Beyond Smoothing: A Discriminative Enhanced Aggregation Graph Neural Network for Camouflaged Fraud Detection

Graph Neural Networks (GNNs) have been widely used for learning representations of graph-structured data, achieving remarkable success in various graph-related Web applications, such as fraud detection. To generate node representations, GNN-based models operate message-passing mechanisms that aim to smooth the learned representations in a local neighborhood. However, fraudsters increasingly employ sophisticated ”camouflage” tactics, exhibiting normal behaviors by strategically forming numerous connections with legitimate entities. As a result, existing GNN-based methods struggle to effectively tackle such fraudulent activities due to their reliance on homophily-based message-passing architectures. These methods fail to generate discriminative representations, which is crucial for distinguishing fraudsters from benign entities. To address this problem, we propose a novel D iscriminative E nhanced Aggregation Graph Neural Network-based F raudD E tectio N Mo D el, called DEFEND for short. DEFEND incorporates tailored discriminative mechanisms that strengthen representation learning at two complementary levels: i) intra-relation and ii) inter-relation. While prior approaches primarily focus on intra-relation patterns and overlook inter-relation information, DEFEND integrates both to capture subtle inconsistencies in fraudster behavior. Specifically, an edge discriminating mechanism classifies neighborhoods into homophily or heterophily-based views by leveraging node attributes and structural characteristics, and a camouflage-aware dual-channel aggregation module captures different frequencies of information tailored to these views to generate rich intra-relation node representations. While prior approaches typically rely on intra-relation information within each relation type, they overlook the discriminative signals that arise from correlations across different relations. In DEFEND, we observe that fraudsters often avoid forming consistent cross-relation interactions, whereas benign entities tend to establish them more frequently. This discrepancy creates a distinctive behavioral pattern. To capture this, we introduce an inter-relation correlation mechanism that correlates a node's intra-relation representations across multiple relation types using an attention-based weighting scheme. By adaptively weighing the importance of each relation and integrating their contributions, DEFEND enhances the discriminative power of node representations. This mechanism enables the model to leverage both intra-relation and inter-relation levels of information, leading to richer and more robust representations for fraud detection. Finally, a multi-relation combination module aggregates information across different relation types, emphasizing the importance of node–relation pairs in the embedding. We conducted extensive experiments on two real-world fraud datasets to demonstrate the effectiveness of our proposed model, and our results show that DEFEND outperforms the state-of-the-art baselines. The source codes and datasets of our work are available at https://github.com/VenusHaghighi/DEFEND .