Telecom Fraud Identification based on Vertical Federated Secure Boosting Tree Algorithm

With the continuous development of the Internet industry, the means of fraud have become more and more deceptive, and telecom fraud has gradually become a common means, telecom fraudsters are able to take advantages of new technological means to carry out criminal activities. Therefore, the model being able to accurately identify fraud phone numbers is demanded as it can fundamentally avoid the risk of fraud. However, the data of customers are always privacy sensitive. In order to prevent the privacy of each telecom operator’s customers from being leaked in the process of modeling whether an unknown phone number is a telecom fraud number using vertical federated learning. Secure Boosting Tree (SBT) algorithm was introduced to handle the phone number data, and the optimal model was obtained through a large number of comparative experiments. Compared with the results obtained by the traditional centralized learning method, the effectiveness of federated learning is verified.

I. Introduction

With the continuous development of science and technology, China pays more and more attention to the problem of network fraud, on September 2, 2022, the "People’s Republic of China Anti-Telecom Network Fraud Law" was voted, and implemented on December 1, 2022. With the renewal of the law, people’s awareness of anti-telecom fraud is increasing, howevr telecom fraudsters are usually good at using social psychological means to exploit people’s psychological vulnerabilities for phishing fraud or identity fraud. They can create emergencies, impersonate institutional or bank staff, etc., and entice people to divulge sensitive personal information or conduct illegal transactions. It makes it easier for people who lack a sense of prevention to fall into the trap of criminals. And the globalization of the Internet makes it easy for fraudsters to hide their identities and cross borders between different countries. This makes it more difficult to combat telecom fraud because it involves multiple jurisdictions and law enforcement agencies working together. Therefore, if the telecom fraud number can be identified, the proboem of fraud can be fundamentally solved.