Perpetrators of organized fraud, internal corruption, and supply chain manipulation frequently attempt to hide their identities by registering multiple shell corporations, using proxy names, or sharing communication nodes. Fraud units counter these concealment tactics by deploying Network Graph Analytics and Entity Resolution Engines.
[Extract Multi-Source Vendor Masters] ──► [Run Entity Resolution Scan] ──► [Isolate Shared ID Graph Nodes]
Entity resolution engines process data across separate corporate systems to identify hidden connections:
Entity Matching Weights = ( Vendor Phone == Employee Phone ) + ( Vendor Bank Account == Employee Bank Account )
Network graph analytics visualize these resolved entities as a network of nodes and connecting lines, allowing fraud analysts to identify hidden relationship patterns:
- Shared Asset Nodes: Flagging instances where multiple independent suppliers share identical bank accounts, physical addresses, or tax registration codes.
- Gatekeeper Identification: Analyzing communication logs to identify internal employees who serve as single points of contact for a cluster of external contractors.
- Collusion Group Mapping: Spotting unusual patterns of direct communication between purchasing clerks and bidding contractors outside approved procurement systems, helping to expose potential bid-rigging networks early.