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Money Muling Detection Challenge | Team Quasar

RIFT 2026 Hackathon - Graph Theory Track

🔍 Why this project exists

Money muling is a key technique used in financial fraud, where illicit funds are transferred through multiple accounts to obscure their origin. Traditional database queries fail to detect these complex, multi-hop transaction patterns.

🚀 What this system does

This system models financial transactions as a graph and detects:

  • Circular fund flows (fraud rings)
  • High-centrality accounts (potential hubs)
  • Suspicious transaction patterns

🧠 Key Idea

Instead of analyzing transactions in isolation, this project uses graph theory to analyze relationships between accounts.

✨ What makes it different

  • Uses Tarjan’s SCC algorithm for fraud ring detection
  • Detects multi-hop laundering patterns
  • Designed for large-scale transaction datasets

Tech Stack

  • Backend: Python (FastAPI)
  • Graph Engine: NetworkX
  • Database: MySQL
  • Visualization: Cytoscape.js

📊 Example Insight

Input: Transaction dataset (CSV)
Output:

  • Flagged accounts with suspicion scores
  • Identified fraud rings
  • Visualization of transaction graph

Suspicion Score Methodology

  • Circular Routing (90-100%): Accounts found in a closed directed cycle (length 3-5) are flagged with the highest risk.
  • High Centrality (70-85%): Accounts acting as "hubs" (high degree centrality) are flagged for Smurfing/Layering patterns.
  • Pattern Weights: Scores are calculated based on the account's position within the network and the density of the identified fraud ring.

Algorithm Approach & Complexity

  • Cycle Detection: Tarjan’s SCC algorithm - $O(V + E)$
  • Centrality Analysis: Degree Centrality - $O(E)$
  • Execution: Optimized for sub-second processing of large transaction CSVs.

Installation & Setup

  1. Clone the repository.
  2. Install dependencies: pip install -r requirements.txt
  3. Configure MySQL in database.py.
  4. Run the app: python main.py
  5. Access the dashboard at http://127.0.0.1:8000

Team Members

  • Anirudh Dhamodaran
  • Jithesh Sankarganesh
  • Chris Johnson
  • Darshan E

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