FCMH: Fast Cluster Multi-hop Model for Graph Fraud Detection

Rui Zhang, Wenbo Li, Xiaodong Ning, Dawei Cheng*, Li Han, Heguo Yang

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The issue of financial fraud is attracting increasing social attention. The task of Graph Fraud Detection (GFD) is a typical application of Graph Neural Networks (GNNs) in the e-commerce field. Although several successful works have already achieve excellent performance, there are still many obstacles before these methods can be used in financial market industry. Many of the GFD methods are based on spatial approaches, such as neighbor selection, which will slow down their execution on large datasets. This poses problems in e-commerce settings where real-time detection is essential. Also, fraudsters often disguise their behavior, resulting in high heterophily of the graph, which makes direct aggregation of neighbors less effective. To address these issues, we introduce the Fast Cluster Multi-Hop Detector (FCMH). This model first partitions the graph into different small subgraphs to accelerate the neighbor aggregation process. Then, it uses a multi-hop neighborhood aggregation strategy to simultaneously aggregate multiple layers of neighbors to learn fraudulent patterns. Our model has been evaluated on both the open source and industrial e-commerce datasets, and it has produced ideal results in terms of classification performance and time efficiency. We believe that our work will be beneficial for the applications of GFD models in financial fraud detection.

Original languageEnglish
Title of host publicationAdvanced Data Mining and Applications - 20th International Conference, ADMA 2024, Proceedings
EditorsQuan Z. Sheng, Xuyun Zhang, Jia Wu, Congbo Ma, Gill Dobbie, Jing Jiang, Wei Emma Zhang, Yannis Manolopoulos, Wathiq Mansoor
PublisherSpringer Science and Business Media Deutschland GmbH
Pages34-49
Number of pages16
ISBN (Print)9789819608201
DOIs
StatePublished - 2025
Event20th International Conference on Advanced Data Mining Applications, ADMA 2024 - Sydney, Australia
Duration: 3 Dec 20245 Dec 2024

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume15389 LNAI
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference20th International Conference on Advanced Data Mining Applications, ADMA 2024
Country/TerritoryAustralia
CitySydney
Period3/12/245/12/24

Keywords

  • Deep Learning
  • Graph Fraud Detection
  • Graph Neural Networks

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