Method and system of transaction card fraud mitigation utilizing location based services

• US 20030182194A1
• Filed: 01/31/2003
• Published: 09/25/2003
• Est. Priority Date: 02/06/2002
• Status: Abandoned Application

• Current Assignee: Citibank NA (Citigroup Incorporated)
• Original Assignee: Citibank NA (Citigroup Incorporated)
• Inventors: Schreiber, David, Choey, Mark, Schutzer, Daniel
• Application Number:
  US10/355,413
• Publication Number:
  US 20030182194A1
• Time in Patent Office: Days
• US Class Current: 705/16
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/3224 Transactions dependent on location of M-devices
• CPC Class Codes: G06Q 20/326 Payment applications installed on the mobile devices
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: H04L 63/0853 using an additional device, e.g. smartcard, SIM or a different communication terminal cryptographic mechanisms or cryptographic arrangements for entity authentication involving additional secure or trusted devices H04L9/3234
• CPC Class Codes: H04W 12/126 Anti-theft arrangements, e.g. protection against subscriber identity module [SIM] cloning
• CPC Class Codes: H04W 12/63 Location-dependent; Proximity-dependent
• CPC Class Codes: H04W 4/02 Services making use of location information
• CPC Class Codes: H04W 4/029 Location-based management or tracking services

Abstract

A method and system of transaction card fraud mitigation utilizes location based services provided by a card holder'"'"'s wireless carrier for verification of whether or not a transaction with the card holder'"'"'s transaction card is fraudulent. For example, when factors indicative of a likelihood of a fraudulent transaction with the card holder'"'"'s transaction card are present, the card processing system requests the card holder'"'"'s wireless carrier to return the location information of the card holder'"'"'s mobile phone, which is typically on the person of the subscriber. When the location of the subscriber'"'"'s mobile phone is returned and determined to be at or near the location from which the transaction is being attempted with the transaction card, the card processing system has a reasonable degree of confidence that the particular transaction is or is not fraudulent and allows the transaction to proceed. Otherwise, the transaction is denied.

Claims

1. A method of mitigating transaction card fraud, comprising:

receiving transaction card information for a user in connection with a transaction attempted by the user at a user location;

sending a request to a wireless carrier of a mobile phone of a holder of the transaction card to return location information of the mobile phone of the card holder utilizing location based services provided by the card holder'"'"'s wireless carrier;

receiving the location information for the card holder'"'"'s mobile phone from the card holder'"'"'s wireless carrier;

allowing the transaction to proceed if the location of the card holder'"'"'s mobile phone is determined to be proximate the user location; and

denying the transaction if the location of the card holder'"'"'s mobile phone is determined to be at a location other than the user location.

2. The method of claim 1, wherein receiving the transaction card information further comprises receiving the information by a transaction card processing system via a merchant'"'"'s point-of-sale terminal disposed at the user location.

3. The method of claim 2, wherein receiving the transaction card information via the merchant'"'"'s point-of-sale terminal further comprises receiving the information via the merchant'"'"'s point-of-sale terminal through swiping the card through a card reader of the terminal.

4. The method of claim 2, wherein receiving the transaction card information via the merchant'"'"'s point-of-sale terminal further comprises receiving the information via the terminal by manual input.

5. The method of claim 2, wherein receiving the transaction card information via the merchant'"'"'s point-of-sale terminal further comprises receiving the information by the transaction card processing system via a phone call by the merchant'"'"'s point-of-sale terminal to the transaction card processing system.

6. The method of claim 2, wherein receiving the transaction card information via the merchant'"'"'s point-of-sale terminal further comprises receiving the information by the transaction card processing system via a direct connection between the merchant'"'"'s point-of-sale terminal and the transaction card processing system.

7. The method of claim 1, wherein receiving the transaction card information further comprises receiving ATM card information by an ATM card processing system via an ATM machine disposed at the user location.

8. The method of claim 1, wherein receiving the transaction card information further comprises receiving ATM card information by an ATM card processing system via a merchant point-of-sale terminal disposed at the user location.

9. The method of claim 1, wherein receiving the transaction card information further comprises receiving the transaction card information by a transaction card processing system via a network connected computing device disposed at the user location.

10. The method of claim 9, wherein receiving the transaction card information via the network connected computing device further comprises approximating the user location by the transaction card processing system via a trace of the network connected computing device.

11. The method of claim 1, wherein receiving the transaction card information further comprises receiving the transaction card information by a transaction card processing system via a land line connected telephonic device disposed at the user location.

12. The method of claim 11, wherein receiving the transaction card information via the land line connected telephonic device further comprises approximating the user location by the transaction card processing system via a trace of the land line connected telephonic device.

13. The method of claim 1, wherein receiving the transaction card information further comprises receiving access control card information by an access control card system via an access control terminal disposed at the user location.

14. The method of claim 13, wherein receiving the access control card information via the access control terminal further comprises receiving the access control card information via the access control terminal through swiping the card through a card reader of the terminal.

15. The method of claim 1, wherein sending the request to the card holder'"'"'s wireless carrier further comprises sending the request to the wireless carrier by a transaction card processing system if the transaction is flagged by a fraud detection system of the transaction card processing system as likely to be fraudulent.

16. The method of claim 15, wherein sending the request to the card holder'"'"'s wireless carrier further comprises flagging the transaction by the fraud detection system as likely to be fraudulent if factors indicative of the likelihood of a fraudulent transaction are identified by the fraud detection system.

17. The method of claim 16, wherein sending the request to the card holder'"'"'s wireless carrier further comprises evaluating the transaction card information by the fraud detection system according to pre-defined parameters for detecting factors indicative of the likelihood of a fraudulent transaction.

18. The method of claim 1, wherein sending the request to the card holder'"'"'s wireless carrier further comprises sending the request to the wireless carrier by a transaction card processing system if the transaction is flagged by the transaction card processing system as a transaction with a compromised transaction card.

19. The method of claim 18, wherein sending the request to the card holder'"'"'s wireless carrier further comprises flagging all transactions with the transaction card by the transaction card processing system if information is received by the transaction card processing system that the card holder'"'"'s transaction card has been compromised.

20. The method of claim 1, wherein sending the request to the card holder'"'"'s wireless carrier further comprises sending the request to the wireless carrier by an ATM card processing system if factors indicative of a likelihood of a fraudulent transaction are identified by the ATM card processing system.

21. The method of claim 20, wherein sending the request to the card holder'"'"'s wireless carrier if factors indicative of a likelihood of a fraudulent transaction are identified further comprises sending the request to the wireless carrier by the ATM card processing system if a predetermined number of incorrect card holder identification information entry attempts by the card user are received by the ATM card processing system.

22. The method of claim 1, wherein sending the request to the card holder'"'"'s wireless carrier further comprises sending the request to the wireless carrier by a transaction card processing system if the transaction is flagged by the transaction card processing system as likely to be a fraudulent transaction.

23. The method of claim 22, wherein sending the request to the card holder'"'"'s wireless carrier further comprises flagging the transaction by the transaction card processing system as likely to be fraudulent if an approximation of the user location by the transaction card processing system via a trace of a network connected computing device disposed at the user location determines the user location to be outside a pre-defined home geographic area of the card holder.

24. The method of claim 22, wherein sending the request to the card holder'"'"'s wireless carrier further comprises flagging the transaction by the transaction card processing system as likely to be fraudulent if an approximation of the user location by the transaction card processing system via a trace of a land line connected telephonic device disposed at the user location determines the user location to be outside a pre-defined home geographic area of the card holder.

25. The method of claim 1, wherein sending the request to the card holder'"'"'s wireless carrier further comprises sending the request to the wireless carrier by an access control card processing system.

26. The method of claim 1, wherein receiving the location information for the card holder'"'"'s mobile phone further comprises receiving the location information from the card holder'"'"'s wireless carrier by a transaction card processing system.

27. The method of claim 1, wherein receiving the location information for the card holder'"'"'s mobile phone further comprises receiving the location information from the card holder'"'"'s wireless carrier by an ATM card processing system.

28. The method of claim 1, wherein receiving the location information for the transaction card holder'"'"'s mobile phone further comprises receiving the location information from the card holder'"'"'s wireless carrier by an access control card processing system.

29. The method of claim 1, wherein allowing the transaction to proceed further comprises allowing the transaction to proceed by a transaction card processing system if the location of the card holder'"'"'s mobile phone is determined to be proximate a merchant'"'"'s point-of-sale terminal disposed at the user location.

30. The method of claim 1, wherein allowing the transaction to proceed further comprises allowing the transaction to proceed by an ATM card processing system if the location of the card holder'"'"'s mobile phone is determined to be proximate an ATM machine disposed at the user location.

31. The method of claim 1, wherein allowing the transaction to proceed further comprises allowing the transaction to proceed by a transaction card processing system if the location of the card holder'"'"'s mobile phone is determined to be proximate a network connected computing device disposed at the user location.

32. The method of claim 1, wherein allowing the transaction to proceed further comprises allowing the transaction to proceed by a transaction card processing system if the location of the card holder'"'"'s mobile phone is determined to be proximate a land line connected telephonic device disposed at the user location.

33. The method of claim 1, wherein allowing the transaction to proceed further comprises allowing the transaction to proceed by an access control card processing system if the location of the card holder'"'"'s mobile phone is determined to be proximate an access control terminal disposed at the user location.

34. The method of claim 1, wherein denying the transaction further comprises denying the transaction by a transaction card processing system if the location of the card holder'"'"'s mobile phone is determined to be at a location other than proximate a merchant'"'"'s point-of-sale terminal disposed at the user location.

35. The method of claim 1, wherein denying the transaction further comprises denying the transaction by an ATM card processing system if the location of the card holder'"'"'s mobile phone is determined to be at a location other than proximate an ATM machine disposed at the user location.

36. The method of claim 1, wherein denying the transaction further comprises denying the transaction by a transaction card processing system if the location of the card holder'"'"'s mobile phone is determined to be at a location other than proximate a network connected computing device disposed at the user location.

37. The method of claim 1, wherein denying the transaction further comprises denying the transaction by a transaction card processing system if the location of the card holder'"'"'s mobile phone is determined to be at a location other than proximate a land line connected telephonic device disposed at the user location.

38. The method of claim 1, wherein denying the transaction further comprises denying the transaction by an access control card processing system if the location of the card holder'"'"'s mobile phone is determined to be at a location other than proximate an access control terminal disposed at the user location.

39. A system for mitigating transaction card fraud, comprising:

a transaction card processing system adapted for receiving transaction card information for a user in connection with a transaction attempted by the user at a user location;

the transaction card processing system having means for sending a request to a wireless carrier of a mobile phone of a holder of the transaction card to return location information of the mobile phone of the card holder utilizing location based services provided by the card holder'"'"'s wireless carrier and means for receiving the location information for the card holder'"'"'s mobile phone from the card holder'"'"'s wireless carrier; and

the transaction card processing system being further adapted for allowing the transaction to proceed if the location of the card holder'"'"'s mobile phone is determined to be proximate the user location and for denying the transaction if the location of the card holder'"'"'s mobile phone is determined to be at a location other than the user location.

40. The system of claim 39, wherein the transaction card processing system is further adapted for receiving the transaction card information via a merchant'"'"'s point-of-sale terminal disposed at the user location.

41. The system of claim 40, wherein the transaction card processing system is further adapted for receiving the transaction card information via the merchant'"'"'s point-of-sale terminal through swiping the card through a card reader of the terminal.

42. The system of claim 40, wherein the transaction card processing system is further adapted for receiving the information via the terminal by manual input.

43. The system of claim 40, wherein the transaction card processing system is further adapted for receiving the information via a phone call by the merchant'"'"'s point-of-sale terminal to the transaction card processing system.

44. The system of claim 40, wherein the transaction card processing system is further adapted for receiving the information via a direct connection between the merchant'"'"'s point-of-sale terminal and the transaction card processing system.

45. The system of claim 39, wherein the transaction card processing system further comprises an ATM card processing system adapted for receiving ATM card information via an ATM machine disposed at the user location.

46. The system of claim 39, wherein the transaction card processing system further comprises an ATM card processing system adapted for receiving ATM card information via a merchant point-of-sale terminal disposed at the user location.

47. The system of claim 39, wherein the transaction card processing system is further adapted for receiving the transaction card information via a network connected computing device disposed at the user location.

48. The system of claim 47, wherein the transaction card processing system is further adapted for approximating the user location via a trace of the network connected computing device.

49. The system of claim 39, wherein the transaction card processing system is further adapted for receiving the transaction card information via a land line connected telephonic device disposed at the user location.

50. The system of claim 49, wherein the transaction card processing system is further adapted for approximating the user location via a trace of the land line connected telephonic device.

51. The system of claim 39, wherein the transaction card processing system further comprises an access control card system adapted for receiving access control card information via an access control terminal disposed at the user location.

52. The system of claim 51, wherein the access control card system is further adapted for receiving the access control card information via the access control terminal through swiping the card through a card reader of the terminal.

53. The system of claim 39, wherein the transaction card processing system is further adapted for sending the request to the wireless carrier system if the transaction is flagged by a fraud detection system of the transaction card processing system as likely to be fraudulent.

54. The system of claim 53, wherein the fraud detection system of the transaction card processing system is adapted for flagging the transaction as likely to be fraudulent if factors indicative of the likelihood of a fraudulent transaction are identified by the fraud detection system.

55. The system of claim 54, wherein the fraud detection system of the transaction card processing system is further adapted for evaluating the transaction card information according to pre-defined parameters for detecting factors indicative of the likelihood of a fraudulent transaction.

56. The system of claim 39, wherein the transaction card processing system is further adapted for sending the request to the wireless carrier if the transaction is flagged by the transaction card processing system as a transaction with a compromised transaction card.

57. The system of claim 56, wherein the transaction card processing system is further adapted for flagging all transactions with the transaction card if information is received by the transaction card processing system that the card holder'"'"'s transaction card has been compromised.

58. The system of claim 39, wherein the transaction card processing system further comprises an ATM card processing system adapted for sending the request to the wireless carrier if factors indicative of a likelihood of a fraudulent transaction are identified by the ATM card processing system.

59. The system of claim 58, wherein the ATM card processing system is further adapted for sending the request to the wireless carrier if a predetermined number of incorrect card holder identification information entry attempts by the card user are received by the ATM card processing system.

60. The system of claim 39, wherein the transaction card processing system is further adapted for sending the request to the wireless if the transaction is flagged by the transaction card processing system as likely to be a fraudulent transaction.

61. The system of claim 60, wherein the transaction card processing system is further adapted for flagging the transaction as likely to be fraudulent if an approximation of the user location by the transaction card processing system via a trace of a network connected computing device disposed at the user location determines the user location to be outside a pre-defined home geographic area of the card holder.

62. The system of claim 60, wherein the transaction card processing system is further adapted for flagging the transaction as likely to be fraudulent if an approximation of the user location by the transaction card processing system via a trace of a land line connected telephonic device disposed at the user location determines the user location to be outside a pre-defined home geographic area of the card holder.

63. The system of claim 39, wherein the transaction card processing system further comprises by an access control card processing system adapted for sending the request to the wireless carrier.

64. The system of claim 39, wherein the transaction card processing system is further adapted for receiving the location information from the card holder'"'"'s wireless carrier.

65. The system of claim 39, wherein the transaction card processing system further comprises an ATM card processing system adapted for receiving the location information from the card holder'"'"'s wireless carrier.

66. The system of claim 39, wherein the transaction card processing system further comprises an access control card processing system adapted for receiving the location information from the card holder'"'"'s wireless carrier.

67. The system of claim 39, wherein the transaction card processing system is further adapted for allowing the transaction to proceed if the location of the card holder'"'"'s mobile phone is determined to be proximate a merchant'"'"'s point-of-sale terminal disposed at the user location.

68. The system of claim 39, wherein the transaction card processing system further comprises an ATM card processing system adapted for allowing the transaction to proceed if the location of the card holder'"'"'s mobile phone is determined to be proximate an ATM machine disposed at the user location.

69. The system of claim 39, wherein the transaction card processing system is further adapted for allowing the transaction to proceed if the location of the card holder'"'"'s mobile phone is determined to be proximate a network connected computing device disposed at the user location.

70. The system of claim 39, wherein the transaction card processing system is further adapted for allowing the transaction to proceed if the location of the card holder'"'"'s mobile phone is determined to be proximate a land line connected telephonic device disposed at the user location.

71. The system of claim 39, wherein the transaction card processing system further comprises an access control card processing system adapted for allowing the transaction to proceed if the location of the card holder'"'"'s mobile phone is determined to be proximate an access control terminal disposed at the user location.

72. The system of claim 39, wherein the transaction card processing system is further adapted for denying the transaction if the location of the card holder'"'"'s mobile phone is determined to be at a location other than proximate a merchant'"'"'s point-of-sale terminal disposed at the user location.

73. The system of claim 39, wherein the transaction card processing system further comprises an ATM card processing system adapted for denying the transaction if the location of the card holder'"'"'s mobile phone is determined to be at a location other than proximate an ATM machine disposed at the user location.

74. The system of claim 39, wherein the transaction card processing system is further adapted for denying the transaction if the location of the card holder'"'"'s mobile phone is determined to be at a location other than proximate a network connected computing device disposed at the user location.

75. The system of claim 39, wherein the transaction card processing system is further adapted for denying the transaction if the location of the card holder'"'"'s mobile phone is determined to be at a location other than proximate a land line connected telephonic device disposed at the user location.

76. The system of claim 39, wherein the transaction card processing system further comprises an access control card processing system adapted for denying the transaction if the location of the card holder'"'"'s mobile phone is determined to be at a location other than proximate an access control terminal disposed at the user location.