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Pattern Mining for Anomaly Detection in Graphs: Application to Fraud in Public Procurement

Author

Listed:
  • Lucas Potin

    (LIA - Laboratoire Informatique d'Avignon - AU - Avignon Université - Centre d'Enseignement et de Recherche en Informatique - CERI)

  • Rosa Figueiredo

    (LIA - Laboratoire Informatique d'Avignon - AU - Avignon Université - Centre d'Enseignement et de Recherche en Informatique - CERI)

  • Vincent Labatut

    (LIA - Laboratoire Informatique d'Avignon - AU - Avignon Université - Centre d'Enseignement et de Recherche en Informatique - CERI)

  • Christine Largeron

    (LHC - Laboratoire Hubert Curien - IOGS - Institut d'Optique Graduate School - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

Abstract

In the context of public procurement, several indicators called red flags are used to estimate fraud risk. They are computed according to certain contract attributes and are therefore dependent on the proper filling of the contract and award notices. However, these attributes are very often missing in practice, which prohibits red flags computation. Traditional fraud detection approaches focus on tabular data only, considering each contract separately, and are therefore very sensitive to this issue. In this work, we adopt a graph-based method allowing leveraging relations between contracts, to compensate for the missing attributes. We propose PANG (Pattern-Based Anomaly Detection in Graphs), a general supervised framework relying on pattern extraction to detect anomalous graphs in a collection of attributed graphs. Notably, it is able to identify induced subgraphs, a type of pattern widely overlooked in the literature. When benchmarked on standard datasets, its predictive performance is on par with state-of-the-art methods, with the additional advantage of being explainable. These experiments also reveal that induced patterns are more discriminative on certain datasets. When applying PANG to public procurement data, the prediction is superior to other methods, and it identifies subgraph patterns that are characteristic of fraud-prone situations, thereby making it possible to better understand fraudulent behavior.

Suggested Citation

  • Lucas Potin & Rosa Figueiredo & Vincent Labatut & Christine Largeron, 2023. "Pattern Mining for Anomaly Detection in Graphs: Application to Fraud in Public Procurement," Post-Print hal-04131485, HAL.
  • Handle: RePEc:hal:journl:hal-04131485
    DOI: 10.1007/978-3-031-43427-3_5
    Note: View the original document on HAL open archive server: https://hal.science/hal-04131485
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    References listed on IDEAS

    as
    1. Johannes Wachs & J'anos Kert'esz, 2019. "A network approach to cartel detection in public auction markets," Papers 1906.08667, arXiv.org.
    2. Maarten Houbraken & Sofie Demeyer & Tom Michoel & Pieter Audenaert & Didier Colle & Mario Pickavet, 2014. "The Index-Based Subgraph Matching Algorithm with General Symmetries (ISMAGS): Exploiting Symmetry for Faster Subgraph Enumeration," PLOS ONE, Public Library of Science, vol. 9(5), pages 1-15, May.
    3. Maréchal, François & Morand, Pierre-Henri, 2022. "Are social and environmental clauses a tool for favoritism? Analysis of French public procurement contracts," European Journal of Political Economy, Elsevier, vol. 73(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Pattern Mining; Graph Classification; Public Procurement; Fraud Detection;
    All these keywords.

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