Identifying Crypto Addresses with Gambling Behaviors: A Graph Neural Network Approach

The development of blockchain technology has brought prosperity to the cryptocurrency market and has made the blockchain platform a hotbed of crimes. As one of the most rampant crimes, crypto gambling has more high risk of illegal activities due to the lack of regulation. As a result, identifying crypto addresses with gambling behaviors has emerged as a significant research topic. In this work, we propose a novel detection approach based on Graph Neural Networks named CGDetector, consisting of Graph Construction, Subgraph Extractor, Statistical Feature Extraction, and Gambling Address Classification. Extensive experiments of large-scale and heterogeneous Ethereum transaction data are implemented to demonstrate that our proposed approach outperforms state-of-the-art address classifiers of traditional machine learning methods. This work makes the first attempt to detect suspicious crypto gambling addresses via Graph Neural Networks by all EVM-compatible blockchain systems, providing new insights into the field of cryptocurrency crime detection and blockchain security regulation

AI-powered Fraud Detection in Decentralized Finance: A Project Life Cycle Perspective

In recent years, blockchain technology has introduced decentralized finance (DeFi) as an alternative to traditional financial systems. DeFi aims to create a transparent and efficient financial ecosystem using smart contracts and emerging decentralized applications. However, the growing popularity of DeFi has made it a target for fraudulent activities, resulting in losses of billions of dollars due to various types of frauds. To address these issues, researchers have explored the potential of artificial intelligence (AI) approaches to detect such fraudulent activities. Yet, there is a lack of a systematic survey to organize and summarize those existing works and to identify the future research opportunities. In this survey, we provide a systematic taxonomy of various frauds in the DeFi ecosystem, categorized by the different stages of a DeFi project's life cycle: project development, introduction, growth, maturity, and decline. This taxonomy is based on our finding: many frauds have strong correlations in the stage of the DeFi project. According to the taxonomy, we review existing AI-powered detection methods, including statistical modeling, natural language processing and other machine learning techniques, etc. We find that fraud detection in different stages employs distinct types of methods and observe the commendable performance of tree-based and graph-related models in tackling fraud detection tasks. By analyzing the challenges and trends, we present the findings to provide proactive suggestion and guide future research in DeFi fraud detection. We believe that this survey is able to support researchers, practitioners, and regulators in establishing a secure and trustworthy DeFi ecosystem.Comment: 38 pages, update reference

Efficient Fraud Detection in Ethereum Blockchain through Machine Learning and Deep Learning Approaches

Background: This paper tackles the critical challenge of detecting fraudulent transactions within the Ethereum blockchain using machine learning techniques. With the burgeoning importance of blockchain, ensuring its security against fraudulent activities is crucial to prevent significant monetary losses. We utilized a public dataset comprising 9,841 Ethereum transactions, characterized by attributes such as gas price, transaction fee, and timestamp.Methods: Our approach is bifurcated into two core phases: data preprocessing and predictive modeling. In the data preprocessing phase, we meticulously process the dataset and extract pivotal features from transactions, setting the stage for efficient predictive modeling.Findings: For predictive modeling, we employed several machine learning algorithms to discern between fraudulent and legitimate transactions. Our evaluation encompassed algorithms like decision trees, logistic regression, gradient boosting, XGBoost, and an innovative hybrid model that melds random forests with deep neural networks (DNN).Novelty: Our findings underscore that the proposed model boasts a precision rate of 97.16%, marking a substantial leap in fraudulent transaction detection on the Ethereum blockchain in comparison to prevailing methodologies. This paper augments the current efforts aimed at bolstering the security of blockchain transactions using sophisticated analytical strategies.

Strengthening Smart Contracts: An AI-Driven Security Exploration

Smart contracts are automated agreements in which the conditions between the purchaser and the vendor are encoded directly into lines of code allowing them to execute automatically Smart contracts have emerged as a ground-breaking technology facilitating the decentralized and trustless execution of agreements on blockchain platforms However the widespread adoption of smart contracts exposes them to various security threats leading to substantial financial losses and reputational harm Artificial Intelligence has the capability to aid in the detection and reduction of vulnerabilities thereby enhancing the overall strength and resilience of smart contracts This integration can create highly secure and transparent systems that reduce the risk of fraud corruption and other malicious activities thereby increasing trust and confidence in these systems and improving overall security This research paper delves into the innovative applications of Artificial Intelligence techniques to enhance the security of smart contracts Investigating the potential of AI in detecting vulnerabilities identifying potential attacks and offering automated solutions for safer smart contracts will significantly contribute to the development and flawless execution of this emerging technolog

Robustness of Image-Based Malware Analysis

In previous work, “gist descriptor” features extracted from images have been used in malware classification problems and have shown promising results. In this research, we determine whether gist descriptors are robust with respect to malware obfuscation techniques, as compared to Convolutional Neural Networks (CNN) trained directly on malware images. Using the Python Image Library (PIL), we create images from malware executables and from malware that we obfuscate. We conduct experiments to compare classifying these images with a CNN as opposed to extracting the gist descriptor features from these images to use in classification. For the gist descriptors, we consider a variety of classification algorithms including k-nearest neighbors, random forest, support vector machine, and multi-layer perceptron. We find that gist descriptors are more robust than CNNs, with respect to the obfuscation techniques that we consider

Twitter Bots’ Detection with Benford’s Law and Machine Learning

Online Social Networks (OSNs) have grown exponentially in terms of active users and have now become an influential factor in the formation of public opinions. For this reason, the use of bots and botnets for spreading misinformation on OSNs has become a widespread concern. Identifying bots and botnets on Twitter can require complex statistical methods to score a profile based on multiple features. Benford’s Law, or the Law of Anomalous Numbers, states that, in any naturally occurring sequence of numbers, the First Significant Leading Digit (FSLD) frequency follows a particular pattern such that they are unevenly distributed and reducing. This principle can be applied to the first-degree egocentric network of a Twitter profile to assess its conformity to such law and, thus, classify it as a bot profile or normal profile. This paper focuses on leveraging Benford’s Law in combination with various Machine Learning (ML) classifiers to identify bot profiles on Twitter. In addition, a comparison with other statistical methods is produced to confirm our classification results

A Blockchain-Based Retribution Mechanism for Collaborative Intrusion Detection

Collaborative intrusion detection approach uses the shared detection signature between the collaborative participants to facilitate coordinated defense. In the context of collaborative intrusion detection system (CIDS), however, there is no research focusing on the efficiency of the shared detection signature. The inefficient detection signature costs not only the IDS resource but also the process of the peer-to-peer (P2P) network. In this paper, we therefore propose a blockchain-based retribution mechanism, which aims to incentivize the participants to contribute to verifying the efficiency of the detection signature in terms of certain distributed consensus. We implement a prototype using Ethereum blockchain, which instantiates a token-based retribution mechanism and a smart contract-enabled voting-based distributed consensus. We conduct a number of experiments built on the prototype, and the experimental results demonstrate the effectiveness of the proposed approach