40 Algorithms Every Programmer Should Know

Conducting simple fraud analytics

The simple technique of fraud analytics is based on the assumption that in a network, the behaviour of a person is affected by the people they are connected to. In a network, two vertices are more likely to have similar behaviour if they are associated with each other.

Based on this assumption, we devise a simple technique. If we want to find the probability that a certain node, a, belongs to F, the probability is represented by P(F/q) and is calculated as follows:

Let's apply this to the preceding figure, where Neighborhood_n represents the neighborhood of vertex n and w(n, nj) represents the weight of the ...