# Graph Tech Uncovers Coronavirus Aid Cybercrime
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-09-07
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Uncovering COVID-19 Fraud with Graph Database Technology
Meta Description: Learn how graph database technology can effectively expose cybercriminals exploiting COVID-19 aid funds. Insights from Neo4j's Amy Hodler.
URL: https://financedigest.com/graph-tech-uncovers-coronavirus-aid-cybercrimehtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/untitled-design-5-1736838853058-compressed.jpg)

_By **Amy Hodler,** Director of Analytics and AI Program at_ [_Neo4j_](https://neo4j.com/)

_Coronavirus aid money has become a major target for cybercriminals. Graph database technology can uncover links between data that expose the fraudsters effectively, explains Neo4j’s Amy Hodler_

Coronavirus has been a gift for cybercriminals and they have been quick to exploit it. With the [pandemic moving](https://www.financedigest.com/exclusive-eu-to-move-away-from-emergency-phase-of-covid-pandemic-document.html "Exclusive-EU to move away from emergency phase of COVID pandemic – document") so fast, and funds being issued so swiftly the potential for scams and fraud are huge. The World Health Organisation, for example, has seen a five-fold increase in cyberattacks [since the pandemic](https://www.financedigest.com/uk-sees-biggest-rise-in-foreign-workers-since-covid-19-pandemic.html "UK sees biggest rise in foreign workers since COVID-19 pandemic") started.

Bad actors are using fake identities to syphon off governmental [emergency funds](https://www.financedigest.com/where-can-you-start-building-your-emergency-funds.html "Where Can You Start Building Your Emergency Funds?"), for example. This behaviour is particularly severe in Germany, where fraudsters are trawling [businesses applying for emergency](https://www.financedigest.com/electric-vehicle-transmission-market-emerging-growth-analysis-future-demand-and-business-opportunities-2027.html "Electric Vehicle Transmission Market Emerging Growth Analysis, Future Demand and Business Opportunities 2027") funds. This data is used to divert funds from state accounts into their own fraudulent [bank](https://www.financedigest.com/community-fintech-11onze-to-launch-el-canut-a-super-app-offering-universal-banking-accounts-and-digital-debit-cards.html "Community fintech 11Onze to launch – EL CANUT – a super APP offering universal banking accounts and digital debit cards") accounts. The government of German province North Rhine-Westphalia is believed to have lost tens of [millions of euros](https://www.financedigest.com/sp-global-fined-1-1-million-euros-for-premature-credit-rating-publications.html "S&P Global fined 1.1 million euros for premature credit rating publications") in a recent phishing attack. Cybercriminals cloned an official website designed to distribute COVID-19 financial [aid](https://www.financedigest.com/how-decentralized-finance-can-aid-in-the-acquisition-process.html "How Decentralized Finance can aid in the acquisition process"). Personal details provided by applicants on the site were used to fraudulently apply for funds and [collect payments](https://www.financedigest.com/the-collective-power-of-partnerships-integrating-payment-solutions-to-drive-business-success.html "The collective power of partnerships: integrating payment solutions to drive business success") on their behalf.

In a [joint advisory](https://www.ncsc.gov.uk/news/covid-19-exploited-by-cyber-actors-advisory), the UK’s National Cyber Security Centre (NCSC) and the United States Department of Homeland Security (DHS) Cybersecurity and Infrastructure Security Agency (CISA) have issued a warning that a number of malicious cyber actors and advanced persistent threat groups are extremely active. They are targeting individuals, [small and medium businesses](https://www.financedigest.com/foolproof-local-marketing-strategies-for-small-businesses.html "Foolproof Local Marketing Strategies for Small Businesses") and large organisations with COVID-19 scams and phishing emails.

In the financial [services sector](https://www.financedigest.com/how-communication-technology-can-help-relieve-pressure-on-staff-in-the-financial-services-sector.html "How communication technology can help relieve pressure on staff in the financial services sector "), companies continuously check and compare transactional and personal data to monitor for suspicious actions in the fight against fraud. Similar to the application for financial aid, bad actors that defraud financial [institutions](https://www.financedigest.com/top-5-security-technologies-that-every-finance-institution-workplace-should-consider.html "Top 5 Security Technologies That Every Finance Institution Workplace Should Consider") use false or synthetic identities when creating accounts or loan applications. Information such as home address, [phone number](https://www.financedigest.com/your-phone-number-on-google-search-giant-now-takes-removal-demands.html "Your phone number on Google? Search giant now takes removal demands") and email details utilise identities that are reconstructed to create a totally fictitious persona. According to [McKinsey](https://www.mckinsey.com/business-functions/risk/our-insights/fighting-back-against-synthetic-identity-fraud), this results in major losses for financial institutions, with an estimated 80% of all credit card fraud losses stemming from synthetic identity fraud.

![Amy Hodler](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/amyhodler-450x565-1736838853267-compressed.png)

Amy Hodler

Conventional fraud detection solutions are not performant [enough to uncover these synthetic identities](https://www.financedigest.com/why-banks-cant-adopt-digital-identities-fast-enough.html "Why Banks Can’t Adopt Digital Identities Fast Enough"). Such solutions can only relate two to three pieces of data at any one time, such as name, home address or [bank account](https://www.financedigest.com/being-nimble-and-responsive-in-banking-and-business-has-arrived-thanks-to-accounting-automation-technologies.html "Being Nimble and Responsive in Banking and Business Has Arrived, Thanks to Accounting Automation Technologies"). This can be sufficient for trapping individual perpetrators, it just isn’t sophisticated enough to uncover fraud rings where multiple parties are involved.

**_Conventional approaches ineffective_**

The main reason why conventional approaches to fraud monitoring are so poor, is that the majority of fraud [detection systems](https://www.financedigest.com/the-fall-detection-system-market-to-show-innovation-based-steadiness.html "The Fall Detection System Market to show innovation-based steadiness") are based on a relational database model. This means that [data is stored](https://www.financedigest.com/exclusive-tiktok-nears-deal-with-oracle-to-store-its-data-sources.html "Exclusive-TikTok nears deal with Oracle to store its data-sources") in a format of predefined tables and columns. With large, unstructured [data sets](https://www.financedigest.com/byd-set-to-be-chinas-top-selling-car-brand-for-nov-tesla-gains-data.html "BYD set to be China’s top-selling car brand for Nov, Tesla gains -data"), relational databases rapidly hit their limits. Queries [end up being too convoluted and response times](https://www.financedigest.com/hedge-funds-set-to-end-2021-with-inflows-for-first-time-in-three-years.html "Hedge funds set to end 2021 with inflows for first time in three years") too protracted.

In addition, relational database [solutions are trying to detect fraud with no real](https://www.financedigest.com/the-professionals-at-real-estate-funding-solutions-helping-you-find-success-with-commercial-real-estate-loans.html "The Professionals At Real Estate Funding Solutions Helping You Find Success With Commercial Real Estate Loans") context. [Banks and government authorities need](https://www.financedigest.com/could-the-npa-be-the-catalyst-banks-need-to-transform-their-payment-networks.html "Could the NPA be the catalyst banks need to transform their payment networks?") the ability to monitor a trail from one account to another. This [requires having a 360-degree view of the intricate complexity of the fraud](https://www.financedigest.com/fraud-protection-why-customer-onboarding-requires-digital-identity-processing.html "Fraud Protection: Why Customer Onboarding Requires Digital Identity Processing") network to determine how fraudulent activities are related.

Graph database [technology may be an essential](https://www.financedigest.com/why-anti-spoofing-fingerprint-technology-is-essential-for-the-continued-growth-of-digital-payments.html "Why anti-spoofing fingerprint technology is essential for the continued growth of digital payments") weapon in fighting bad actors. In contrast to relational databases, graphs not only interpret individual data such as person, account number and home address, but also their relationships with one another. This includes links such as ‘resident in’ or ‘transacted with’. The data model can thus accurately portray these complex relationships. Entities and relationships are referred to as ‘nodes’ and ‘edges’ or ‘relationships’.

The genius of graph database technology is that any number of qualitative or quantitative properties can be assigned, showing complex relationships in a coherent and descriptive way.

**Mapping complex connections recoups** billions of dollars

An example of the facility graphs have in uncovering hidden connections is highlighted by the International Consortium of Investigative Journalists, the group behind the [Panama and Paradise Papers](https://www.icij.org/blog/2018/07/how-icij-deals-with-massive-data-leaks-like-the-panama-papers-and-paradise-papers/). The group used graph [technology](https://www.financedigest.com/the-technologies-set-to-boost-the-finance-sector-in-2022.html "The technologies set to boost the finance sector in 2022") to map incredibly complex financial connections and spot irregularities. Graph technology has played a major role in recouping [more than $1.2 billion in resulting fines and back taxes](https://www.icij.org/investigations/panama-papers/panama-papers-helps-recover-more-than-1-2-billion-around-the-world/?utm_source=ICIJ&utm_campaign=11e3c89505-0403_WeeklyEmail&utm_medium=email&utm_term=0_992ecfdbb2-11e3c89505-82515213) since the original investigation back in 2016.

[Staying one step ahead of cybercriminals is hugely challenging in a time of unprecedented change](https://www.financedigest.com/german-regulator-stays-vigilant-as-meta-changes-vr-headset-rules.html "German regulator stays vigilant as Meta changes VR headset rules"). Graph technology can easily identify fraud rings and other scams with a very high level of accuracy. Uncovering connections between data in real [time is key to ensuring coronavirus crisis funding](https://www.financedigest.com/female-founders-still-struggle-to-get-funded-time-to-rip-up-the-old-rulebook.html "Female Founders Still Struggle to Get Funded: Time To Rip Up The Old Rulebook") reaches those in real need, and not the cybercriminal community.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---