PayPal is at the forefront of applying large scale graph processing and machine learning algorithms to keep fraudsters at bay. In this talk, I’ll present how advanced graph processing and machine learning algorithms such as Deep Learning and Gradient Boosting are applied at PayPal for fraud prevention. I’ll elaborate on specific challenges in applying large scale graph processing & machine technique to payment fraud prevention. I’ll explain how we employ sophisticated machine learning tools – open source and in-house developed. I will also present results from experiments conducted on a very large graph data set containing millions of edges and vertices.
Emixa Mendix Meetup 11 April 2024 about Mendix Native development
Large Scale ML for Fraud Prevention Using Active Learning and Advanced Algorithms
1. Large Scale Machine Learning for Fraud
Prevention
Disclaimer: views expressed here are my own and do not
necessarily represent the views of PayPal, its affiliates or
subsidiaries.
5. Vibrant
developer
ecosyste
m
Efficient
payment
processing
with low SLA
active customer
accounts
200M
Secure
data
storage
&
handling
Traditional
& NoSQL
databases
PayPal operates
one of the largest
PRIVATE
CLOUDS
in the world
We have transformed
core business
processes into robust
SERVICE-BASED
PLATFORMS
The power of
our platform
Our technology transformation enables us to:
• Process payments at tremendous scale
• Accelerate the innovation of new products
• Engage world-class developers & technologists
About PayPal
7. Fraud Prevention @ PayPal
Robust feature engineering, machine
learning and statistical models
Highly scalable and multi-layered
infrastructure software
Superior team of data scientists,
researchers, financial and intelligence
analysts
Images source:
8. Fraud Prevention @ PayPal
• Employs advanced machine learning and statistical models to flag
fraudulent behavior up-front
• More sophisticated algorithms after transaction is complete
Transaction Level
• Monitor account level activity to identify abusive behavior
• Abusive pattern include frequent payments, suspicious profile
changes
Account Level
• Monitor account-to-account interaction
• Frequent transfer of money from several accounts to one central
account
Network Level
9. Fraud Prevention – What are we up against?
Fraudsters are becoming increasingly smarter and adaptive
Need cost-effective solutions that can model complex attack
patterns not previously observed
Need scalable and computationally efficient prediction models