Fraud Detection In Mobile Communications Networks Using User Profiling And Classification Techniques

Fraud detection is an important application, since network operators lose a relevant portion of their revenue to fraud. The intentions of mobile phone users cannot be well observed except through the call data. The call data is used in describing behavioural patterns of users. Neural networks and probabilistic models are employed in learning these usage patterns from call data by detecting changes in established usage patterns or to recognize typical usage patterns of fraud. The methods are shown to be effective in detecting fraudulent behaviour by empirically testing the methods with data from real mobile communications networks.Keywords: Call data, fraud detection, neural networks, probabilistic models, user profilin

User profiling and classification for fraud detection in mobile communications networks

The topic of this thesis is fraud detection in mobile communications networks by means of user profiling and classification techniques. The goal is to first identify relevant user groups based on call data and then to assign a user to a relevant group. Fraud may be defined as a dishonest or illegal use of services, with the intention to avoid service charges. Fraud detection is an important application, since network operators lose a relevant portion of their revenue to fraud. Whereas the intentions of the mobile phone users cannot be observed, it is assumed that the intentions are reflected in the call data. The call data is subsequently used in describing behavioral patterns of users. Neural networks and probabilistic models are employed in learning these usage patterns from call data. These models are used either to detect abrupt changes in established usage patterns or to recognize typical usage patterns of fraud. The methods are shown to be effective in detecting fraudulent behavior by empirically testing the methods with data from real mobile communications networks.reviewe

Credit Card Fraud Detection Using Logistic Regression and Synthetic Minority Oversampling Technique (SMOTE) Approach

Financial fraud is a serious threat that is expanding effects on the financial sector. The use of credit cards is growing as digitization and internet transactions advance daily. The most common issues in today\u27s culture are credit card scams. This kind of fraud typically happens when someone uses someone else\u27s credit card details. Credit card fraud detection uses transaction data attributes to identify credit card fraud, which can save significant financial losses and affluence the burden on the police. The detection of credit card fraud has three difficulties: uneven data, an abundance of unseen variables, and the selection of an appropriate threshold to improve the models\u27 reliability. This study employs a modified Logistic Regression (LR) model to detect credit card fraud in order to get over the preceding difficulties. The dataset sampling strategy, variable choice, and detection methods employed all have a significant impact on the effectiveness of fraud detection in credit card transactions. The effectiveness of naive bayes, k-nearest neighbour, and logistic regression on highly skewed credit card fraud data is examined in this research. The accuracy of the logistic regression technique will be closer to 0.98%; with this accuracy, frauds may be easily detected. The fact that LR receives the highest classifier score illustrates how well LR predicts credit card theft

CHORUS Deliverable 2.1: State of the Art on Multimedia Search Engines

Based on the information provided by European projects and national initiatives related to multimedia search as well as domains experts that participated in the CHORUS Think-thanks and workshops, this document reports on the state of the art related to multimedia content search from, a technical, and socio-economic perspective. The technical perspective includes an up to date view on content based indexing and retrieval technologies, multimedia search in the context of mobile devices and peer-to-peer networks, and an overview of current evaluation and benchmark inititiatives to measure the performance of multimedia search engines. From a socio-economic perspective we inventorize the impact and legal consequences of these technical advances and point out future directions of research

Changepoint model for Bayesian online fraud detection in call data

Illegal use in the phone network is a massive problem for both telecommunication companies and their users. By gaining criminal access to customers' telephone, fraudsters make an illicit pro t and cause heavy tra c in the call network. After rising trend in mobile phone fraud, telecommunication companies' security departments mainly focused on increasing the e ciency of fraud detection algorithms and decreasing the number of false alarms. In this thesis, we represent an online event-based fraud detection algorithm based on Hidden Markov Models (HMM). Detection problem is formulated as a changepoint model on caller's behavior. To capture call behavior more speci cally, we split it into three parts; call frequency, call duration and call features. We prefer to adapt changepoint model for call data because of its memoryless property; the data before the changepoint does not depend on the data after the change point. To investigate the performance of our algorithm, we conducted an extensive computational study on our generated data. Our results indicate that the algorithm is practical and resampling methods can control the di culty of linearly increasing computational cost

A Comprehensive Survey of Data Mining-based Fraud Detection Research

This survey paper categorises, compares, and summarises from almost all published technical and review articles in automated fraud detection within the last 10 years. It defines the professional fraudster, formalises the main types and subtypes of known fraud, and presents the nature of data evidence collected within affected industries. Within the business context of mining the data to achieve higher cost savings, this research presents methods and techniques together with their problems. Compared to all related reviews on fraud detection, this survey covers much more technical articles and is the only one, to the best of our knowledge, which proposes alternative data and solutions from related domains.Comment: 14 page

model checking for data anomaly detection

Abstract Data tipically evolve according to specific processes, with the consequent possibility to identify a profile of evolution: the values it may assume, the frequencies at which it changes, the temporal variation in relation to other data, or other constraints that are directly connected to the reference domain. A violation of these conditions could be the signal of different menaces that threat the system, as well as: attempts of a tampering or a cyber attack, a failure in the system operation, a bug in the applications which manage the life cycle of data. To detect such violations is not straightforward as processes could be unknown or hard to extract. In this paper we propose an approach to detect data anomalies. We represent data user behaviours in terms of labelled transition systems and through the model checking techniques we demonstrate the proposed modeling can be exploited to successfully detect data anomalies

Security and the smart city: A systematic review

The implementation of smart technology in cities is often hailed as the solution to many urban challenges such as transportation, waste management, and environmental protection. Issues of security and crime prevention, however, are in many cases neglected. Moreover, when researchers do introduce new smart security technologies, they rarely discuss their implementation or question how new smart city security might affect traditional policing and urban planning processes. This systematic review explores the recent literature concerned with new ‘smart city’ security technologies and aims to investigate to what extent these new interventions correspond with traditional functions of security interventions. Through an extensive literature search we compiled a list of security interventions for smart cities and suggest several changes to the conceptual status quo in the field. Ultimately, we propose three clear categories to categorise security interventions in smart cities: Those interventions that use new sensors but traditional actuators, those that seek to make old systems smart, and those that introduce entirely new functions. These themes are then discussed in detail and the importance of each group of interventions for the overall field of urban security and governance is assessed