Network Graph Analytics: Unveiling Fraud with Enhanced Precision

Explore how Network Graph Analytics leverages graph databases for precise, real-time fraud detection, assigning personalized risk scores to safeguard your business or financial institution.
Duy Bui

Duy Bui

August 15, 2023

Introduction

As fraud continues to evolve and challenge businesses across industries, our company recognized the pressing need for a cutting-edge solution to combat this menace effectively. Hence, we developed Network Graph Analytics, which harnesses the potential of advanced graph analytics to identify complex patterns, enabling our team to detect and prevent fraudulent activities with unmatched accuracy.

A Simple Explanation of Graph Networks

A graph network is a graph-based data structure that detects fraudulent activities in a given system. This network consists of nodes and edges, where the nodes represent entities such as users, accounts, or transactions, and the edges represent the relationships between them. By analyzing the patterns of these relationships, the network can identify suspicious activities that might indicate fraud.

One of the key advantages of a fraud graph network is its ability to detect complex fraud schemes that involve multiple entities and transactions. For example, a fraudster might use various accounts to make a series of transactions that appear legitimate but are part of a larger scheme to defraud the system. By analyzing the relationships between these accounts and transactions, a fraud graph network can detect the overall pattern of fraud and alert the system’s operators to take action. A fraud graph network is a powerful tool for detecting and preventing fraud in various applications and industries.

Why Use A Graph Network to Detect Fraud?

Utilizing a graph network for fraud detection offers advantages over traditional relational databases, particularly in handling vast interconnections. While relational databases excel in managing and analyzing tabular data, they stumble when storing and querying relationships among billions of interconnected entities. This requires exploring and visualizing connections and groups within the data, a process that can be highly complex and inefficient with a relational database. Executing queries on extensive relationships through SQL often results in multiple intricate joins, leading to poor performance and sluggish responses.

In contrast, graph databases are specifically engineered to handle and explore relationships. They’re built around connections, allowing for more straightforward, quicker, and more reliable queries for patterns and relationships within the data. Graph databases recognize relationships as integral components, boasting flexible schema and superior performance when traversing graph queries. This specialization enables graph databases to excel at sophisticated fraud detection and prevention, allowing for real-time modeling of relationships between individuals, locations, and financial transactions. Furthermore, they facilitate discovering subtle connections that might otherwise go unnoticed. This enhanced efficiency and insight make graph databases preferable for complex tasks like fraud detection.

Graph Analytics

Our Network Graph Analytics feature analyzes vast amounts of interconnected data points and relationships within the system. Leveraging graph theory, it uncovers hidden patterns, associations, and clusters that traditional methods might miss. This capability is paramount, considering the increasing sophistication of fraudsters who exploit intricate networks to evade detection.

Graph Analytics is a game-changer in fraud detection, transforming how we interpret and analyze data. Instead of relying solely on isolated data points, we can now visualize and comprehend the connections between entities, allowing us to identify obvious and subtle fraudulent schemes. This deep understanding of relationships empowers our team to take action and prevent financial losses and reputational damage proactively.

Risk Score Per PII

The Risk Score Per Personally Identifiable Information (PII) is vital to our Network Graph Analytics. This feature computes a personalized risk score for each customer based on their PII attributes and interactions with the system. By assigning a unique score to each entity, we gain unparalleled precision in fraud identification.

Traditional fraud detection methods often overlook the significance of individual attributes in a customer’s overall risk profile. With Risk Score Per PII, we can now gauge the potential risk associated with each customer accurately. This enables us to apply targeted measures to high-risk individuals, balancing security and seamless user experience.

Effectiv Graph Network Analytics Solution

Our Network Graph Analytics solution is designed to be user-friendly and robust. We have incorporated state-of-the-art algorithms and data visualization techniques to ensure fraud reviewers can easily interpret the results and make informed decisions.

Having a user-friendly analytics solution is paramount, especially in fast-paced risk environments. The effectiveness of our Network Graph Analytics lies not just in its advanced capabilities but in how it empowers fraud investigator teams to navigate and comprehend complex fraud patterns efficiently.

Network Graph

Application of Risk Score Per PII

In the context of Workflows and Case Management, our Network Graph Analytics feature seamlessly integrates with existing systems. It provides real-time risk scores for customers during various interactions, streamlining the decision-making process for fraud investigator teams.

We enable swift and well-informed actions by incorporating Risk Score Per PII in Workflows and Case Management. Fraud and risk professionals can efficiently prioritize cases based on risk levels, optimize resource allocation, and implement targeted mitigation strategies.

What’s next?

The power of graph analytics enables us to unearth complex fraud schemes, protect our business, and safeguard our customers. Together, these features fortify our commitment to providing a secure and trustworthy environment for our clients, ensuring sustained growth and success in the face of evolving threats.

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