Fraud Detection near-cache example

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An example demonstrating how a near-cache configuration option can be added to an existing application to improve performance.

Performance increases, no coding is required.

But it’s not a universally applicable solution, there are downsides to be aware of.

What is a “near-cache” ?

Hazelcast provides a number of distributed storage containers, for storing data in the grid. The most universal of these are the IMap and JSR107’s JCache, where the contents are spread across the nodes in the grid.

If you have ten nodes then each holds 1/10th of the total data content. This is great for scaling. If data grows by 10%, you can just add an eleventh node and Hazelcast will rebalance the data across the eleven nodes. Now each has 1/11th of the total data content but crucially each is responsible for about the same amount of data as it was before the growth.

One obvious benefit from the data grid then is capacity. You can hold more data in memory than any one node can cope with, and merely add or remove nodes from the grid to adjust capacity.

The hidden downside is network transfer. If you want an item of data that is stored in the grid, you need to move it across the network from the node on which it is stored to the place where it is needed. This takes time, and the time is influenced by the size of the data and speed of the network. The network transfer time really should be fast, but if you make lots and lots of calls, it all mounts up.

Normally once you’ve read such a piece of data you discard it. The “read” call results in the data being copied across the network to the local process, then being used, and then dereferenced.

What a near-cache adds is a form of local storage.

When you request a data record, it is transferred from the node where it is stored to the process that requested it. What a near-cache does is retain the data record on the process that requested it. If that process makes a second request for that data record, it is already held locally so doesn’t have to be retrieved from the node that holds it. So, it is cached near to where it is used.

Note that this doesn’t change where the original data record is stored in the grid, what it is doing is making another copy somewhere else.

This is a classic caching pattern. When the first call is made to read the data record, this is a cache-miss and the data is retrieved from the node that has it remotely. When the second call is made to read the data record, this is a cache-hit and the data is immediately available. A third call is also a cache-hit, as is a fourth, and as more and more calls are made the average for the retrieval time reduces.

When near-caches are good

  • A near-cache vends a local copy of the data to the requestor rather than the master copy.

This gives excellent performance when the same item of data is read repeatedly. The local copy is used rather than the remote copy, network transfer is eliminated, and the retrieval time drops to effectively zero.

  • When the data reads are non-uniform

Typically a near-cache is a subset of the remote data, there is not room to store everything. This gives benefit if some records are read more frequently than others, there is a pattern of localisation.

Ideally there is a small percentage of data that is frequently used, following some sort of pareto distribution. For large datasets it isn’t realistic for the near-cache to hold everything, but excellent performance can be obtained if the subset that is used most frequently is of moderate size.

When near-caches are bad

  • A near-cache vends a local copy of the data to the requestor rather than the master copy. This may differ from the master copy if the master copy changes — the near-cache copy is not immediately updated when the master copy updates.

So the near-cache data should be viewed as potentially stale.

This is the trade-off, but may be unacceptable for some applications.

  • A near-cache is essentially an optimization for reads, to eliminate network calls. Data writes must update the master copy so network calls cannot be avoided.

A near-cache on data that is mainly being written might give no performance benefit in eliminating network calls. While this might appear to be a neutral use-case, it is actually detrimental as the near-cache is using up resources on the process that has it.

  • Performance with a near-cache is not uniform or predictable. Items that are in the near-cache are available instantly and ones that aren’t have to be retrieved which incurs a delay.

This then gives varying performance to the calling applications, which may in rare occasions be unacceptable. For example, a first call may miss an SLA and the second doesn’t.

Why are near-caches not updated synchronously ?

Hazelcast supports multiple clients. Client A might update a data record in the grid that client B, C and D all have copies of in their near-caches.

To update the near-cache synchronously would require that clients B, C and D in this example would all have to confirm their near-caches have been updated before the update initiated by client A could complete. This would significantly slow the response time for client A.

Configuration

There are numerous configuration options for the near-cache, described in the Hazelcast documentation. See here

The example – Fraud Detection

When a credit or debit card transaction is made at an ATM, shop or whatever, various checks take place to approve or decline the transaction. Some are straightforward such as does the person have sufficient funds, and others are more heuristic in nature to detect suspicious or criminal activity.

For this example, transactions are limited to those taking place at airports, and the Bank of Hazelcast is validating these based on geographic location.

The business logic here is that fraudulent activity is confirmed if the time between a person’s transactions is unrealistic for the location of these transactions.

Simply, if you make a transaction in London and three hours later make another transaction in Paris that is possible. The flying time is under two hours, enough time to make a transaction in London, board a plane, get off and make a transaction in Paris.

If you make another transaction in Johannesburg three hours after that, that is impossible so indicates fraudulent card use. The flying time from Paris to Johannesburg is more than ten hours, so there’s no way the real cardholder could make a transaction in those two locations three hours apart.

Why is a near-cache relevant ?

As we’ll see from the example, the near-cache makes the business logic execute faster.

A higher rate of processing means other checks can also be done in the same time frame, resulting in a higher percentage of suspicious transactions being identified.

The near-cache contains the airport locations. There aren’t many airports in the world, and obviously their locations won’t change, so concerns about stale content aren’t relevant.

Example structure

The example is structured in 5 modules:

├── fraud-detection-common/
├── fraud-detection-server/
├── fraud-detection-client-common/
├── fraud-detection-client-without/
├── fraud-detection-client-with/
├── pom.xml
├── README.md

fraud-detection-common

This module defines common objects for the data model, for storing Airports and Users.

fraud-detection-server

This module defines a Hazelcast server, that has the data model classes on it’s classpath and is built into an executable Jar file by Spring Boot. This makes it easy to run from the command-line or to deploy to cloud-based containers.

In the TestData class are the latitudes and longitudes of 20 airports from around the world. This data is loaded into the “airports” map by the first server in the cluster to start.

fraud-detection-client-common

This module is shared by the two client modules below.

All the work happens in fraud-detection-client-common/src/main/java/com/hazelcast/samples/nearcache/frauddetection/FraudService.java.

What this does is generate a series of 1,000,000 transactions.

For each of these, a user is randomly selected from a small selection of 10 users and an airport is randomly selected from a small selection of 20 airports around the world.

This simulates a credit or debit card transaction, a person uses their card at an airport and we need to validate this.

Validation is to look for the previous airport they used their card at. We calculate the distance between these two airports, and decide if this is reasonable or not.

For example, imagine a person last used their card in New York. If three hours later they attempt to use it in Washington is this reasonable ? Well, the distance is 226 miles / 364 kilometres, definitely possibly by plane. So this alone would not be a reason to reject the transaction.

Now imagine the same person tries to use their card in Zurich three hours after that. Zurich is 4151 miles / 6681 kilometres, definitely not possibly by plane. So this is a reason to alert.

That’s all there is to the test, how quickly can we process the transactions.

fraud-detection-client-without

This is a module for a client without a near-cache, packaged by Spring Boot to be an executable Jar file to run from the command line.

It has a hazelcast-client.xml with the minimal details necessary to connect to the cluster. When it starts it runs the fraud detection test suite located in the fraud-detection-client-common module.

fraud-detection-client-with

This is a module for a client with a near-cache.

It is almost identical to fraud-detection-client-without, except that it’s hazelcast-client.xml specifies a near-cache.

These are the lines that are added:

<near-cache name="airports">
        <eviction eviction-policy="LFU" max-size-policy="ENTRY_COUNT" size="10"/>
     </near-cache>

A near-cache is defined on the “airports” map. It keeps the most frequently used 10 entries.

Running the example

Use mvn install to build the example.

The example uses Maven to replace properties in the fraud-detection-client-common module, and uses Spring Boot to build executable Jar files for the clients and server. These need Maven to run at least as far as the “package” phase, but generally “install” is clearer.

Randomness

This example uses Java’s random number generator, and exploits the algorithm.

The build timestamp from Maven is used as the seed for the random number generator.

Look in fraud-detection-client-common/target/classes/application.properties and you should see something like build.timestamp=20170928200928.

What this means is the seed is fixed (unless you recompile). Java’s random function, when primed with a seed, generates a specific sequence of numbers that appear to be random. If you repeat the seed, you get the same sequence.

This is useful here, as both clients use the build timestamp, so have the same sequence of transactions generated. This makes exact comparisons possible.

Starting the grid

In this example, the servers in the grid do nothing except provide data to the clients. There is no server side processing.

You need to run at least one server in the grid, and for this example that is all that is needed.

Start this server using:

java -jar fraud-detection-server/target/fraud-detection-server.jar

You should get output like the below:

2017-09-28 20:59:37.934 INFO 5959 --- [ main] com.hazelcast.cluster.impl.TcpIpJoiner : [127.0.0.1]:5701 [dev] [3.8]
    
    Members [1][1] { 
                 Member [127.0.0.1]:5701 - 211b3cef-2303-4b50-b9d2-ece1c1bb0881 this 
    }
    
    2017-09-28 20:59:37.985 INFO 5959 --- [      main] com.hazelcast.core.LifecycleService     : [127.0.0.1]:5701 [dev] [3.8] [127.0.0.1]:5701 is STARTED 
    2017-09-28 20:59:38.244 INFO 5959 --- [      main] o.s.j.e.a.AnnotationMBeanExporter       : Registering beans for JMX exposure on startup 
    2017-09-28 20:59:38.340 INFO 5959 --- [      main] c.h.i.p.impl.PartitionStateManager      : [127.0.0.1]:5701 [dev] [3.8] Initializing cluster partition table arrangement... 
    2017-09-28 20:59:38.425 INFO 5959 --- [      main] c.h.s.n.frauddetection.MyInitializer    : Loaded 20 into 'airports' 
    2017-09-28 20:59:38.429 INFO 5959 --- [      main] c.h.s.n.frauddetection.Application      : Started Application in 4.726 seconds (JVM running for 5.294)

In the second last line above, Loaded 20 into 'airports' confirms that test data has been loaded for the airports.

If you want, you can start more servers using the same command. They should select different points and join together.

When the first server starts, it populates itself with test data for airports in the “airports_” map. If a second, third or more servers are started, they will not repeat the data load.

Starting a client without near-caching

Once the grid is up and running, use this command to run the client without near-cache:

java -jar fraud-detection-client-without/target/fraud-detection-client-without.jar

The client will connect to the grid, apply a series of “financial transactions” and then shut down.

Add it runs, it will log out the first few suspicious transactions it spots, and this might look like:

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 
    ~~~           A L E R T           ~~~ 
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 
    ~~~ User : '8'
    ~~~ Only three hours between card used at
    ~~~ Paris Charles De Gaulle
    ~~~ Washington Dulles
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 
    ~~~           A L E R T           ~~~ 
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 
    ~~~ User : '7'
    ~~~ Only three hours between card used at
    ~~~ Madrid
    ~~~ New York John F Kennedy
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 

The transactions are randomly generated, so you will likely see different user ids and airports. For example, only three hours gap between using a credit or debit card in Madrid and New York is pretty much impossible for civil aircraft.

When it shuts down, it will report final tally figures for how it performed.

These could look like this:

    ===================================== 
    ===         R E S U L T S         === 
    ===================================== 
    === Map : 'airports'
    ===  Calls............. : '1899542'
    ===  Alerts............ : '390273'
    ===================================== 
    ===  Run time for tests : 'PT5M55.963S'
    ===================================== 
    2017-09-28 21:10:13.851  INFO 6118 --- [           main] c.h.s.n.frauddetection.Application       : Started Application in 358.551 seconds (JVM running for 359.113)

The exact figures depend obviously on the strength of the machine you run this on. Think of them more as a baseline to compare against the next step.

In this example 1,899,542 calls were made from the client to the server for the airports (as there is no near cache). Total run time was 358 seconds, so almost exactly 6 minutes.

Starting a client with near-caching

Once the grid is up and running, use this command to run the client with a near-cache:

java -jar fraud-detection-client-with/target/fraud-detection-client-with.jar

This client will connect to the grid, run the exact same processing as the previous client, and produce it’s final performance results.

Again, alerts are generated the first few are logged to the screen:

    ~~~ A L E R T ~~~ 
    
    ~~~ User : '8'
    ~~~ Only three hours between card used at
    ~~~ Paris Charles De Gaulle
    ~~~ Washington Dulles
    
    
    ~~~ A L E R T ~~~
    
    ~~~ User : '7'
    ~~~ Only three hours between card used at
    ~~~ Madrid
    ~~~ New York John F Kennedy

Note here this is the same series of alerts. The ‘random‘ series of transactions uses the same seed remember for both clients, so generates the same transactions for each build.

As this client has a near-cache, we are expecting a beneficial effect on performance. The final results prove it.

    ===================================== 
    ===         R E S U L T S         === 
    ===================================== 
    === Map : 'airports'
    ===  Calls............. : '1899542'
    ===  Alerts............ : '390273'
    ===  Near-cache hits... : '989393'
    ===  Near-cache misses. : '910149'
    ===================================== 
    ===  Run time for tests : 'PT4M20.652S'
    ===================================== 
    2017-09-28 21:04:08.765  INFO 5960 --- [           main] c.h.s.n.frauddetection.Application       : Started Application in 263.292 seconds (JVM running for 264.269)

Again, 188,952 calls were made, but 989,393 of these were satisfied by the near-cache. The near-cache in the hazelcast-client.xml for this process is sized at 10, and the test data has 20 airports. Given we are randomly selecting with a uniform distribution amongst airports, this is as you might expect.

Run time is 264 seconds, 4.5 minutes, quite a reduction from 6 minutes. Although we have halfed the calls to the server for airports, we still have to call the server for users, so run time overall does not half.

Try varying the parameters of the near-cache (in the hazecast-client.xml file) to see how the performance varies.

Increasing the size of the near-cache will always improve the hit rate, so this is the wrong statistic to focus on for size. What matters is the throughtput, how many requests are serviced.

If the overall performance improves, then the near-cache was too small. If the overall performance degrades, then the near-cache was too big — it’s size is causing the JVM to run garbage collection work alongside the Hazelcast client application, meaning that the Hazelcast client application gets a lesser share of the JVM resources and so achieves less.

Other considerations

Eviction and expiry

For best responses, the near-cache should hold every data record in the underlying data store, rather than just a subset.

However, this is only practical for small data sets. In all other cases, the eviction and expiry configuration options need to be used to constrain the memory usage of the near-cache.

Querying

Queries do not use the near-cache. The near-cache may in general only contain a subset of of the data so would give incorrect results to query, if all items had not yet been loaded or insufficient space to hold all items existed.

Server-side

In this example, the near-cache is on a client-side process, that connects to the Hazelcast data grid but is not responsible itself for hosting any data.

Near-caches can also be used on server-side processes, the nodes in the data grid. Such a server process would then be both responsible for hosting it’s share of the data and also the near-cache copy of data that process was actually using.

Apart from a few optimizations, the concept is the same — the near-cache is copy of data that is elsewhere. The difference is in memory usage, the process already has data in memory apart from the near-cache, so needs careful sizing to ensure there is enough for both.

Summary

A near-cache is a second level cache, a local copy of data held in the main Hazelcast grid. The main Hazelcast grid is the first level cache, perhaps of data that resides in a relational database on disk. So a near-cache can be viewed as a cache of a cache.

Anything where a local copy exists accelerates read calls, as network transmission times are eliminated.

Anything where a local copy exists means a temporary mismatch when the remote copy changes. A “stale” read has to be tolerable to the application until the local copy is refreshed.

A near-cache is easy configuration to add after development, and to tune to get the best hit-ratio.

In this example, run-time was reduced by 25%. Exact results will vary due to factors like machine speed, network speed and so on. Nevertheless, a 25% gain for 3 lines in a config file is highly desirable.

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