1. Formalization of Trust, Fraud, and Vulnerability Analysis
Bharat Bhargava,
Leszek Lilien,
Yuhui Zhong, Yi Lu, Yunhua Lu
Department of Computer Sciences
Purdue University

2. Trust-related research questions
Formalization of trust
Formalization of evidence
Evidence identification for trust evaluation and prediction
Design of evidence collection mechanisms
Trust evaluation based on multiple types of evidences
Mechanisms to build trust
How to motivate trustor?
Insurance mechanisms and escrow services
How to motivate trustee?
Monitor-and-punish and incentive-based mechanisms
Evaluation methods for trust

3. Progress and results
Developed an evidence model that accommodates credentials of different formats and supports evaluation of reliability of evidence [1]
Designed a classification algorithm for building user-role profiles in a trust environment [2]
Proposed a framework for adaptive trust assessment [3]
Developed and implemented four trust production rules [3]
Proposed a user behavior models to evaluate trust assessment approaches [3]
Designed and partially implemented a trust-enhanced role mapping server that cooperates with RBAC mechanisms to solve authorization problems in open environments [1]

4. Fraud-related research questions
Fraud formalization
Categorize fraudsters
Formalize deceiving intentions
Fraud prevention
Is the issue of resistance of biometric authentication to attack an important question for fraud prevention?
Analyze fraud scenarios to construct states and transition actions for state transition analysis
Hinder transitions from normal states to potential fraud states
Fraud detection
Behavior patterns to profile and monitor
Identify patterns classified as anomalous
Avoid false alarms, especially as patterns evolve over time
Design rule generation algorithms to automatically discover fraud rules and to select fraud rule sets with comprehensive coverage, small size, and the required level of accuracy

5. Progress and results Modeled three deceiving intentions [4]
Developed a deceiving intention prediction algorithm [4]
Proposed an approach for swindler detection and an architecture realizing the approach [4]
Derived an equilibrium bidding strategy for honest bidders in an English auction existing multiple bidding and shill bidding [5]
Developed a token-based model for fraud detection and prevention [6]
Shown experimentally that false alarm rate is reduced in token-based model compare to cost-based model [6]

6. Vulnerability-related research issues
Vulnerability and threat analysis
Analyze vulnerabilities and threats in database systems
Solutions for threat avoidance
Solutions for threat tolerance
Analysis of computer security paradigms and effectiveness of methods and tools based on them
Interplay of vulnerabilities, trust, and fraud
Use trust to avoid/tolerate vulnerabilities and threats
Reciprocally, use vulnerability and threat avoidance or tolerance to increase trust among peers
Use analysis of trust, vulnerabilities and threats to reduce fraud (via prevention, detection and tolerance)

7. Progress and results
Searched vulnerability databases (ICAT, CERT/CC, SecurityFocus, MITRE/CVE, CIRDB, MS, Oracle) [7]
Identified vulnerabilities impacting database integrity (MS, Oracle) [7]
Performing analysis of the vulnerabilities [7]
Performing analysis of computer security paradigms (identifying, classifying, etc.) [8]
Working on a new security paradigm for information security based on trust [8]

8. References
B. Bhargava and Y. Zhong, "Authorization Based on Evidence and Trust,” in Proc. of Data Warehousing and Knowledge Discovery Conf. (DaWaK), Sept
E. Terzi, Y. Zhong, B. Bhargava, Pankaj, and S. Madria, "An Algorithm for Building User-Role Profiles in a Trust Environment,” in Proc. of Data Warehousing and Knowledge Discovery Conf. (DaWaK), Sept
Y. Zhong, Y. Lu, and B. Bhargava, "Dynamic Trust Production Based on Interaction Sequence," Technical Report, CSD-TR , Dept. of Computer Sciences, Purdue University, March 2003.
B. Bhargava, Y. Zhong, and Y. Lu, "Fraud Formalization and Detection,” in Proc. of Data Warehousing and Knowledge Discovery Conf. (DaWaK), Sept
B. Bhargava, M. Jenamani, and Y. Zhong, "Impact of Privacy Violation on the Fairness of Internet Auctions," submitted for publication.
Y. Lu, L. Lilien, and B. Bhargava, "A Token-based Model for Fraud Detection and Prevention,” Working Paper, Dept. of Computer Sciences, Purdue U., Sept
L. Lilien, T. Morris, and A. Savoy, "Analysis of Data Integrity Vulnerabilities, " Working Paper, Dept. of Computer Sciences, Purdue University, Sept
L. Lilien and A. Bhargava, "From Vulnerabilities to Trust: A Road to Trusted Computing ," to appear in Proc. of Intl. Conf. on Internet, Processing, Systems, Interdisciplinaries (IPSI), Sv. Stefan, Serbia and Montenegro, Oct