Improving the Accuracy of Transaction-Based Ponzi Detection on Ethereum

• URL: http://arxiv.org/abs/2308.16391v2
• Date: Thu, 18 Jul 2024 03:05:50 GMT
• Title: Improving the Accuracy of Transaction-Based Ponzi Detection on Ethereum
• Authors: Phuong Duy Huynh, Son Hoang Dau, Xiaodong Li, Phuc Luong, Emanuele Viterbo,
• Abstract summary: Ponzi scheme, an old-fashioned fraud, is now popular on the blockchain. Most Ponzi detection methods detect a Ponzi scheme based on its smart contract source code. We propose a new set of 85 features (22 known account-based and 63 new time-series features) which allows machine learning algorithms to achieve up to 30% higher F1-scores.
• Score: 13.233535179219633
• License: http://creativecommons.org/licenses/by/4.0/
• Abstract: The Ponzi scheme, an old-fashioned fraud, is now popular on the Ethereum blockchain, causing considerable financial losses to many crypto investors. A few Ponzi detection methods have been proposed in the literature, most of which detect a Ponzi scheme based on its smart contract source code. This contract-code-based approach, while achieving very high accuracy, is not robust because a Ponzi developer can fool a detection model by obfuscating the opcode or inventing a new profit distribution logic that cannot be detected. On the contrary, a transaction-based approach could improve the robustness of detection because transactions, unlike smart contracts, are harder to be manipulated. However, the current transaction-based detection models achieve fairly low accuracy. In this paper, we aim to improve the accuracy of the transaction-based models by employing time-series features, which turn out to be crucial in capturing the life-time behaviour a Ponzi application but were completely overlooked in previous works. We propose a new set of 85 features (22 known account-based and 63 new time-series features), which allows off-the-shelf machine learning algorithms to achieve up to 30% higher F1-scores compared to existing works.

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