Clustering algorithms for anti-money laundering using graph theory and social network analysis

HEMOLIA (a project under European community’s 7th framework programme) is a new generation Anti-Money Laundering (AML) intelligent multi-agent alert and investigation system which in addition to the traditional financial data makes extensive use of modern society’s huge telecom data source, thereby opening up a new dimension of capabilities to all Money Laundering fighters (FIUs, LEAs) and Financial Institutes (Banks, Insurance Companies, etc.). This Master-Thesis project is done at AIA, one of the partners for the HEMOLIA project in Barcelona. The objective of this thesis is to find the clusters in a network drawn by using the financial data. An extensive literature survey has been carried out and several standard algorithms related to networks have been studied and implemented. The clustering problem is a NP-hard problem and several algorithms like K-Means and Hierarchical clustering are being implemented for studying several problems relating to sociology, evolution, anthropology etc. However, these algorithms have certain drawbacks which make them very difficult to implement. The thesis suggests (a) a possible improvement to the K-Means algorithm, (b) a novel approach to the clustering problem using the Genetic Algorithms and (c) a new algorithm for finding the cluster of a node using the Genetic Algorithm.

Comparison of classification ability of hyperball algorithms to neural network and k-nearest neighbour algorithms

The main focus of this thesis is to evaluate and compare Hyperbalilearning algorithm (HBL) to other learning algorithms. In this work HBL is compared to feed forward artificial neural networks using back propagation learning, K-nearest neighbor and 103 algorithms. In order to evaluate the similarity of these algorithms, we carried out three experiments using nine benchmark data sets from UCI machine learning repository. The first experiment compares HBL to other algorithms when sample size of dataset is changing. The second experiment compares HBL to other algorithms when dimensionality of data changes. The last experiment compares HBL to other algorithms according to the level of agreement to data target values. Our observations in general showed, considering classification accuracy as a measure, HBL is performing as good as most ANn variants. Additionally, we also deduced that HBL.:s classification accuracy outperforms 103's and K-nearest neighbour's for the selected data sets.

Models and algorithms for transit network planning.

Tesis (Doctor en Ingeniería con Especialidad en Ingeniería de Sistemas) UANL, 2012.

Studies,Design and Development of Network Security Enhancement Services Using Novel Cryptographic Algorithms

Internet today has become a vital part of day to day life, owing to the revolutionary changes it has brought about in various fields. Dependence on the Internet as an information highway and knowledge bank is exponentially increasing so that a going back is beyond imagination. Transfer of critical information is also being carried out through the Internet. This widespread use of the Internet coupled with the tremendous growth in e-commerce and m-commerce has created a vital need for infonnation security.Internet has also become an active field of crackers and intruders. The whole development in this area can become null and void if fool-proof security of the data is not ensured without a chance of being adulterated. It is, hence a challenge before the professional community to develop systems to ensure security of the data sent through the Internet.Stream ciphers, hash functions and message authentication codes play vital roles in providing security services like confidentiality, integrity and authentication of the data sent through the Internet. There are several ·such popular and dependable techniques, which have been in use widely, for quite a long time. This long term exposure makes them vulnerable to successful or near successful attempts for attacks. Hence it is the need of the hour to develop new algorithms with better security.Hence studies were conducted on various types of algorithms being used in this area. Focus was given to identify the properties imparting security at this stage. By making use of a perception derived from these studies, new algorithms were designed. Performances of these algorithms were then studied followed by necessary modifications to yield an improved system consisting of a new stream cipher algorithm MAJE4, a new hash code JERIM- 320 and a new message authentication code MACJER-320. Detailed analysis and comparison with the existing popular schemes were also carried out to establish the security levels.The Secure Socket Layer (SSL) I Transport Layer Security (TLS) protocol is one of the most widely used security protocols in Internet. The cryptographic algorithms RC4 and HMAC have been in use for achieving security services like confidentiality and authentication in the SSL I TLS. But recent attacks on RC4 and HMAC have raised questions about the reliability of these algorithms. Hence MAJE4 and MACJER-320 have been proposed as substitutes for them. Detailed studies on the performance of these new algorithms were carried out; it has been observed that they are dependable alternatives.

Enhancing MPLS QoS routing algorithms by using the network protection degree paradigm

IP based networks still do not have the required degree of reliability required by new multimedia services, achieving such reliability will be crucial in the success or failure of the new Internet generation. Most of existing schemes for QoS routing do not take into consideration parameters concerning the quality of the protection, such as packet loss or restoration time. In this paper, we define a new paradigm to develop new protection strategies for building reliable MPLS networks, based on what we have called the network protection degree (NPD). This NPD consists of an a priori evaluation, the failure sensibility degree (FSD), which provides the failure probability and an a posteriori evaluation, the failure impact degree (FID), to determine the impact on the network in case of failure. Having mathematical formulated these components, we point out the most relevant components. Experimental results demonstrate the benefits of the utilization of the NPD, when used to enhance some current QoS routing algorithms to offer a certain degree of protection

Distributed acceleration of mobile radio network optimisation algorithms

The past decade has witnessed explosive growth of mobile subscribers and services. With the purpose of providing better-swifter-cheaper services, radio network optimisation plays a crucial role but faces enormous challenges. The concept of Dynamic Network Optimisation (DNO), therefore, has been introduced to optimally and continuously adjust network configurations, in response to changes in network conditions and traffic. However, the realization of DNO has been seriously hindered by the bottleneck of optimisation speed performance. An advanced distributed parallel solution is presented in this paper, as to bridge the gap by accelerating the sophisticated proprietary network optimisation algorithm, while maintaining the optimisation quality and numerical consistency. The ariesoACP product from Arieso Ltd serves as the main platform for acceleration. This solution has been prototyped, implemented and tested. Real-project based results exhibit a high scalability and substantial acceleration at an average speed-up of 2.5, 4.9 and 6.1 on a distributed 5-core, 9-core and 16-core system, respectively. This significantly outperforms other parallel solutions such as multi-threading. Furthermore, augmented optimisation outcome, alongside high correctness and self-consistency, have also been fulfilled. Overall, this is a breakthrough towards the realization of DNO.

Acceleration of radio network optimisation algorithms

The increasing demand for cheaper-faster-better services anytime and anywhere has made radio network optimisation much more complex than ever before. In order to dynamically optimise the serving network, Dynamic Network Optimisation (DNO), is proposed as the ultimate solution and future trend. The realization of DNO, however, has been hindered by a significant bottleneck of the optimisation speed as the network complexity grows. This paper presents a multi-threaded parallel solution to accelerate complicated proprietary network optimisation algorithms, under a rigid condition of numerical consistency. ariesoACP product from Arieso Ltd serves as the platform for parallelisation. This parallel solution has been benchmarked and results exhibit a high scalability and a run-time reduction by 11% to 42% based on the technology, subscriber density and blocking rate of a given network in comparison with the original version. Further, it is highly essential that the parallel version produces equivalent optimisation quality in terms of identical optimisation outputs.

Neurofuzzy mixture of experts network parallel learning and model construction algorithms

A connection between a fuzzy neural network model with the mixture of experts network (MEN) modelling approach is established. Based on this linkage, two new neuro-fuzzy MEN construction algorithms are proposed to overcome the curse of dimensionality that is inherent in the majority of associative memory networks and/or other rule based systems. The first construction algorithm employs a function selection manager module in an MEN system. The second construction algorithm is based on a new parallel learning algorithm in which each model rule is trained independently, for which the parameter convergence property of the new learning method is established. As with the first approach, an expert selection criterion is utilised in this algorithm. These two construction methods are equivalent in their effectiveness in overcoming the curse of dimensionality by reducing the dimensionality of the regression vector, but the latter has the additional computational advantage of parallel processing. The proposed algorithms are analysed for effectiveness followed by numerical examples to illustrate their efficacy for some difficult data based modelling problems.

Generalized neurofuzzy network modeling algorithms using Bezier-Bernstein polynomial functions and additive decomposition

This paper introduces a new neurofuzzy model construction algorithm for nonlinear dynamic systems based upon basis functions that are Bezier-Bernstein polynomial functions. This paper is generalized in that it copes with n-dimensional inputs by utilising an additive decomposition construction to overcome the curse of dimensionality associated with high n. This new construction algorithm also introduces univariate Bezier-Bernstein polynomial functions for the completeness of the generalized procedure. Like the B-spline expansion based neurofuzzy systems, Bezier-Bernstein polynomial function based neurofuzzy networks hold desirable properties such as nonnegativity of the basis functions, unity of support, and interpretability of basis function as fuzzy membership functions, moreover with the additional advantages of structural parsimony and Delaunay input space partition, essentially overcoming the curse of dimensionality associated with conventional fuzzy and RBF networks. This new modeling network is based on additive decomposition approach together with two separate basis function formation approaches for both univariate and bivariate Bezier-Bernstein polynomial functions used in model construction. The overall network weights are then learnt using conventional least squares methods. Numerical examples are included to demonstrate the effectiveness of this new data based modeling approach.

Control methodologies: Peak reduction algorithms for DNO owned storage devices on the Low Voltage network

The Distribution Network Operators (DNOs) role is becoming more difficult as electric vehicles and electric heating penetrate the network, increasing the demand. As a result it becomes harder for the distribution networks infrastructure to remain within its operating constraints. Energy storage is a potential alternative to conventional network reinforcement such as upgrading cables and transformers. The research presented here in this paper shows that due to the volatile nature of the LV network, the control approach used for energy storage has a significant impact on performance. This paper presents and compares control methodologies for energy storage where the objective is to get the greatest possible peak demand reduction across the day from a pre-specified storage device. The results presented show the benefits and detriments of specific types of control on a storage device connected to a single phase of an LV network, using aggregated demand profiles based on real smart meter data from individual homes. The research demonstrates an important relationship between how predictable an aggregation is and the best control methodology required to achieve the objective.

Distributed parallelization of greedy Mobile Network Optimization algorithms

The Mobile Network Optimization (MNO) technologies have advanced at a tremendous pace in recent years. And the Dynamic Network Optimization (DNO) concept emerged years ago, aimed to continuously optimize the network in response to variations in network traffic and conditions. Yet, DNO development is still at its infancy, mainly hindered by a significant bottleneck of the lengthy optimization runtime. This paper identifies parallelism in greedy MNO algorithms and presents an advanced distributed parallel solution. The solution is designed, implemented and applied to real-life projects whose results yield a significant, highly scalable and nearly linear speedup up to 6.9 and 14.5 on distributed 8-core and 16-core systems respectively. Meanwhile, optimization outputs exhibit self-consistency and high precision compared to their sequential counterpart. This is a milestone in realizing the DNO. Further, the techniques may be applied to similar greedy optimization algorithm based applications.

Asynchronous distributed parallelization of mobile network optimization algorithms

It has been years since the introduction of the Dynamic Network Optimization (DNO) concept, yet the DNO development is still at its infant stage, largely due to a lack of breakthrough in minimizing the lengthy optimization runtime. Our previous work, a distributed parallel solution, has achieved a significant speed gain. To cater for the increased optimization complexity pressed by the uptake of smartphones and tablets, however, this paper examines the potential areas for further improvement and presents a novel asynchronous distributed parallel design that minimizes the inter-process communications. The new approach is implemented and applied to real-life projects whose results demonstrate an augmented acceleration of 7.5 times on a 16-core distributed system compared to 6.1 of our previous solution. Moreover, there is no degradation in the optimization outcome. This is a solid sprint towards the realization of DNO.

Efficiency of evolutionary algorithms in water network pipe sizing

The pipe sizing of water networks via evolutionary algorithms is of great interest because it allows the selection of alternative economical solutions that meet a set of design requirements. However, available evolutionary methods are numerous, and methodologies to compare the performance of these methods beyond obtaining a minimal solution for a given problem are currently lacking. A methodology to compare algorithms based on an efficiency rate (E) is presented here and applied to the pipe-sizing problem of four medium-sized benchmark networks (Hanoi, New York Tunnel, GoYang and R-9 Joao Pessoa). E numerically determines the performance of a given algorithm while also considering the quality of the obtained solution and the required computational effort. From the wide range of available evolutionary algorithms, four algorithms were selected to implement the methodology: a PseudoGenetic Algorithm (PGA), Particle Swarm Optimization (PSO), a Harmony Search and a modified Shuffled Frog Leaping Algorithm (SFLA). After more than 500,000 simulations, a statistical analysis was performed based on the specific parameters each algorithm requires to operate, and finally, E was analyzed for each network and algorithm. The efficiency measure indicated that PGA is the most efficient algorithm for problems of greater complexity and that HS is the most efficient algorithm for less complex problems. However, the main contribution of this work is that the proposed efficiency ratio provides a neutral strategy to compare optimization algorithms and may be useful in the future to select the most appropriate algorithm for different types of optimization problems.