{"id":459537,"date":"2023-09-28T09:30:00","date_gmt":"2023-09-28T07:30:00","guid":{"rendered":"https:\/\/innovationorigins.com\/?p=459537"},"modified":"2023-09-28T09:30:00","modified_gmt":"2023-09-28T07:30:00","slug":"this-software-busts-money-launderers-in-less-than-a-second","status":"publish","type":"post","link":"https:\/\/ioplus.nl\/archive\/en\/this-software-busts-money-launderers-in-less-than-a-second\/","title":{"rendered":"This software catches money launderers in less than a second"},"content":{"rendered":"\n<p>Computer scientists at King&#8217;s College London have developed a <a href=\"https:\/\/www.kcl.ac.uk\/news\/new-software-detects-money-laundering-faster-than-ever-before\">new tool<\/a> that enables quicker and more accurate detection of money laundering, which can scan 50 million transactions in less than a second.<\/p>\n\n\n\n<div class=\"io-block io-block__summary\"><ul><li>A new software detects money laundering three times faster than conventional methods. <\/li><li>The algorithms identify when criminals divide money into multiple small transactions. <\/li><li>The software was tested with real data from a bank and could recognize suspicious patterns. <\/li><\/ul><\/div>\n\n\n\n<p>The researchers have designed an entirely novel approach to detecting money laundering, based on algorithms that rapidly identify when criminals divide a large sum of money into multiple smaller transactions between many bank accounts \u2013 a technique known as \u2018smurfing\u2019.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Connecting the dots <\/h2>\n\n\n\n<p>The algorithms run on data taken from several bank accounts, which are represented as nodes on a large, complex graph, and the software is programmed to focus on the part of the graph where it detects the most suspicious activity.<\/p>\n\n\n\n<p>For example, if there is a deposit of one million pounds, the software can monitor where this exact sum of money is being transferred \u2013 it has the ability to identify all combinations of related transactions that take place, even if the money is split between different accounts and outgoings.<\/p>\n\n\n\n<p>As detailed in a paper published in the <a rel=\"noreferrer noopener\" href=\"https:\/\/epubs.siam.org\/doi\/epdf\/10.1137\/1.9781611977653.ch35\" target=\"_blank\">Proceedings of the 2023 SIAM International Conference on Data Mining<\/a>, lead researchers Dr. Huiping Chen and Dr. Grigorios Loukides, together with Dr. Robert Gwadera and Dr. Solon Pissis, say the new software is over three times more effective than current detection methods and can also analyse larger amounts of data.<\/p>\n\n\n\n<p>The United Nations Office on Drugs and Crime (UNODC) <a rel=\"noreferrer noopener\" href=\"https:\/\/www.google.com\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=&amp;cad=rja&amp;uact=8&amp;ved=2ahUKEwib_9jpmuOAAxWYUUEAHeOBA4IQFnoECCAQAQ&amp;url=https%3A%2F%2Fwww.unodc.org%2Funodc%2Fen%2Fmoney-laundering%2Foverview.html&amp;usg=AOvVaw2I2pLhTYqMJihde_mGwc8_&amp;opi=89978449\" target=\"_blank\">estimates<\/a> that\u202fbetween two percent and five percent of global GDP is laundered yearly, roughly between \u00a3632 billion and over \u00a31.5 trillion.<\/p>\n\n\n<div class=\"vlp-link-container vlp-layout-basic wp-block-visual-link-preview-link advgb-dyn-96bbfb40\"><a href=\"https:\/\/ioplus.nl\/archive\/en\/this-start-up-puts-an-end-to-the-tangle-of-bank-accounts-and-expenses\/\" class=\"vlp-link\" title=\"This start-up puts an end to the tangle of bank accounts and expenses\"><\/a><div class=\"vlp-layout-zone-side\"><div class=\"vlp-block-2 vlp-link-image\"><\/div><\/div><div class=\"vlp-layout-zone-main\"><div class=\"vlp-block-0 vlp-link-title\">This start-up puts an end to the tangle of bank accounts and expenses<\/div><div class=\"vlp-block-1 vlp-link-summary\">A checking account at Rabobank, a business account at Bunq, an investor account, and a crypto account. It is increasingly normal different financial products with different financial service providers. <\/div><\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\">Open source software<\/h2>\n\n\n\n<p>Dr Loukides comments: \u201cWe have developed an optimal method that can find the best possible solution for detecting common classifications of smurfing attacks across millions of amounts of data, on average 3.2 times more effectively than the state-of-the-art methods currently used. We are now working to improve the tool further, to deliver a quicker speed than conventional approaches but with even higher accuracy.\u201d<\/p>\n\n\n\n<p>The software for the new tool is open source and freely available to access. Because it can be used with much larger amounts of data than conventional detection methods, researchers say it can analyse large amounts of data over long periods of time, filtering out and sounding an alarm to indicate to the bank when it detects suspicious activity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Beyond financial activity<\/h2>\n\n\n\n<p>The approach has been tested using real data from an anonymous Czech bank and on fictional cases based on predictions of common patterns and activity present in cases of real money laundering. In both instances, the algorithms could detect all suspicious transaction patterns.<\/p>\n\n\n\n<p>Researchers say the new tool also has potential use beyond the detection of suspicious financial activity, as it could optimize marketing campaigns by enabling retailers to find and detect the most profitable bundles of products, improving the accuracy of retail data at speed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Computer scientists at King&#8217;s College London have developed a new tool that enables quicker and more accurate detection of money laundering, which can scan 50 million transactions in less than a second. The researchers have designed an entirely novel approach to detecting money laundering, based on algorithms that rapidly identify when criminals divide a large [&hellip;]<\/p>\n","protected":false},"author":2589,"featured_media":494307,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[8553],"tags":[66070,81255,81257,6588],"location":[55977],"article_type":[36684],"serie":[],"archives":[],"internal_archives":[],"reboot-archive":[],"class_list":["post-459537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital","tag-banks","tag-kings-college-london-5","tag-money-laundering-2","tag-software-en","location-united-kingdom","article_type-news"],"blocksy_meta":[],"acf":{"subtitle":"Researchers at King's College London developed a software that can scan million transactions in a few seconds, identifying crimes three times faster.  ","text_display_homepage":false},"author_meta":{"display_name":"Team IO","author_link":"https:\/\/ioplus.nl\/archive\/author\/erikdevries\/"},"featured_img":"https:\/\/ioplus.nl\/archive\/wp-content\/uploads\/2023\/09\/innovationorigins_a_criminal_laundering_money_through_digital_b_b6a6ab78-11f4-4e3f-b2db-0ac3cac22e36.png","coauthors":[],"tax_additional":{"categories":{"linked":["<a href=\"https:\/\/ioplus.nl\/archive\/en\/category\/digital\/\" class=\"advgb-post-tax-term\">Digital<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Digital<\/span>"]},"tags":{"linked":["<a href=\"https:\/\/ioplus.nl\/archive\/en\/category\/digital\/\" class=\"advgb-post-tax-term\">banks<\/a>","<a href=\"https:\/\/ioplus.nl\/archive\/en\/category\/digital\/\" class=\"advgb-post-tax-term\">King&#039;s College London<\/a>","<a href=\"https:\/\/ioplus.nl\/archive\/en\/category\/digital\/\" class=\"advgb-post-tax-term\">money laundering<\/a>","<a href=\"https:\/\/ioplus.nl\/archive\/en\/category\/digital\/\" class=\"advgb-post-tax-term\">Software<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">banks<\/span>","<span class=\"advgb-post-tax-term\">King&#039;s College London<\/span>","<span class=\"advgb-post-tax-term\">money laundering<\/span>","<span class=\"advgb-post-tax-term\">Software<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 3 years ago","modified":"Updated 3 years ago"},"absolute_dates":{"created":"Posted on September 28, 2023","modified":"Updated on September 28, 2023"},"absolute_dates_time":{"created":"Posted on September 28, 2023 9:30 am","modified":"Updated on September 28, 2023 9:30 am"},"featured_img_caption":"","series_order":"","_links":{"self":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/459537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/users\/2589"}],"replies":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/comments?post=459537"}],"version-history":[{"count":0,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/459537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media\/494307"}],"wp:attachment":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media?parent=459537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/categories?post=459537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/tags?post=459537"},{"taxonomy":"location","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/location?post=459537"},{"taxonomy":"article_type","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/article_type?post=459537"},{"taxonomy":"serie","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/serie?post=459537"},{"taxonomy":"archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/archives?post=459537"},{"taxonomy":"internal_archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/internal_archives?post=459537"},{"taxonomy":"reboot-archive","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/reboot-archive?post=459537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}