System and method for detecting fraudulent transactions
First Claim
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1. A method for detecting fraudulent transactions between a customer and a vendor comprising:
- (a) receiving a plurality of transaction parameters from said vendor, said plurality of transaction parameters representing at least one transaction of at least one commodity between said customer and said vendor;
(b) computing a first score as a function of said at least one commodity;
(c) computing a second score as a function of a first one or more of said plurality of transaction parameters;
(d) computing a fraud score based on said first and second scores; and
(e) indicating to said vendor that said at least one transaction is fraudulent if said fraud score exceeds a first pre-determined threshold.
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Abstract
A system for detecting fraudulent transactions is disclosed. The system breaks the transaction down into its component parameters. A first score is computed depending on the propensity of the transacted commodity to be involved in fraud. A second score is computed as a function of the authentication of the remaining parameters of the transaction. A total fraud score is computed from the first score and the second score and compared against a fraud threshold to determine the likelihood of the transaction being fraudulent.
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Citations
55 Claims
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1. A method for detecting fraudulent transactions between a customer and a vendor comprising:
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(a) receiving a plurality of transaction parameters from said vendor, said plurality of transaction parameters representing at least one transaction of at least one commodity between said customer and said vendor;
(b) computing a first score as a function of said at least one commodity;
(c) computing a second score as a function of a first one or more of said plurality of transaction parameters;
(d) computing a fraud score based on said first and second scores; and
(e) indicating to said vendor that said at least one transaction is fraudulent if said fraud score exceeds a first pre-determined threshold. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28)
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29. A fraud detection processor comprising:
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a receiver operative to receive a plurality of transaction parameters from a vendor, said plurality of transaction parameters representing at least one transaction of one or more commodities between a customer and said vendor;
a first score processor coupled with said receiver and operative to compute a first score as a function of each of said one or more commodities;
a second score processor coupled with said receiver and operative to compute a second score as a function of each of a first one or more of said plurality of transaction parameters;
a fraud score processor coupled with said first and second score processors and operative to compute a fraud score as a function of said first and second scores;
fraud determination logic coupled with said fraud score processor and operative to compute a determination of whether said at least one transaction is fraudulent as a function of a comparison of said fraud score and a first pre-determined threshold and further operative to indicate said determination to said vendor. - View Dependent Claims (30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49)
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50. A computer implemented system for detecting fraudulent transactions between a customer and a vendor comprising:
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a positive database comprising data representing past non-fraudulent transactions known to said vendor;
a negative database comprising data representing past known fraudulent transactions;
one or more transaction databases comprising consumer and geographic transaction information;
a commodity database comprising data representing valuation and propensity to incite fraudulent activity for a plurality of commodities;
transaction logic operative to receive a transaction of a commodity from a vendor and decompose said transaction into a plurality of transaction parameters;
result logic operative to send an indication to said vendor whether said transaction is fraudulent and non-fraudulent;
valuation logic coupled with said transaction logic, said result logic and said commodity database and operative to compute the total value of said transaction and cause said result logic to indicate that said transaction is non-fraudulent if said total value is less than a first pre-determined threshold;
comparison logic coupled with said transaction logic, said result logic and said positive database and operative to compare said transaction with said positive database and cause said result logic to indicate that said transaction is non-fraudulent if said transaction matches in said positive database; and
fraud logic coupled with said transaction logic, said result logic and said negative database, said one or more transaction databases and said commodity database and operative to compute a first score as a function of said past fraudulent history and said propensity to incite fraudulent activity of said commodity, a second score as a function of the authenticity of said plurality of transaction parameters and a fraud score as a function of said first and second scores, said fraud logic being further operative to cause said result logic to indicate that said transaction is fraudulent if said fraud score exceeds a second pre-determined threshold. - View Dependent Claims (51, 52, 53, 54, 55)
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Specification