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This research addresses the challenge of generating human-readable explanations for fraud detection by integrating graph structure with large language models through an agentic navigation framework. The authors introduce a novel evaluation rubric focused on faithfulness and graph grounding, utilizing trajectory distillation to train agents that progressively disclose relevant neighbor records rather than processing entire neighborhoods. Experimental results across three datasets confirm consistent improvements over existing baselines, offering a more granular and interpretable approach to risk labeling in complex network data.
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FRACTION: Fraud Explanation Generation via Agentic Graph Context Navigation

arXiv2 min read

arXiv:2610.18023v1 Announce Type: new Abstract: Graph fraud explanation generation emerges as an important task, which requires jointly leveraging graph structure and content information to produce human-readable explanations for a given risk label. An intuitive approach is to adapt existing graph-enhanced large language models (LLMs), which inject graph structure into LLMs via graph-conditioned instruction tuning or structure-aware embeddings. However, existing methods face two key challenges in graph fraud explanation generation: a lack of evaluation protocols tailored to explanation quality, and a mismatch between the granularity of graph information they provide and what explanation generation requires. In this paper, we propose FRaud Explanation Generation via Agentic Graph Context NavigaTION (FRACTION), a framework for graph fraud explanation generation. To evaluate explanation quality, we introduce a task-specific rubric that assesses faithfulness, graph grounding, helpfulness, consistency, and conciseness, and validate it against human judgments. To focus on fine-grained details of relevant neighbors without reading the entire neighborhood, we equip a language model with graph tools that progressively disclose neighbor records. To train our graph agent, we propose a rubric-guided trajectory distillation strategy through which the agent learns both tool-use behavior and structured explanation generation. Experimental results on three fraud datasets demonstrate consistent improvements over state-of-the-art baselines under a human-aligned rubric.

Abstract:Graph fraud explanation generation emerges as an important task, which requires jointly leveraging graph structure and content information to produce human-readable explanations for a given risk label. An intuitive approach is to adapt existing graph-enhanced large language models (LLMs), which inject graph structure into LLMs via graph-conditioned instruction tuning or structure-aware embeddings. However, existing methods face two key challenges in graph fraud explanation generation: a lack of evaluation protocols tailored to explanation quality, and a mismatch between the granularity of graph information they provide and what explanation generation requires. In this paper, we propose FRaud Explanation Generation via Agentic Graph Context NavigaTION (FRACTION), a framework for graph fraud explanation generation. To evaluate explanation quality, we introduce a task-specific rubric that assesses faithfulness, graph grounding, helpfulness, consistency, and conciseness, and validate it against human judgments. To focus on fine-grained details of relevant neighbors without reading the entire neighborhood, we equip a language model with graph tools that progressively disclose neighbor records. To train our graph agent, we propose a rubric-guided trajectory distillation strategy through which the agent learns both tool-use behavior and structured explanation generation. Experimental results on three fraud datasets demonstrate consistent improvements over state-of-the-art baselines under a human-aligned rubric.

Machine Learning (cs.LG)

arXiv:2610.18023 [cs.LG]

(or arXiv:2610.18023v1 [cs.LG] for this version)

https://doi.org/10.48550/arXiv.2610.18023 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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Full text under the publisher's open licence · 294 words

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