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

Forensic intelligence framework. Part II: study of the main generic building blocks and challenges through the examples of illicit drugs and false identity documents monitoring

The development of forensic intelligence relies on the expression of suitable models that better represent the contribution of forensic intelligence in relation to the criminal justice system, policing and security. Such models assist in comparing and evaluating methods and new technologies, provide transparency and foster the development of new applications. Interestingly, strong similarities between two separate projects focusing on specific forensic science areas were recently observed. These observations have led to the induction of a general model (Part I) that could guide the use of any forensic science case data in an intelligence perspective. The present article builds upon this general approach by focusing on decisional and organisational issues. The article investigates the comparison process and evaluation system that lay at the heart of the forensic intelligence framework, advocating scientific decision criteria and a structured but flexible and dynamic architecture. These building blocks are crucial and clearly lay within the expertise of forensic scientists. However, it is only part of the problem. Forensic intelligence includes other blocks with their respective interactions, decision points and tensions (e.g. regarding how to guide detection and how to integrate forensic information with other information). Formalising these blocks identifies many questions and potential answers. Addressing these questions is essential for the progress of the discipline. Such a process requires clarifying the role and place of the forensic scientist within the whole process and their relationship to other stakeholders

Ubiquitous intelligence for smart cities: a public safety approach

Citizen-centered safety enhancement is an integral component of public safety and a top priority for decision makers in a smart city development. However, public safety agencies are constantly faced with the challenge of deterring crime. While most smart city initiatives have placed emphasis on the use of modern technology for fighting crime, this may not be sufficient to achieve a sustainable safe and smart city in a resource constrained environment, such as in Africa. In particular, crime series which is a set of crimes considered to have been committed by the same offender is currently less explored in developing nations and has great potential in helping to fight against crime and promoting safety in smart cities. This research focuses on detecting the situation of crime through data mining approaches that can be used to promote citizens' safety, and assist security agencies in knowledge-driven decision support, such as crime series identification. While much research has been conducted on crime hotspots, not enough has been done in the area of identifying crime series. This thesis presents a novel crime clustering model, CriClust, for crime series pattern (CSP) detection and mapping to derive useful knowledge from a crime dataset, drawing on sound scientific and mathematical principles, as well as assumptions from theories of environmental criminology. The analysis is augmented using a dual-threshold model, and pattern prevalence information is encoded in similarity graphs. Clusters are identified by finding highly-connected subgraphs using adaptive graph size and Monte-Carlo heuristics in the Karger-Stein mincut algorithm. We introduce two new interest measures: (i) Proportion Difference Evaluation (PDE), which reveals the propagation effect of a series and dominant series; and (ii) Pattern Space Enumeration (PSE), which reveals underlying strong correlations and defining features for a series. Our findings on experimental quasi-real data set, generated based on expert knowledge recommendation, reveal that identifying CSP and statistically interpretable patterns could contribute significantly to strengthening public safety service delivery in a smart city development. Evaluation was conducted to investigate: (i) the reliability of the model in identifying all inherent series in a crime dataset; (ii) the scalability of the model with varying crime records volume; and (iii) unique features of the model compared to competing baseline algorithms and related research. It was found that Monte Carlo technique and adaptive graph size mechanism for crime similarity clustering yield substantial improvement. The study also found that proportion estimation (PDE) and PSE of series clusters can provide valuable insight into crime deterrence strategies. Furthermore, visual enhancement of clusters using graphical approaches to organising information and presenting a unified viable view promotes a prompt identification of important areas demanding attention. Our model particularly attempts to preserve desirable and robust statistical properties. This research presents considerable empirical evidence that the proposed crime cluster (CriClust) model is promising and can assist in deriving useful crime pattern knowledge, contributing knowledge services for public safety authorities and intelligence gathering organisations in developing nations, thereby promoting a sustainable "safe and smart" city

Exploring Text Mining and Analytics for Applications in Public Security: An in-depth dive into a systematic literature review

Text mining and related analytics emerge as a technological approach to support human activities in extracting useful knowledge through texts in several formats. From a managerial point of view, it can help organizations in planning and decision-making processes, providing information that was not previously evident through textual materials produced internally or even externally. In this context, within the public/governmental scope, public security agencies are great beneficiaries of the tools associated with text mining, in several aspects, from applications in the criminal area to the collection of people's opinions and sentiments about the actions taken to promote their welfare. This article reports details of a systematic literature review focused on identifying the main areas of text mining application in public security, the most recurrent technological tools, and future research directions. The searches covered four major article bases (Scopus, Web of Science, IEEE Xplore, and ACM Digital Library), selecting 194 materials published between 2014 and the first half of 2021, among journals, conferences, and book chapters. There were several findings concerning the targets of the literature review, as presented in the results of this article

Cross channel fraud detection framework in financial services using recurrent neural networks

The reliability and performance of real time fraud detection techniques has been a major concern for the financial institutions as traditional fraud detection models couldn’t cope with the emerging new and innovative attacks that deceive banks. The problems are further exacerbated with evolving customer behaviour as existing fraud detection models unable to cope with class imbalance problem and longer feedback loop. This thesis looks at the holistic view of fraud detection and proposes a conceptual fraud detection framework that can detect anomalous transaction quickly and accurately, as well as dynamically evolve to maintain the efficiency with minimum input from subject matter expert. The framework is used to analyse Internet Banking (IB) transactions and contextual information to reduce the false positives and improve fraud detection rates. Based on the proposed framework, Long Short-Term Memory (LSTM) based Recurrent Neural Network model for detecting fraud in remote banking is implemented and performance is evaluated against Support Vector Machine (SVM) and Markov models. The main research element is to model events as state vectors so that sequence-based learning can be applied, followed by a weak classifier to deal with noise. Firstly, the study focuses on Feature Engineering where along raw attributes such as IP Address, Amount and other, two novel features for remote banking fraud are evaluated, i.e., the time spend on a page and the time between page transition. The second focus is on modelling which is performed on an anonymised real-life dataset, provided by a large financial institution in Europe. The results of the modelling demonstrate that given the labelled dataset all models can detect payment fraud with acceptable accuracy. Various tests proved that the LSTM model achieves a F1 score of 97.7% whereas the SVM and Markov model achieve 93.5% and 95.0% respectively. As the time elapsed, the LSTM model performance significantly improves as the sequence of events became larger. As the dataset increases that time it takes to train traditional models becomes a bottleneck. This proves the hypothesis that the events across banking channels can be modelled as time series data and then sequence-based learners such as Recurrent Neural Network (RNN) can be applied to improve or reduce the False Positive Rate (FPR) and False Negative Rate (FNR)