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Abstract:
Neural computing refers to a pattern recognition methodology for machine learning. The resulting model from neural
computing is often called an artificial neural network (ANN) or a neural network. Neural networks have been used in many
business applications for pattern recognition, forecasting, prediction and classification. Neural network computing is a key
component for any data mining tool kit. Applications of neural network based data mining tools are abound in finance,
marketing, manufacturing, information systems and so on. This essay discusses in detail the role of artificial neural networks in
prevention of telecommunication fraud.
Keywords--- Artificial iintelligence, Artificial neural networks (ANNs), Coral systems, Data Mining, Expert System, Falcon
(Or Credit Card Issuers), Fraud Management Systems, Ghosting, Knowledge Base System, Rule Based System,
Telecommunication fraud, Thresholding Systems.
include ghosting (technology that tricks the infrastructure. The fraud techniques are
network in order to obtain free calls) and considered because basic ideas remain
insider fraud where telecommunication despite the underlying technology.
company employees sell information to Deceptions in telecommunications include
criminals that can be explained for subscription frauds where the cheater
fraudulent gain. accesses the services without being
subscribed. User can also suffer line or
4. METHODS OF identity theft being charged for services used
TELECOMMUNICATION FRAUD by others. Telecommunication operators can
There are two methods by which oversee users that exceed their download
telecommunication fraud can be quote and rate performing illegal service
implemented. They are discussed below in redistribution, sometimes for an economic
detail. profit. Finally cloning or unauthorized
4.1 Theft of communication Services: access to services may lead to compromising
The phone phreakers of 3 decades ago set a privacy.
precedent for what is becomes a major Anyway the most common types of fraud on
criminal industry (Wall D S, 2001, pp 30; telecommunications are subscription fraud
Broadhurst R G and Grabosky P N, 2005, pp and identity theft. After that voice mail fraud
32). The market for stolen communications and calling card fraud prevail. The analysis
services is now large. There are those who of different fraud techniques points out that
simply seek to avoid or to obtain a discount the tendency is a convergence of the fraud
on the cost of a telephone call whilst there which increases the complexity of its
are others such as illegal immigrants who detection. Fraud management systems have
are unable to acquire legitimate information proved to be a suitable tool to detect fraud in
services without disclosing their identity and different networks with diverse techniques
their status. such as self organizing maps (SOM),
4.2 Communications in Furtherance of general data mining, rule based systems
criminal conspiracies: profiling through Artificial intelligence
Just as legitimate organizations in the techniques like neural networks or decision
private and public sectors rely upon trees based on the hierarchical regime
information systems for communications switching models, Bayesian networks, fuzzy
and record keeping so too are the activities rules or other data mining techniques. There
of criminal organizations enhanced by also exist works on how to discover new
technology. rules to detect fraud in telecommunications
and on the privacy concerns of applying
detection techniques to user’s data.
and which stores all the domain and fraud largest telecom operator was losing over
specific knowledge that is required by the United States $37 million per year to fraud.
system (Filipe J and Obaidat M S, 2008, pp Subscription fraud in which a customer
112-113). The actual fraud detection either provides fraudulent details or gives
methods and techniques are stored in the valid details and then disappears was the
Semantic Rules Repository in the form of if- company’s biggest cause of revenue
then-else rules that reason over the leakage. By the time the telecom provider is
knowledge contained in the ontology alerted about the fraud, the fraudster has
repository. The two repositories are already moved to other target victims. Other
interrelated as the representation of rules types of fraud include phone card
depends on the contents of the ontology. manipulation which involves tampering and
cloning of phone cards. In a clip on fraud a
Finally the self learning system provides the fraudster clips on to customers telephone
overall system with the capability to learn lines and then sells calls to overseas
new rules about fraud from the submission destination for a fraction of normal rates.
of fraudulent and non fraudulent domain Minotaur, developed by Neural
specific data and to automatically detect Technologies was implemented to prevent
irregular observations in the data thus fraud. Minotaur uses a hybrid mixture of
providing a feedback mechanism for intelligent systems and traditional
enriching and updating the repository of computing techniques to provide customer
rules. The self learning system integrates subscription and real time call monitoring
suitable algorithms for statistical data fraud detection. It processes data from
analysis and data mining tasks that enable it numerous fields such as event data records
to update, optimize and extend existing (switch/CDR, SS#7, IPDRs,
fraud detection rules by analyzing submitted PIN/authentication) and customer data
data. (billing and payment, point of sale,
provisioning) using a multi-stream analysis
The fraud detection area is an active area of capacity. Frauds are detected on several
development for neural networks in levels such as on an individual basis using
telecommunications. Many of the most specific knowledge about the subscriber’s
successful systems are hybrid systems which usage and on a global basis using generic
takes advantage of the relative strengths of knowledge about subscriber usage and
several AI technologies. Given the payoffs known fraud patterns. The neural capability
involved it is an application which should of Minotaur means it learns from experience
come into routine use in the years ahead. making use of adaptive feedback to keep up