Visualization for Fraud Detection
Data visualization is being used for detecting fraud, especially with respect to wire and credit card transactions. Work done at the Charlotte Visualization Center at UNC Charlotte provides some interesting insights into fraud detection. This work was conducted in collaboration with the Bank of America.In the following paper they highlight four visualization techniques that allow for fraud detection.
Scalable and Interactive Visual Analysis of Financial Wire Transactions for Fraud Detection, Remco Chang, Alvin Lee, Mohammad Ghoniem, Robert Kosara, William Ribarsky, Jing Yang, Evan Suma, Caroline Ziemkiewicz, Daniel Kern, Agus Sudjianto, Journal of Information Visualization (IVS).
Search by example: Find accounts with transactions/activity similar to the current account being monitored.
Strings and beads: A line graph based visualization that shows critical events as ‘beads’ on the graph. The use of a log scale for the y-axis is a neat idea and probably allows for improved exploration.
Keyword graph: A graph visualization showing keyword similarity This paper was based on previous work done by the same group titled Wirevis. I would encourage interested readers in reading the original paper as well as the previous paper (Wirevis).
- It is a web-based solution that allows interactive exploration of data for fraud detection.
- Can read a wide variety of file formats (excel/access databases).
- Allows interaction with visualizations such as node-link diagrams, bar charts etc.
You can check out a 10-min video on their website at http://www.centrifugesystems.com/shadowbox/libraries/mediaplayer/Centrifuge-1.8-for-Banking-Fraud-Analysis.flv. As per the company website, it has been used to detect fraud in Bulgaria called the “Bulgarian Money Mule ring”. Seems like a step in the right direction. It would be interesting to see, if they could save and share workspaces for collaborative exploration of data. With their web-based framework, it would make it particularly interesting for investigators located at different locations to immediately access and interact with the current state of the visualization.
Any other companies, products, research papers that you may have heard of that I missed?