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[CS.AI] Payroll Fraud Detection in Synthetic HR/ERP Graphs: An Inductive Comparison of Rules, Path Features, and Graph Neural Networks

Published at: 2026-11-03 22:00 Last updated: 2026-11-05 00:45
#AI #Machine Learning #Graph

Payroll‑fraud screening requires uncovering hidden employee‑payee links while distinguishing suspicious from legitimate relationships. We formulate the task as inductive link prediction and entity ranking on synthetic human‑resources and enterprise‑resource‑planning (HR/ERP) graphs, each containing unseen organizations and a matched benign twin for every planted case.\ \ On 24 held‑out organizations and a prospectively frozen extension, we compare analyst rules, explicit path features, and graph neural networks (GNNs). A gradient‑boosted model using chained‑join features achieved the highest overall link average precision (AP) of 0.823, surpassing the GraIL‑style GNN’s 0.663; its 4‑hop AP was 0.646 versus the GNN’s 0.272, indicating that multi‑hop gains are not specific to GNNs.\ \ In a new synthetic cohort with 2.0% positive entities, chained‑join boosting again led (AP 0.798), and the relational‑entity GNN also outperformed record‑aware rules (0.707 vs 0.504). With a 2% review budget, their precisions were 0.695 and 0.602 respectively.\ \ When 40% identifier joins failed, the entity GNN ranked above chained‑join boosting (AP 0.712 vs 0.683, descriptively). Structure‑only auditing exposed a shortcut in the initial generator; matched twins reduced the audited twin‑pool AUROC to 0.493‑0.514.\ \ These results separate multi‑hop candidate discovery, record‑based discrimination, and review prioritization within an explicit synthetic evaluation design. Code and data are available from the authors on request.\ \ Review: The study provides a clear comparative view of rule‑based, path‑feature, and GNN approaches for payroll fraud detection on synthetic HR/ERP graphs, highlighting the importance of multi‑hop information and showing that GNNs are not the sole beneficiaries of such structure.

Original Source: https://arxiv.org/abs/2610.41085

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