Research On Hidden Group Detection Technology In Financial Transaction Network

Under the complex financial background, money-laundering is an important financial criminal activity. Along with the technical progress, there are more and more groups that make money-laundering activities. The group, namely hidden group in this article, tries to hide its existence through kinds of methods to conceal its criminality.Link mining technology is different from traditional data mining technology that treats all the objects as independent ones and it even more pays great attention to the links which constitute the main data in the financial domain. This article considers the hidden group's behavior, and takes the Hidden Markov Model as the financial transaction network's evolutional model. In the financial transaction network the nodes'social structure is a Markov chain. The transactions between two nodes are mutually independent, and the transaction graph is only determined by the social structure at some time, therefore the transaction sequence conforms to the Hidden Markov Processes. This article do not pay attention to the situation that exists no groups because we are only interested in hidden group. On the one hand, we present a social structure and input the financial transaction sequence from the Hidden Markov Model. We observe the model's accuracy and validity. On the other hand, this research focuses on the relation between the probability that we think a hidden group exists and the transaction intensity sequence periodicity.When we detect the hidden group, the space's scale we must visit increases exponentially along with the nodes'growth. Therefore this article uses the Genetic Algorithm as the hidden group detection's algorithm, and discusses the solution process under the application background, and analyzes the results of the experiment to confirmate the algorithm's validity.An archetypal system for group detection in financial transaction network is designed and developed. Introduces components of the model, main designing and work flow. Moreover, performance analysis of the system is presented.