1st Edition

Data Mining for Intelligence, Fraud & Criminal Detection Advanced Analytics & Information Sharing Technologies

By Christopher Westphal Copyright 2009
    448 Pages 208 B/W Illustrations
    by CRC Press

    In 2004, the Government Accountability Office provided a report detailing approximately 200 government-based data-mining projects. While there is comfort in knowing that there are many effective systems, that comfort isn’t worth much unless we can determine that these systems are being effectively and responsibly employed.

    Written by one of the most respected consultants in the area of data mining and security, Data Mining for Intelligence, Fraud & Criminal Detection: Advanced Analytics & Information Sharing Technologies reviews the tangible results produced by these systems and evaluates their effectiveness. While CSI-type shows may depict information sharing and analysis that are accomplished with the push of a button, this sort of proficiency is more fiction than reality. Going beyond a discussion of the various technologies, the author outlines the issues of information sharing and the effective interpretation of results, which are critical to any integrated homeland security effort.

    Organized into three main sections, the book fully examines and outlines the future of this field with an insider’s perspective and a visionary’s insight.

    • Section 1 provides a fundamental understanding of the types of data that can be used in current systems. It covers approaches to analyzing data and clearly delineates how to connect the dots among different data elements
    • Section 2 provides real-world examples derived from actual operational systems to show how data is used, manipulated, and interpreted in domains involving human smuggling, money laundering, narcotics trafficking, and corporate fraud
    • Section 3 provides an overview of the many information-sharing systems, organizations, and task forces as well as data interchange formats. It also discusses optimal information-sharing and analytical architectures

    Currently, there is very little published literature that truly defines real-world systems. Although politics and other factors all play into how much one agency is willing to support the sharing of its resources, many now embrace the wisdom of that path. This book will provide those individuals with an understanding of what approaches are currently available and how they can be most effectively employed.

    Overview

    Introduction

    Sharing Data

    Connect the Dots

    Analytical Versus Referential Data

    Information Sharing

    Conclusion

    The Quality of Data

    Introduction

    Value Errors

    Missing Data and Bad Structures

    Unique Addresses

    Distinct Phone Numbers

    Individual ID Numbers

    Anomalous Accounts

    One-of-a-Kind Transactions

    Original Organizations

    Perspicuous People

    Entity Resolution

    Anonymous Resolution

    Conclusion

    What Are Patterns?

    Introduction

    Which Pattern Is More Important?

    Do These Patterns Make Sense?

    Is This a Reliable Pattern?

    Is This an Actionable Pattern?

    Which Pattern Is More Valuable?

    What Does this Pattern Show?

    Who Is the Most Important Person?

    Conclusion

    Border Protection

    Introduction

    I-94 Arrival/Departure Records

    Land Border Targeting

    Cluster by Hour of the Day (HOD)

    Cluster by Day of the Week (DOW)

    Cluster by Date

    Cluster by Port of Entry (POE)

    Clusters by Lane

    Cluster by Inspector

    Cluster by City/State

    Cluster by VIN

    Putting It Together

    Conclusion

    Money Laundering and Financial Crimes

    Introduction

    Suspicious Activity Reports

    Structuring Transactions

    Bust-Out Schemes

    A Consumer Bust-Out Scheme

    Busting and Kiting

    Identity Fraud

    Large Connections

    Attorneys and Law Firms

    Cheap Motels

    Location, Location, Location

    Individual Taxpayer Identification Number

    SAR Versus STR

    Timing Is Everything

    False Temporal Patterns

    A Final Note

    Conclusion

    Money Service Businesses

    Introduction

    What Is a Money Service Business?

    Why Wire Remitters?

    Steps of a Wire Remittance

    Structure of a Wire Transfer

    Combating Human Smuggling

    The Smuggling Process

    Changing the Rules

    Seizing Assets

    Corridor States

    Drug Dealers

    Suspicious Activity Reports

    Elder Abuse Pattern

    Ornery Old Man

    Other MSB Patterns

    Multiple Locations

    Minimal Overlaps

    Official Deposits

    Heavenly Offerings

    Dirty Dancing

    Conclusion

    Fraud Analytics

    Introduction

    Warranty Fraud Anecdotes

    Automobile Warranties

    Hurricane Katrina

    Corporate Frauds

    Employees as Vendors

    Vendors as Vendors

    Corporate Expenses

    Duplicate Payments

    Human Resources

    Gift Card Fraud

    Additional Examples

    Pharmaceutical

    Phishing/Click Fraud

    Tax Evasion

    Medicare Claim Fraud

    Conclusion

    Information-Sharing Protocols

    Introduction

    Global Justice XML Data Model (Global JXDM)

    Data Dictionary

    Data Model

    Component Reuse Repository

    National Information Exchange Model

    28 CFR Part 23

    Conclusion

    Information-Sharing Systems

    Introduction

    Automated Regional Justice Information System (ARJIS)

    Citizen and Law Enforcement Analysis and Reporting (CLEAR)

    Comprehensive Regional Information Management Exchange System

    (CRIMES)

    Factual Analysis Criminal Threat Solution (FACTS) System

    Florida Information Network for Data Exchange and Retrieval (FINDER)

    Ohio Local Law Enforcement Information Sharing Network (OLLEISN)

    Law Enforcement Information Exchange (LInX)

    OneDOJ, R-DEx, N-DEx

    Law Enforcement Online (LEO)

    Joint Regional Information Exchange System (JRIES)

    Joint Terrorism Task Force (JTTF)

    State-Level Fusion Centers

    High Intensity Drug Trafficking Area (HIDTA)

    High Intensity Financial Crime Area (HIFCA)

    Regional Information Sharing System (RISSs)

    Conclusion

    Summary

    Biography

    Christopher Westphal

    "…this book should be mandatory reading for every Crime Analyst. I’ve seen a lot of this info before but never in one place before nor with the level of explanation and examples."
    —Michael P. Ley, Antiterrorism Officer (ATO) & Intelligence Coordinator, U.S. Marine Corps Support Facility-Blount Island, Jacksonville, FL, USA