skip to main content
10.1145/1389095.1389408acmconferencesArticle/Chapter ViewAbstractPublication PagesgeccoConference Proceedingsconference-collections
research-article

Combatting financial fraud: a coevolutionary anomaly detection approach

Published:12 July 2008Publication History

ABSTRACT

A major difficulty for anomaly detection lies in discovering boundaries between normal and anomalous behavior, due to the deficiency of abnormal samples in the training phase. In this paper, a novel coevolutionary algorithm which attempts to simulate territory establishment in ecology is conceived to tackle anomaly detection problems. Two species in normal and abnormal behavior pattern space coevolve competitively and cooperatively. Competition prevents individuals in one species from invading the other's territory; cooperation aims to achieve complete pattern coverage by adjusting the evolutionary environment according to the pressure coming from neighbors. In a sense, we extend the definition of cooperative coevolution from "coupled fitness" to "interaction of the evolutionary environment". This coevolutionary algorithm, enhanced with features like niching inside of species, global and local fitness, and fuzzy sets, tries to balance overfitting and overgeneralization. This provides an accurate boundary definition. Experimental results on transactional data from a real financial institution show that this coevolutionary algorithm is more effective than the evolutionary algorithm in evolving normal or abnormal behavior patterns only.

References

  1. E. S. Adams. Territory size and shape in fire ants: a model based on neighborhood interactions. Ecology, 79(4):1125--1134, June 1998.]]Google ScholarGoogle ScholarCross RefCross Ref
  2. S. Balachandran, D. Dasgupta, F. Nino, and D. Garrett. A general framework for evolving multi-shaped detectors in negative selection. In IEEE Symposium Series on Computational Intelligence, Honolulu, Hawaii, April 2007.]]Google ScholarGoogle Scholar
  3. P. Collet, E. Lutton, and F. Raynal. Polar IFS + parisian genetic programming = e.cient IFS inverse problem solving. Genetic Programming and Evolvable Machines, 1:339--361, 2000.]] Google ScholarGoogle ScholarDigital LibraryDigital Library
  4. D. Dasgupta and F. Gonzalez. An immunity-based technique to characterize intrusions in computer networks. IEEE Transactions on Evolutionary Computation, 6(3):281--291, June 2002.]] Google ScholarGoogle ScholarDigital LibraryDigital Library
  5. E. Dunn, G. Olague, and E. Lutton. Automated photogrammetric network design using the parisian approach. In Applications on Evolutionary Computing, pages 356--365. Springer Berlin / Heidelberg, 2005.]] Google ScholarGoogle ScholarDigital LibraryDigital Library
  6. S. Forrest, B. Javornik, R. E. Smith, and A. S. Perelson. Using genetic algorithms to explore pattern recognition in the immune system. Evolutionary Computation, 1(3):191--211, 1993.]]Google ScholarGoogle ScholarDigital LibraryDigital Library
  7. S. Forrest, B. Javornik, R. E. Smith, and A. S. Perelson. Using genetic algorithms to explore pattern recognition in the immune system. Evolutionary Computation, 1(3):191--211, 1993.]]Google ScholarGoogle ScholarDigital LibraryDigital Library
  8. S. Forrest, B. Javornik, R. E. Smith, and A. S. Perelson. Using genetic algorithms to explore pattern recognition in the immune system. Evolutionary Computation, 1(3):191--211, 1993.]]Google ScholarGoogle ScholarDigital LibraryDigital Library
  9. F. Gonzalez, J. Gomez, M. Kaniganti, and D. Dasgupta. An evolutionary approach to generate fuzzy anomaly signatures. In Proceedings of the Fourth Annual IEEE Information Assurance Workshop, pages 251--259. West point, NY, 2003.]]Google ScholarGoogle ScholarCross RefCross Ref
  10. F. A. Gonzalez and D. Dasgupta. Anomaly detection using real-valued negative selection. Genetic Programming and Evolvable Machines, 4(4):383--403, December 2003.]] Google ScholarGoogle ScholarDigital LibraryDigital Library
  11. X. Hang and H. Dai. Applying both positive and negative selection to supervised learning for anomaly detection. In Genetic and Evolutionary Computation Conference (GECOO '05), 2005.]] Google ScholarGoogle ScholarDigital LibraryDigital Library
  12. S. A. Hofmeyr. An immunological model of distributed detection and its application to computer security. PhD thesis, The University of New Mexico, 1999.]] Google ScholarGoogle ScholarDigital LibraryDigital Library
  13. Z. Ji. A boundary-aware negative selection algorithm. In Proceedings of the 9th IASTED International Conference on Artificial Intelligence and Soft Computing (ASC 2005), Benidorm, Spain, 2005.]]Google ScholarGoogle Scholar
  14. Z. Ji and D. Dasgupta. Real-valued negative selection using variable-sized detectors. In Genetic and Evolutionary Computation Conference (GECCO '04), Seattle, Washington, 26-30 June 2004.]]Google ScholarGoogle Scholar
  15. Z. Ji and D. Dasgupta. Real-valued negative selection using variable-sized detectors. In Genetic and Evolutionary Computation Conference (GECCO '04), Seattle, Washington, 26-30 June 2004.]]Google ScholarGoogle Scholar
  16. J. Kim and P. J. Bentley. Evaluating negative selection in an artificial immune system for network intrusion detection. In Genetic and Evolutionary Computation Conference (GECCO '01), 2001.]]Google ScholarGoogle Scholar
  17. J. R. Krebs and N. B. Davies. An Introduction to Behavioural Ecology. Sinauer Associates Inc., 1981.]]Google ScholarGoogle Scholar
  18. M. Ostaszewski, F. Seredynski, and P. Bouvry. Immune anomaly detection enhanced with evolutionary paradigms. In Genetic And Evolutionary Computation Conference (GECCO '06), pages 119 -- 126, Seattle, WA., US, 8-12 July 2006.]] Google ScholarGoogle ScholarDigital LibraryDigital Library
  19. M. Ostaszewski, F. Seredynski, and P. Bouvry. Coevolutionary-based mechanisms for network anomaly detection. Journal of Mathematical Modelling and Algorithms, 6:411--431, 2007.]]Google ScholarGoogle ScholarCross RefCross Ref
  20. S. T. Powers and J. He. Evolving discrete-valued anomaly detectors for a network intrusion detection system using negative selection. In The 6th Annual Workshop on Computational Intelligence (UKCI '06), pages 41--48, 2006.]]Google ScholarGoogle Scholar
  21. J. M. Shapiro, G. B. Lamont, and G. L. Peterson. An evolutionary algorithm to generate hyper-ellipsoid detectors for negative selection. In Genetic and evolutionary computation Conference (GECCO '05), pages 337--344, Washington DC, USA, 2005.]] Google ScholarGoogle ScholarDigital LibraryDigital Library
  22. M. Toneguzzi. Theft, fraud cost retailers $8 million a day. Ottawa Citizen, March 2 2007. Newspaper.]]Google ScholarGoogle Scholar

Index Terms

  1. Combatting financial fraud: a coevolutionary anomaly detection approach

    Recommendations

    Comments

    Login options

    Check if you have access through your login credentials or your institution to get full access on this article.

    Sign in
    • Published in

      cover image ACM Conferences
      GECCO '08: Proceedings of the 10th annual conference on Genetic and evolutionary computation
      July 2008
      1814 pages
      ISBN:9781605581309
      DOI:10.1145/1389095
      • Conference Chair:
      • Conor Ryan,
      • Editor:
      • Maarten Keijzer

      Copyright © 2008 ACM

      Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

      Publisher

      Association for Computing Machinery

      New York, NY, United States

      Publication History

      • Published: 12 July 2008

      Permissions

      Request permissions about this article.

      Request Permissions

      Check for updates

      Qualifiers

      • research-article

      Acceptance Rates

      Overall Acceptance Rate1,669of4,410submissions,38%

      Upcoming Conference

      GECCO '24
      Genetic and Evolutionary Computation Conference
      July 14 - 18, 2024
      Melbourne , VIC , Australia

    PDF Format

    View or Download as a PDF file.

    PDF

    eReader

    View online with eReader.

    eReader