Systems and methods for using phone number validation in a risk assessment

• US 20030216988A1
• Filed: 05/09/2003
• Published: 11/20/2003
• Est. Priority Date: 05/17/2002
• Status: Abandoned Application

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Mollett, Cassandra, Geiler, Steven
• Application Number:
  US10/435,627
• Publication Number:
  US 20030216988A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/40145 Biometric identity checks
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

Systems and methods are described for using information indicative of whether a phone number received from a customer in conjunction with a proposed financial transaction is valid or non-valid to help assess risk associated with the transaction. In one embodiment, information about the validity or non-validity of a telephone number is used to determine whether or not to accept the proposed financial transaction. In one embodiment, information about the validity or non-validity of a telephone number is converted into a variable that used in conjunction with other risk indicators to produce a risk score for evaluating the risk of a proposed transaction.

Claims

1. A method for using phone validation information in risk scoring for a financial transaction, the method comprising:

receiving input indicative of a telephone number for an entity participating in a proposed financial transaction;

determining whether the telephone number is a valid number or a non-valid number;

making the results of the determination available to a risk scoring process associated with the financial transaction.

2. The method of claim 1, further comprising:

assigning a numeric value to the determination; and

using the numeric value to calculate a risk score for the financial transaction.

3. The method of claim 2, further comprising communicating the score to a clerk associated with the financial transaction.

4. The method of claim 2, wherein assigning a numeric value to the determination comprises assigning a value indicative of greater risk if the telephone number is determined to be non-valid and assigning a value indicative of lesser risk if the telephone number is determined to be valid.

5. The method of claim 2, further comprising:

recommending to accept the proposed financial transaction if the risk score indicates that the risk associated with the transaction is acceptable;

recommending to decline the proposed financial transaction if the risk score indicates that the risk associated with the transaction is unacceptable; and

communicating the recommendation to a clerk associated with the financial transaction.

6. The method of claim 5, wherein the risk score indicates that the risk associated with the transaction is acceptable when the risk score is below a threshold value, and the risk score indicates that the risk associated with the transaction is unacceptable when the risk score is above a threshold value.

7. The method of claim 5, wherein the risk score indicates that the risk associated with the transaction is acceptable when the risk score is above a threshold value, and the risk score indicates that the risk associated with the transaction is unacceptable when the risk score is below a threshold value.

8. The method of claim 5, wherein the risk associated with the transaction may be acceptable if the telephone number is non-valid and other factors used to calculate the risk score cause the score to be acceptable.

9. The method of claim 5, wherein the risk associated with the transaction may be unacceptable if the telephone number is valid and other factors used to calculate the risk score cause the score to be unacceptable.

10. The method of claim 1, wherein determining whether the telephone number is a valid or a non-valid number comprises:

dialing the telephone number;

perceiving a tone emitted when the number is dialed; and

interpreting the tone to indicate whether the number is valid or non-valid.

11. The method of claim 1, wherein determining whether the telephone number is a valid or a non-valid number comprises accessing stored information associated with the telephone number that is indicative of whether the telephone number is valid or non-valid.

12. The method of claim 1, wherein determining whether the telephone number is a valid or a non-valid number comprises:

communicating a request to determine the validity or non-validity of a telephone number to a third party phone number validation service; and

receiving a determination from the third party phone number validation service.

13. A process to assess the risk of a proposed financial transaction, the process comprising:

receiving a telephone number associated with the financial transaction;

determining whether the received telephone number is valid or non-valid;

associating an assessment of higher risk with transactions for which the telephone number is determined to be non-valid;

associating an assessment of lower risk with transactions for which the telephone number is determined to be valid; and

generating a risk score for the transaction, based at least in part on the assessment of risk associated with the validity or non-validity of the telephone number.

14. The process of claim 13, wherein determining whether the received telephone number is valid or non-valid comprises:

dialing the telephone number;

perceiving a tone emitted when the telephone number is dialed;

determining that the telephone number is valid if the perceived tone is equivalent to a known tone indicative of valid telephone numbers; and

determining that the telephone number is non-valid if the perceived tone is equivalent to a known tone indicative of non-valid telephone numbers.

15. The process of claim 13, wherein determining whether the received telephone number is valid or non-valid comprises searching one or more telephone number validity databases for information indicative of a previous determination of the validity or non-validity of the telephone number.

16. The process of claim 15, further comprising determining that the telephone number is valid if information exists in the one or more telephone number validity databases indicative of a previous determination of validity for the telephone number.

17. The process of claim 15, further comprising determining that the telephone number is non-valid if information exists in the one or more telephone number validity databases indicative of a previous determination of non-validity for the telephone number.

18. The process of claim 13, wherein determining whether the received telephone number is valid or non-valid comprises:

transmitting the telephone number to a third party telephone number validation service along with a request that the telephone number be evaluated; and

receiving a response from the third party telephone number validation service indicative of the validity or non-validity of the telephone number.

19. The process of claim 13, wherein the financial transaction is a point-of-sale transaction in which a promissory payment is offered by a customer.

20. The process of claim 19, wherein the process takes place while the entity is waiting at the point of sale.

21. The process of claim 13, further comprising using the assessment as a factor in calculating a risk scoring for the transaction.

22. An apparatus for using information about a telephone number associated with a financial transaction in a risk assessment of the financial transaction, the apparatus comprising:

a computer processor configured to determine a risk score for a financial transaction based at least in part on information about the validity of a phone number associated with the financial transaction.

23. A system for evaluating risk associated with a financial transaction, based at least in part on a determination of whether a telephone number provided in association with the financial transaction is a valid number or is a non-valid number, the system comprising:

means for receiving input indicative of a telephone number from an entity participating in a financial transaction;

means for accessing stored information indicative of the validity of the telephone number; and

means for determining a risk score associated with the financial transaction, based at least in part on the validity of the telephone number.