUMBER PHONE NUMBER SSN 2 UNSECURED LOAN SSN 2 UNSECURED LOAN Modeling a fraud ring as a graph
- 30. Ryan Boyd Developer Relations @ Neo4j Nav Mathur Sr. Director Global Solutions @ Neo4j
- 31. Example #1 “Credit Card Testing”
- 32. Manual skimming of an ATM Sophisticated Data Breaches Retrieval of Credit Card Information Rogue Merchant
- 33. USE ISSUES Terminal ATM- skimming Data Breach Card Holder Card Issuer Fraudster USE $5MAKES $10 MAKES $2 MAKES MAKES $4000 AT Testing Merchants ATMAKES Tx
- 34. Example #2 “Fraud Origination and Assessing Loss Magnitude”
- 35. TxTx Tx TxTx Tx Tx TxTxTx TxJohn
- 36. Tx $2000 TxTx Tx Tx TxTxTxTx Tx Tx Computer Store John
- 37. Tx $2000 Tx Tx $25$10$4 TxTx Tx Tx TxTxTx Computer Store John Gas Station
- 38. Tx Tx $2000 Tx Tx $25$10$4 TxTx Tx Tx TxTxTx Computer Store John Gas Station Sheila Tx $2 TxTxSheila TxTxTx Tx Tx TxTx $3000 Tx Jewelry StoreTx $3
- 39. Tx Tx $2000 Tx Tx $25$10$4 TxTx Tx Tx TxTxTx Computer Store John Gas Station Sheila Tx $2 TxTxSheila TxTxTx Tx Tx TxTx $3000 Tx Jewelry StoreTx $3 Robert TxTxTx Tx TxTx TxTxTx Tx Tx
- 40. TxTx $2 TxTx Tx $2000 Tx Tx $25$10$4 TxTx Tx Tx TxTxTx Computer Store John Gas Station Sheila Robert $3 Karen TxTxTx Tx Tx TxTx $3000 Tx Jewelry StoreTx $3 TxTxTx Tx Tx TxTx TxTx TxTx TxTx Tx Tx TxTx $8 $12 Tx $1500 Furniture Store Tx Tx Tx
- 41. How Neo4j fits in
- 42. Money Transferring Purchases Bank Services Relational database Develop Patterns Data Science-team + Good for Discrete Analysis – No Holistic View of Data-Relationships – Slow query speed for connections
- 43. Money Transferring Purchases Bank Services Relational database Data Lake + Good for Map Reduce + Good for Analytical Workloads – No holistic view – Non-operational workloads – Weeks-to-months processes Develop Patterns Data Science-team Merchant Data Credit Score Data Other 3rd Party Data
- 44. Money Transferring Purchases Bank Services Neo4j powers 360° view of transactions in real-time Neo4j Cluster SENSE Transaction stream RESPOND Alerts & notification LOAD RELEVANT DATA Relational database Data Lake Visualization UI Fine Tune Patterns Develop Patterns Data Science-team Merchant Data Credit Score Data Other 3rd Party Data
- 45. Money Transferring Purchases Bank Services Neo4j powers 360° view of transactions in real-time Neo4j Cluster SENSE Transaction stream RESPOND Alerts & notification LOAD RELEVANT DATA Relational database Data Lake Visualization UI Fine Tune Patterns Develop Patterns Data Science-team Merchant Data Credit Score Data Other 3rd Party Data Data-set used to explore new insights
- 46. Summary
- 47. We talked about… Today’s Fraudsters Examples of different types of Fraud: Fraud Rings Credit Card Testing Fraud Origination How Neo4j Fits in an Architecture
- 48. Detect & prevent fraud in real-time Faster credit risk analysis and transactions Reduce chargebacks Quickly adapt to new methods of fraud Why Neo4j? Who’s using it? Financial institutions use Neo4j to: FINANCE Government Online Retail
- 49. Valuable Resources! neo4jsandbox.com https://neo4j.com/use-cases/fraud-detection/ neo4j.com/product Sandbox Fraud Detection Product
- 50. Q&A