More and more companies are using graph databases to solve a variety of data problems connected to the data network, including fraud detection. The most common use cases include operations, but companies in key sectors also use the graph database to handle a wide range of use cases – including finance, insurance, financial services, healthcare, education, healthcare, and more. [Sources: 1, 9, 14]
It can support more than just simple reports that require interconnected data, but it can also support more complex fraud cases such as identity theft and identity fraud. In addition to making it more difficult to exploit deceptive tactics, graph databases also offer a way to support existing methods of detecting fraud. Graph databases can provide insights based on data relationships and help create advanced fraud systems – detection systems based on networked intelligence. [Sources: 4, 11, 14]
For example, financial institutions are strengthening their ability to visualise, analyse and detect patterns that indicate potential fraud with charts. Diagram databases are a powerful tool to unmask a variety of fraud patterns and enable banks and financial institutions to conduct their business quickly. By allowing users to quickly and easily identify patterns, graph databases have potential applications in a range of industries, including fraud detection. [Sources: 2, 4, 8]
For example, one of the leading US multinational investment banks, Goldman Sachs, has used advanced graph analysis to improve its fraud detection capabilities. TigerGraph was chosen by them to improve their fraud analysis capabilities and the world’s largest payment card provider has also chosen TigerGraph as part of its investment strategy. [Sources: 0, 8]
To calculate and explain the reasons for personalized fraud detection recommendations, the graph database needs a powerful query language that can traverse all connections in a graph and supports a wide range of data types, such as real-time and stored evidence. GraphGrid enables fast analysis of the data connection by integrating the ETL computing framework required for analyzing data from any source connected to Neo4j graphs. Neo 4js native graph processing engine is supported in TigerGraph to enable real-time fraud detection. [Sources: 10, 11, 16]
Even with modern graph databases, the time and complexity of these methods is much higher than with traditional data processing methods such as SQL or SQLite. Modern graph databases such as Memgraph are a good example of real-time fraud detection, which should therefore be able to provide a high level of accuracy and high-quality data analysis and analysis. [Sources: 12, 15]
To understand how useful supplementing a graph database can be in detecting fraud, it is best to first understand Gartner’s multi-layered approach to fraud detection. While current fraud detection systems address the first three basic layers, graph databases allow organizations to unlock three of the remaining four layers to build next-generation fraud detection systems. [Sources: 2, 15]
Amazon Neptune is designed to make it easier for companies to develop and operate applications on highly connected data sets. Graph databases provide flexible and intuitive data models that are ideal for creating personalized recommendations, building predictive analytics, data visualization, and data analysis applications. The challenges of networking data include the use of graph databases in the fields of data science, analytics and analytics. Applications created with Neo4j take a relationship-first approach and can be used as a foundation for building applications such as fraud detection systems, business intelligence, customer service, fraud prevention and monitoring, and data analysis. [Sources: 3, 6, 13]
In the UK, for example, insurance fraud attracts sophisticated criminal rings, often able to evade fraud detection measures, and once again graphene databases can be a powerful tool for combating collusion. Chart databases offer speed and the ability to detect large patterns, making them ideal for combating this type of multi-party fraud. In the US, they can not only make model findings, but can also be useful in detecting large-scale fraud such as money laundering and money laundering. Insurance fraud has attracted sophisticated criminals and rings, who are likely to evade fraud detection measures and are often able to evade fraud prevention and surveillance measures. Once again, graphics databases are powerful tools in the fight against collective fraud and can be a valuable tool in combating this type of multi-party fraud and fraud prevention. [Sources: 2, 5, 7]
Moreover, the use of appropriate entities – linked analytical queries to graph databases, supported by the ability to run them on a wide range of records – can help banks identify potential fraud rings before engaging in fraudulent activity. A graph database allows banks to see their data in graphs and visualise data more easily enough to predict when and where fraud may occur and to predict fraud prevention measures. Networked data views in a graphics database can detect large, complex patterns and make fraud prevention more difficult, and detect larger and complex patterns faster, which can make fraud prevention more difficult. [Sources: 2, 4]
By combining the unique capabilities of graph databases with existing rules-based approaches, the introduction of a holistic approach to fraud prevention can have the potential to dramatically improve the efficiency and effectiveness of fraud detection and prevention in the banking sector. Graph Databases are able to stop advanced fraud scenarios in real time and provide the ability to detect fraud rings and other sophisticated scams with high accuracy. [Sources: 7, 15]
Sources:
(0): https://www.rtinsights.com/how-the-worlds-largest-banks-use-advanced-graph-analytics-to-fight-fraud/
(1): https://memgraph.com/blog/why-your-business-should-use-a-graph-database
(3): https://datadaytexas.com/graph-day-at-data-day-texas
(4): https://www.financedigest.com/the-clues-to-detecting-fraud-are-hidden-in-relationships.html
(7): https://blogs.sap.com/2016/06/20/sap-hana-database-as-a-graph-store-introduction/
(9): https://thenewstack.io/how-graph-databases-uncover-patterns-to-break-up-organized-crime/
(10): https://www.kdnuggets.com/2019/04/machine-learning-graph-analytics.html
(11): https://www.graphgrid.com/graph-advantage-fraud-detection/
(12): https://towardsdatascience.com/graphs-analytics-for-fraud-detection-83ee3af81ec7
(14): https://silo.tips/download/res121473
(15): https://dzone.com/articles/fighting-cyber-fraud-with-real-time-graph-analytic
(16): https://www.larus-ba.it/2020/04/16/insurance-fraud-detection-with-neo4j/