LongArms: Fraud Prediction in Online Lending Services Using Sparse Knowledge Graph
Cheng Wang, Hangyu Zhu, Ruixin Hu, Rui Li, Changjun Jiang · IEEE Transactions on Big Data · 2022
Gang fraud, the major and primary security issue in online lending services, can be efficiently solved by the data-driven paradigm that is recognized as a promising solution for online lending gang fraud prediction. However, it is challenging that such predictions need to detect evolving and increasingly impalpable fraud patterns based on low-quality data, i.e., very preliminary and coarse applicant information. The technical difficulty mainly stems from two factors: the extremedeficiency of information associationsandweakness of data labels. In this work, we mainly address the challenges by enhancing the utility of associations (i.e.,recovering missing associationsandmining underlying associations) on a knowledge graph. Specifically, we first propose an efficient method of Chinese address disambiguation to recover some critical associations that are broken by the ambiguity of applicant information, e.g., address related information. Then, to mine the implicit associations, we design a novel association representation method, calledAdaptive Connected Component Embedding Simplification Scheme(ACCESS), which can adaptively implement embedding for different connected components depending on their sizes. Finally, we adopt the graph clustering algorithms and devised predicting schemes based on the above enhanced associations to predict gang fraud in the case of weakness of data labels. Moreover, we propose a framework called RMCP by integrating the above techniques, which is consists of four steps:Recovering,Mining,Clustering, andPredicting, for efficiently predicting gang fraud. The good performance is validated by the experiments on a real-world dataset from a commercial lending company. Meanwhile, we provide a visual decision support system namedLongArmsover the RMCP framework.