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How Giant Oak Data Scientist Alex Crain Won Financial Crime Hackathon

by Pinkston, on Dec 22, 2020 10:38:53 AM

Alex Crain, a data scientist at Giant Oak, was on the team that claimed first prize in AIR’s (Alliance for Innovation Regulation) TechSprint on Financial Crime this October. The competition brought together child sexual abuse material (CSAM) investigation experts, cryptocurrency transaction investigation experts, experts from financial crime regulatory agencies, software engineers, and data scientists to address the use of cryptocurrency in driving online CSAM. 

Founded by Jo Ann Barefoot, AIR generates thought leadership, connects and educates innovators and regulators, and runs a policy accelerator to test and demonstrate new regulatory technologies. 

Specifically, the competition asked, “Can we curtail CSAM by detecting users through their cryptocurrency payment activities, without compromising the privacy and data security of innocent people?”

Alex and his team proved that we can. 

Over the past several years, cryptocurrency has become a popular payment method for child sexual abuse material. Unlike cash, cryptocurrency can easily be traced, but, as the challenge explained, “Traditional anti-money laundering technology and current law enforcement techniques are often ineffective in detecting and intercepting it.”

The financial and law enforcement communities urgently need technological solutions to combat these crimes. “There were a lot of smart people in that room,” Alex said. “We didn’t win because we were necessarily the smartest or the most experienced. My team won because we looked at the problem differently. I used my Machine Learning background and the principles I learned from my colleagues at Giant Oak. 

Alex created an algorithm that predicts CSAM by using GOST-like screening approaches. In a matter of seconds, Machine Learning models can prioritize tens of millions of Bitcoin addresses by the likelihood that each pertains to CSAM. ML, therefore, empowers screeners to focus their efforts and make tasks easier for investigators. Machine Learning can increase both effectiveness and efficiency. Alex and his team presented their solution to a panel of distinguished judges from the privacy and security industries. Also present were influential figures in the area, including Ashton Kutcher and Julie Cordua, representing Thorn; Chris Larsen, co-founder and executive chairman of Ripple; Senator Rob Portman; Congressman Anthony Gonzalez; Linda Lacewell, Superintendent of the New York State Department of Financial Services; and more. 

Too often, law enforcement approaches innovation through investigation; really, the first task is to efficiently discover the best cases to investigate.. For example, instead of just investigating the suspicious actor we find on a list, we must use technology to discover the previously unknown actor. GOST does this by searching publicly available information that screeners and investigators typically don’t search such as the deep web – to uncover potentially illicit behavior. 

As the proliferation of cryptocurrency for child sexual abuse continues to intensify, it’s essential to build solutions to combat these heinous criminal activities. At Giant Oak, we’re incredibly proud of Alex’s participation in AIR’s TechSprint, and we couldn't be more thrilled with the outcome. 

Topics:Press

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