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The use of cryptocurrencies has led to an increase in illicit activities such as money laundering, with traditional rule-based approaches becoming less effective in detecting and preventing such activities. In this paper, we propose a novel…

Machine Learning · Computer Science 2024-10-10 Hrushyang Adloori , Vaishnavi Dasanapu , Abhijith Chandra Mergu

The rise in the adoption of blockchain technology has led to increased illegal activities by cyber-criminals costing billions of dollars. Many machine learning algorithms are applied to detect such illegal behavior. These algorithms are…

Cryptography and Security · Computer Science 2021-06-28 Rohit Kumar Sachan , Rachit Agarwal , Sandeep Kumar Shukla

The advent of blockchain technology has facilitated the widespread adoption of smart contracts in the financial sector. However, current fraud detection methodologies exhibit limitations in capturing both global structural patterns within…

Cryptography and Security · Computer Science 2025-01-07 Zhang Sheng , Liangliang Song , Yanbin Wang

The first six months of 2018 saw cryptocurrency thefts of $761 million, and the technology is also the latest and greatest tool for money laundering. This increase in crime has caused both researchers and law enforcement to look for ways to…

Computers and Society · Computer Science 2020-03-16 Mansoor Ahmed-Rengers , Ilia Shumailov , Ross Anderson

The rise of digital payments has caused consequential changes in the financial crime landscape. As a result, traditional fraud detection approaches such as rule-based systems have largely become ineffective. AI and machine learning…

Cryptography and Security · Computer Science 2021-03-05 E. Kurshan , H. Shen

Frauds severely hurt many kinds of Internet businesses. Group-based fraud detection is a popular methodology to catch fraudsters who unavoidably exhibit synchronized behaviors. We combine both graph-based features (e.g. cluster density) and…

Cryptography and Security · Computer Science 2018-06-26 Yikun Ban , Xin Liu , Tianyi Zhang , Ling Huang , Yitao Duan , Xue Liu , Wei Xu

Financial fraud cases are on the rise even with the current technological advancements. Due to the lack of inter-organization synergy and because of privacy concerns, authentic financial transaction data is rarely available. On the other…

Recently, blockchain technology has become a topic in the spotlight but also a hotbed of various cybercrimes. Among them, phishing scams on blockchain have been found making a notable amount of money, thus emerging as a serious threat to…

Social and Information Networks · Computer Science 2021-01-01 Jiajing Wu , Qi Yuan , Dan Lin , Wei You , Weili Chen , Chuan Chen , Zibin Zheng

Benford's law is frequently used to evaluate the likihood that data is misrepresentative. Typically statistical tests measure the likihood. Another method of employing Benford's law is to compare the frequency of leading digits to the…

Statistics Theory · Mathematics 2013-01-28 Aaron Carl Smith

Money laundering is a global phenomenon with wide-reaching social and economic consequences. Cryptocurrencies are particularly susceptible due to the lack of control by authorities and their anonymity. Thus, it is important to develop new…

Machine Learning · Computer Science 2021-07-22 Catarina Oliveira , João Torres , Maria Inês Silva , David Aparício , João Tiago Ascensão , Pedro Bizarro

Recently we could see several institutions coming together to create consortium based blockchain networks such as Hyperledger. Although for applications of blockchain such as Bitcoin, Litcoin, etc. the majority-attack might not be a great…

Cryptography and Security · Computer Science 2018-06-15 Somdip Dey

In recent years, the unprecedented growth in digital payments fueled consequential changes in fraud and financial crimes. In this new landscape, traditional fraud detection approaches such as rule-based engines have largely become…

Machine Learning · Computer Science 2021-03-03 E. Kurshan , H. Shen , H. Yu

Rapid and massive adoption of mobile/ online payment services has brought new challenges to the service providers as well as regulators in safeguarding the proper uses such services/ systems. In this paper, we leverage recent advances in…

Social and Information Networks · Computer Science 2019-06-14 Da Sun Handason Tam , Wing Cheong Lau , Bin Hu , Qiu Fang Ying , Dah Ming Chiu , Hong Liu

The dramatic adoption of Bitcoin and other cryptocurrencies in the USA has revolutionized the financial landscape and provided unprecedented investment and transaction efficiency opportunities. The prime objective of this research project…

Fraud detection problems are usually formulated as a machine learning problem on a graph. Recently, Graph Neural Networks (GNNs) have shown solid performance on fraud detection. The successes of most previous methods heavily rely on rich…

Machine Learning · Computer Science 2021-10-05 Chen Wang , Yingtong Dou , Min Chen , Jia Chen , Zhiwei Liu , Philip S. Yu

Cryptocurrencies are rapidly expanding and becoming vital in digital financial markets. However, the rise in cryptocurrency-related illicit activities has led to significant losses for users. To protect the security of these platforms, it…

Machine Learning · Computer Science 2024-07-19 Zhihao Ding , Jieming Shi , Qing Li , Jiannong Cao

Benford's law states that in data sets from different phenomena leading digits tend to be distributed logarithmically such that the numbers beginning with smaller digits occur more often than those with larger ones. Particularly, the law is…

Physics and Society · Physics 2016-01-12 Tariq Ahmad Mir

Bitcoin is by far the most popular crypto-currency solution enabling peer-to-peer payments. Despite some studies highlighting the network does not provide full anonymity, it is still being heavily used for a wide variety of dubious…

Social and Information Networks · Computer Science 2019-12-30 Yining Hu , Suranga Seneviratne , Kanchana Thilakarathna , Kensuke Fukuda , Aruna Seneviratne

The value of a social network is generally determined by its size and the connectivity of its nodes. But since some of the nodes may be fake ones and others that are dormant, the question of validating the node counts by statistical tests…

Social and Information Networks · Computer Science 2015-06-11 Sieteng Soh , Gongqi Lin , Subhash Kak

This paper provides an overview of how crypto currency and blockchain engineering interacts with the law enforcement. We point out that a large proportion of crypto users are amateur investors and the dominant and the largest segment in…

Cryptography and Security · Computer Science 2021-09-03 Nicolas T. Courtois , Kacper T. Gradon , Klaus Schmeh