Collaborative Fraud Detection: How Collaboration Impacts Fraud Detection

Jinzhang Hu, Ruimin Hu, Zheng Wang, Dengshi Li, Junhang Wu, Lingfei Ren, Yilong Zang, Zijun Huang, Mei Wang

Abstract: Collaborative fraud has become increasingly serious in telecom and social networks, but is hard to detect by traditional fraud detection methods. In this paper, we find a significant positive correlation between the increase of collaborative fraud and the degraded detection performance of traditional techniques, implying that those fraudsters that are difficult to detect with traditional methods are often collaborative in their fraudulent behavior. As we know, multiple objects may contact a single target object over a period of time. We define multiple objects with the same contact target as generalized objects, and their social behaviors can be combined and processed as the social behaviors of one object. We propose Fraud Detection Model based on Second-order and Collaborative Relationship Mining (COFD), exploring new research avenues for collaborative fraud detection. Our code and data are released at https://github.com/CatScarf/COFD-MM https://github.com/CatScarf/COFD-MM.