Systems and methods for providing merchant fraud alerts

• US 10,438,206 B2
• Filed: 05/27/2015
• Issued: 10/08/2019
• Est. Priority Date: 05/27/2014
• Status: Active Grant

• Current Assignee: Toronto-Dominion Bank
• Original Assignee: Toronto-Dominion Bank
• Inventors: Jivraj, Salim, Van Heerden, Lauren, Cummins, Michael D., Sivashanmugam, Prabaharan, Jeschke, Gerald, Chak, Andrew, Stephenson, Mike, Chan, Paul Mon-Wah, Lee, John Jong Suk, Del Vecchio, Orin
• Primary Examiner(s): Fu, Hao
• Application Number:
  US14/723,331
• Publication Number:
  US 20150348042A1
• Time in Patent Office: 1,595 Days
• CPC Class Codes: G06Q 20/321 using wearable devices
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/326 Payment applications installed on the mobile devices
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing

Abstract

Mobile communications devices, systems and methods are provided for identifying a risk of fraudulent activity associated with a merchant before a user executes a transaction with the merchant. In an embodiment, a mobile communications device obtains first information identifying prior instances of fraudulent activity associated with a merchant. The mobile communications device may determine a level of risk of fraudulent activity associated with the merchant based on the obtained first information, and may identify, based on the determined risk level, one or more payment instruments and associated incentives appropriate for financial services transactions involving the merchant. The mobile communications device may present, to a user, a notification including the identified payment instruments and associated incentives prior to execution of a transaction between the user and the merchant.

Claims

1. A mobile communications device, comprising:

a display unit;

a communication interface;

a memory storing software instructions; and

one or more processors coupled to the display unit, to the communications unit, and to the memory, the one or more processors being configured to execute the software instructions to perform operations including;

receiving, from a computing system via the communications interface, first information indicative of one or more prior instances of fraudulent activity involving a merchant;

determining a risk level associated with the merchant based on the first information, the risk level being indicative of a probability of future instances of fraudulent activity involving the merchant;

detecting, via the communications interface, a wireless signal broadcast by a terminal device associated with the merchant;

in response to the detection of the wireless signal, generating and presenting, via the display unit, a notification observable by a consumer within a corresponding digital interface, the mobile communications device being operable by the consumer, the notification comprising a first notification portion representative of the determined risk level and a second notification portion identifying one of more payment instruments consistent with the determined risk level, and the presented first notification portion comprising a graphical icon associated with a visual characteristic that reflects the determined risk level; and

receiving, via the communications interface unit, second information that identifies a change in the determined risk level of the merchant; and

modifying, via the display unit, the visual characteristic of the presented graphical icon to reflect the change in the determined risk level.

2. The mobile communications device of claim 1, wherein:

the one or more identified payment instruments are appropriate for use in a financial services transaction involving the merchant; and

the one or more processors are further configured to perform operations including presenting the notification prior to at least one of (i) an execution of the financial services transaction or (ii) a specification of at least one of the identified payment instruments.

3. The mobile communications device of claim 1, wherein the one or more processors are further configured to perform operations including:

identifying a transaction amount associated with a financial services transaction involving the merchant;

determining that a combination of the identified payment instruments facilitate an execution of the financial services transaction in the identified transaction amount; and

presenting, via the display unit, information identifying the combination of the identified payment instruments within the second notification portion.

4. The mobile communications device of claim 1, wherein:

the software instructions comprise an executable mobile-wallet application; and

the one or more processors are further configured to perform operations including;

in response to the detection of the wireless signal, establishing communications with the terminal device; and

transmitting, to the terminal device via the communications interface, information instructing the terminal device to present the first or second notification portions through a corresponding digital interface.

5. The mobile communications device of claim 1, wherein:

the mobile communications device further comprises an embedded positioning system; and

the one or more processors are coupled to the embedded positioning system and further configured to perform operations including obtaining third information indicative of a current geographic position of the device from the embedded positioning system, at least a portion of the third information being obtained from the embedded positioning system at periodic intervals.

6. The mobile communications device of claim 5, wherein the one or more processors are further configured to perform operations including:

transmitting, via the communications interface, a request to obtain the first information to the computing system, the computing system being associated with at least one of a financial institution, at least one of a credit bureau, a law enforcement agency, a governmental entity, or a social networking entity; and

receiving first information from the computing system in response to the request.

7. The mobile communications device of claim 6, wherein the one or more processors are further configured to perform operations including transmitting the request at predetermined temporal intervals and without intervention from the consumer.

8. The mobile communications device of claim 5, wherein the one or more processors are further configured to perform operations including:

identifying a plurality of merchants disposed within the threshold distance of the current geographic position;

obtaining fourth information identifying one or more prior instances of fraudulent activity involving the identified merchants;

determining risk levels associated with the identified merchants based on the fourth information;

computing a first aggregate risk level based on the determined risk levels; and

identifying the one or more payment instruments based on the aggregate risk level, the identified payment instruments being appropriate for financial services transactions involving the identified merchants.

9. The mobile communications device of claim 8, wherein the one or more processors are further configured to perform operations including:

obtain information identifying at least one merchant or product characteristic, the at least one merchant or product characteristic being specified by the consumer;

determining that a subset of the identified merchants exhibit the at least one merchant or product characteristic, the subset being disposed within the threshold distance of the current geographic position;

identifying the risk levels associated with the subset of the identified merchants based on the obtained third information;

computing a second aggregate risk level based on the identified risk levels; and

presenting, via the display unit and within the corresponding interface, information identifying at least a portion of the identified merchants and the second aggregate risk level.

10. The mobile communications device of claim 5, wherein the one or more processors are further configured to perform operations including:

obtaining fourth information indicative of online activity of the consumer, the fourth information being obtained without intervention from the consumer; and

transmitting, via the communications interface, a request to obtain the first information to the computing system, the request comprising the positioning and activity information.

11. The mobile communications device of claim 10, wherein the one or more processors are further configured to perform operations including detecting the online activity associated with the consumer, the fourth information comprising an entry of at least one of a URL or an IP address into a web browser, and the online activity being detected without intervention from the consumer.

12. The mobile communications device of claim 10, wherein the one or more processors are further configured to perform operations including identifying the merchant based on at least a portion of the third information.

13. The mobile communications device of claim 1, wherein the first notification portion further comprises a textual representation of at least one of the determined risk level, a name of the merchant, a geographic location associated with the merchant, or a geographic region associated with the merchant.

14. The mobile communications device of claim 1, wherein the one or more processors are further configured to perform operations including:

obtaining image data associated with at least one of a digital image or a digital video; and

identifying the merchant based on the image data, wherein identifying the merchant based on the image data comprises performing at least one of an optical character recognition process or an image processing technique on the image data to identify the merchant.

15. The mobile communications device of claim 1, wherein the one or more processors are further configured to perform operations including:

load, from the memory, third information identifying a plurality of candidate payment instruments associated with the consumer;

identifying a subset of the candidate payment instruments that are consistent with the determined risk level; and

selecting one or more of the subset of candidate payment instruments as the identified payment instruments.

16. The mobile communications device of claim 1, wherein the one or more processors are further configured to perform operations including:

obtaining information correlating (i) candidate payments instruments to one or more reference levels of risk and (ii) candidate incentives to corresponding ones of the candidate payment instruments;

determining, based on the correlation information, that a subset of the candidate payment instruments are correlated to the determined risk level, and that a subset of the candidate incentives are correlated to the subset of the candidate payment instruments;

selecting one or more of the subset of candidate payment instruments as corresponding ones of the identified payment instruments; and

selecting one of more of the subset of candidate incentives as corresponding ones of the identified incentives.

17. The mobile communications device of claim 1, wherein the one or more processors are further configured to perform operations including:

load, from the memory, third information identifying one or more incentives associated with the identified payment instruments;

based on the third information, generating a third notification portion representing at least a portion of the identified incentives; and

presenting, via the display unit, the third notification portion within the corresponding digital interface.

18. The mobile communications device of claim 1, wherein the one or more processors are further configured to perform operations including:

computing an objective fraud risk score for the merchant based on the obtained first information;

modifying the computed objective fraud risk score in accordance with one or more subjective factors, the subjective factors comprising at least one of (i) a temporal variation in a reported instance of fraudulent activity involving the merchant, (ii) a level of cooperation of the merchant with police or judicial entities, or (iii) third information identifying a remedial action taken by the merchant;

determining whether the modified objective fraud risk score exceeds a threshold risk score; and

when the modified objective fraud risk score is determined not to exceed the threshold risk score, assigning a reduced level of risk to the merchant.

19. The mobile communications device of claim 1, wherein the one or more processors are further configured to perform operations including when the modified objective fraud risk score exceeds the threshold risk score, assigning an elevated level of risk to the merchant, the assigning comprising:

obtaining third information identifying objective fraud risk scores for a plurality of reference merchants; and

determining the elevated level of risk based on a comparison of the modified objective fraud risk score for the merchant and the objective fraud risk scores for the reference merchants.

20. The mobile communications device of claim 1, wherein:

the visual characteristic comprises a color of the graphical icon; and

the one or more processors are further configured to perform operations including;

establishing the color of the graphical icon in accordance with the determined risk level of the merchant; and

presenting, via the display unit, the graphical icon in accordance with the established color.

21. The mobile communications device of claim 20, wherein the one or more processors are further configured to perform operations including:

determining a modified risk level for the merchant based on the first and second information; and

modifying, via the display unit, the color of the presented graphical icon in accordance with the modified risk level, the color of the presented graphical icon being modified without input from the consumer.

22. The mobile communications device of claim 1, wherein the one or more processors are further configured to perform operations including:

establishing a proximity of the mobile communications device to the terminal device based on the detection of the wireless signal; and

in response to the established proximity, generating and presenting, via the display unit, the notification within the corresponding interface, the notification being generated and presented without input from the consumer.

23. The mobile communications device of claim 1, wherein:

the graphical icon that provides a graphical representation of the determined risk level of the merchant; and

the one or more processors are further configured to perform operations including;

establishing the visual characteristic for the graphical icon in accordance with the determined risk level of the merchant; and

presenting, via the display unit, the graphical icon in accordance with the established visual characteristic; and

modifying, via the display unit, the visual characteristic of the graphical icon to reflect the change in the determined risk level, the icon being presented, and the visual characteristic being modified, without input from the consumer.

24. The mobile communications device of claim 1, wherein the at least one of the presented first or second notification portions obscures an element of graphical content presented within the corresponding interface.

25. A system, comprising:

a communications interface;

a memory storing software instructions; and

one or more processors coupled to the communications unit and to the memory, the one or more processors being configured to execute the software instructions to perform operations including;

obtaining first information identifying a prior instance of fraudulent activity involving a merchant;

determining a risk level associated with a merchant based the obtained first information, the risk level being indicative of a probability of future instances of fraudulent activity involving the merchant;

generating notification data characterizing the determined risk level; and

transmitting, via the communications interface, the notification data to a device operable by a consumer,

wherein the notification data instructs the device to;

detect, via a communications unit, a wireless signal broadcast by a terminal device associated with the merchant;

in response to the detection of the wireless signal, generate and present, via a display unit, a notification observable by the consumer within a corresponding digital interface, the notification comprising a first notification portion representative of the determined risk level and a second notification portion identifying one or more payment instruments that are consistent with the determined risk level, the presented first notification portion comprising a graphical icon associated with a visual characteristic that reflects the determined risk level; and

in response to second information that identifies a change in the determined risk level of the merchant, modify, via the display unit, the visual characteristic of the presented graphical icon to reflect the change in the determined risk level.

26. The system of claim 25, wherein the notification data further instructs the device present the notification prior to an execution of the financial services transaction.

27. The system of claim 25, wherein the one or more processors are further configured to perform operations including:

obtaining third information identifying a plurality of candidate payment instruments associated with the consumer;

identifying a subset of the candidate payment instruments based on the determined risk level; and

selecting one or more of the subset of candidate payment instruments as the identified payment instruments.

28. The system of claim 25, wherein the one or more processors are further configured to perform operations including:

obtaining third information correlating candidate payments instruments to one or more reference levels of risk;

determining, based on the third information, that a subset of the candidate payment instruments are correlated to the determined risk level; and

selecting one or more of the subset of candidate payment instruments as corresponding ones of the identified payment instruments.

29. The system of claim 25, wherein the one or more processors are further configured to perform operations including:

identifying one or more incentives associated with the identified payment instruments;

generating additional notification data associated with the identified incentives; and

transmitting, via the communications interface, the additional notification data to the device, the additional notification data instructing the device to generate and present, via the display unit, a third notification portion representative of the identified incentives within the corresponding interface.

30. The system of claim 25, wherein the one or more processors are further configured to perform operations including:

obtaining third second information indicative of a current geographic position of the device, at least a portion of the second information being obtained from the device at periodic intervals; and

identifying the merchant based on the obtained second third information, the merchant being disposed within a threshold distance of the current geographic position.

31. The system of claim 30, wherein the one or more processors are further configured to perform operations including:

identifying a plurality of merchants disposed within the threshold distance of the current geographic position;

obtaining fourth information identifying one or more prior instances of fraudulent activity involving the identified merchants;

determining risk levels associated with the merchants based on the fourth information;

computing a first aggregate risk level based on the determined risk levels; and

identifying the one or more payment instruments based on the aggregate risk level, the identified payment instruments being appropriate for financial services transactions involving the identified merchants.

32. The system of claim 31, wherein the one or more processors are further configured to perform operations including:

obtain fourth information identifying at least one merchant or product characteristic, the at least one merchant or product characteristic being specified by the consumer;

determining that a subset of the identified merchants exhibit the at least one merchant or product characteristic, the subset being disposed within the threshold distance of the current geographic position;

identifying the risk levels associated with the subset of the identified merchants based on the obtained third information;

computing a second aggregate risk level based on the identified risk levels; and

transmitting, to the device via the communications interface, additional notification data identifying the subset of the identified merchants and the second aggregate risk level, the additional notification data instructing the device to present, via the display unit and within the corresponding interface, additional notification portions representative of the subset of the identified merchants and the second aggregate risk level.

33. The system of claim 25, wherein the one or more processors are further configured to perform operations including:

obtaining at least one of (i) third information identifying an online activity of the consumer or (ii) image data associated with at least one of a digital image or a digital video, the third information comprising at least one of a URL or an IP address; and

identifying the merchant based on the third information or the image data, wherein identifying the merchant based on the image data comprises performing at least one of an optical character recognition process or an image processing technique on the image data to identify the merchant.

34. The system of claim 25, wherein the one or more processors are further configured to perform operations including:

computing an objective fraud risk score for the merchant based on the obtained first information;

modifying the computed objective fraud risk score in accordance with one or more subjective factors, the subjective factors comprising at least one of (i) a temporal variation in a reported instance of fraudulent activity involving the merchant, (ii) a level of cooperation of the merchant with police or judicial entities, or (iii) third information identifying a remedial action taken by the merchant;

determining whether the modified objective fraud risk score exceeds a threshold risk score; and

when the modified objective fraud risk score is determined not to exceed the threshold risk score, assigning a reduced level of risk to the merchant.

35. The system of claim 25, wherein the one or more processors are further configured to perform operations including when the modified objective fraud risk score exceeds the threshold risk score, assigning an elevated level of risk to the merchant, the assigning comprising:

obtaining third information identifying objective fraud risk scores for a plurality of reference merchants; and

determining the elevated level of risk based on a comparison of the modified objective fraud risk score for the merchant and the objective fraud risk scores for the reference merchants.

36. A computer-implemented method, comprising:

receiving, using at least one processor of a mobile communications device, first information indicative of one or more prior instances of fraudulent activity involving a merchant, the mobile communications device being operable by a consumer;

determining, using the at least one processor, a risk level associated with a merchant based on the first information, the risk level being indicative of a probability of future instances of fraudulent activity involving the merchant;

detecting, using the least one processor, a wireless signal broadcast by a terminal device associated with the merchant;

in response to the detection of the wireless signal, generating and presenting, using the at least one processor, and via a display unit, a notification observable by the consumer within a corresponding digital interface, the notification comprising a first notification portion representative of the determined risk level and a second notification portion identifying one of more payment instruments consistent with the determined risk level, the presented first notification portion comprising a graphical icon associated with a visual characteristic that reflects the determined risk level; and

receiving, using the at least one processor, second information that identifies a change in the determined risk level of the merchant; and

modifying, using the at least one processor, and via the display unit, the visual characteristic of the presented graphical icon to reflect the change in the determined risk level.