Method and system for detecting possible frauds in payment transactions

• US 20050278192A1
• Filed: 08/22/2005
• Published: 12/15/2005
• Est. Priority Date: 02/21/2003
• Status: Active Grant

• Current Assignee: InterDigital Patent Holdings, Inc. (InterDigital, Inc.)
• Original Assignee: Swisscom Mobile AG (Government of Switzerland)
• Inventors: Cantini, Renato, Lauper, Karin Busch
• Granted Patent: US 7,610,040 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3223 Realising banking transactions through M-devices
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/346 Cards serving only as information carrier of service
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G06Q 20/389 Keeping log of transactions for guaranteeing non-repudiation of a transaction
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

Method for detecting possible frauds in payment transactions between at least two partners (1, 2), the payment transaction data and/or payment authorization data being transmitted over at least one mobile radio network, at least one multivalued parameter used for detecting a possible fraud attempt being determined in said mobile radio network,

• • said payment transactions being performed over at least one payment service provider (4),
  • at least a second multivalued parameter used for detecting a possible fraud attempt being determined by said payment service provider (4), and certain combinations of said first and second parameters are sought in said fraud detection module in order to detect fraud attempts.

Claims

1. Method for detecting possible frauds in payment transactions between at least two partners,

transmitting the payment transaction data and/or payment authorization data over at least one mobile radio network,

using at least one multivalued parameter for detecting a possible fraud attempt being determined in said mobile radio network,

performing said payment transactions over at least one payment service provider,

using at least a second multivalued parameter for detecting a possible fraud attempt being determined by said payment service provider, and

searching certain combinations of said first and second parameters in order to detect fraud attempts.

2. The method of claim 1, wherein said partners are bound to several money accounts of several payment service providers and wherein parameters from several payment service providers are used to detect possible frauds.

3. The method of claim 2, wherein all payment services to which a partner is bound are blocked as soon as a fraud or fraud attempt of the partner has been detected.

4. The method of claim 2, wherein both partners are each bound to several money accounts and comprising the steps of determining the pair of money accounts that is used for a particular payment transaction automatically by said payment platform.

5. The method of claim 1, comprising the steps of performing tests for detecting possible frauds before each payment transaction.

6. The method of claim 5, comprising the steps of performing said tests at least partially in the infrastructure of said mobile radio network.

7. The method of claim 1, wherein said parameters of the mobile radio network operator include at least one of the following parameters:

location of the first partner,

identity of the mobile radio network,

location of the second partner,

trajectory of the first partner,

trajectory of the second partner,

used combination of mobile device and identification module,

transmission channel that is used for the payment transaction,

mobile device use profile of the first partner,

mobile device use profile of the second partner,

manual and/or unusual choice of the used payment service,

time and/or

date, and/or

day of the week.

8. The method of claim 1, wherein said parameters of the payment service provider include at least one of the following parameters:

used payment service,

used money account,

balance on the used money account,

payment service use profile,

payment amount,

payment transaction frequency,

providing partners,

several failed attempts at authentication,

time, and/or

date, and/or

day of the week, and/or

log file of earlier transactions,

black list of partners that are blocked for transaction with a certain money account,

white list of partners that are authorized for a transaction with a certain money account,

grey list of suspect partners

number of transactions with each money account during a predetermined period,

profile of the partner.

9. The method of claim 1, wherein said parameters include the method used for loading money accounts.

10. Fraud detection system to detect possible frauds in payment transactions between two partners, payment data for the payment transaction being transmitted over a mobile radio network, the payment transaction occurring over a payment service provider external to the mobile radio network,

comprising the step of combining mobile radio network internal multivalued parameters with multivalued parameters of the payment service provider to detect possible frauds.

11. Fraud detection system according to claim 10, with a payment platform in the infrastructure of the mobile radio network, with which payment transactions can be performed.

12. Fraud detection system according to claim 10, wherein both transaction partners are each bound to several money accounts and wherein the pair of money accounts that is used for a certain payment transaction is determined automatically by said payment platform.

13. Fraud detection system according to claim 10, wherein said parameters internal to the mobile radio network include at least one of the following parameters:

location of the first partner,

identity of the mobile radio network,

location of the second partner,

trajectory of the first partner,

trajectory of the second partner,

used combination of mobile device and identification module,

transmission channel that is used for the payment transaction,

mobile device use profile of the first partner,

mobile device use profile of the second partner,

manual and/or unusual choice of the used payment service,

time and/or

date, and/or

day of the week.

14. Fraud detection system according to claim 10, wherein said parameters of the payment service provider include at least one of the following parameters:

used payment service,

used money account,

balance on the used money account,

payment service use profile,

payment amount,

payment transaction frequency,

providing partners,

several failed attempts at authentication,

time, and/or

date, and/or

day of the week, and/or

log file of earlier transactions,

black list of partners that are blocked for transaction with a certain money account,

white list of partners that are authorized for a transaction with a certain money account,

grey list of suspect partners

number of transactions with each money account during a predetermined period,

profile of the partner.

15. Fraud detection system according to claim 10, wherein said parameters include the method used for loading money accounts.

16. Fraud detection system according to claim 10, that is designed in such a fashion that it also takes into account parameters from third parties connected over the Internet.

17. Fraud detection system according to claim 10, comprising the step of using data mining methods to detect unusual behaviors of mobile users.

18. Fraud detection system according to claim 14 that is in a mobile device of one of said partners.

19. Fraud detection system according to claim 14, that is in the terminal of the providing partner.

20. Method for detecting possible frauds in payment transactions between at least two partners,

transmitting the payment transaction data and/or payment authorization data over at least one mobile radio network,

using at least one multi glued parameter for detecting a possible fraud attempt being determined in said mobile radio network,

performing said payment transactions over at least one payment service provider,

using at least a second multivalued parameter for detecting a possible fraud attempt being determined by said payment service provider, and

searching certain combinations of said first and second parameters in order to detect fraud attempts,

wherein said parameters internal to the mobile radio network include at least two of the following parameters:

location of the first partner,

identity of the mobile radio network,

location of the second partner,

trajectory of the first partner,

trajectory of the second partner,

used combination of mobile device and identification module,

transmission channel that is used for the payment transaction,

mobile device use profile of the first partner,

mobile device use profile of the second partner,

manual and/or unusual choice of the used payment service,

time, and/or

date, and/or

day of the week and

wherein said parameters of the payment service provider include at least one of the following parameters;

used payment service,

used money account,

balance on the used money account,

payment service use profile,

payment amount,

payment transaction frequency,

providing partners,

several failed attempts at authentication,

time, and/or

date, and/or

day of the week, and/or

log file of earlier transactions,

black list of partners that are blocked for transaction with a certain money account,

white list of partners that are authorized for a transaction with a certain money account,

gray list of suspect partners,

number of transactions with each money account during a predetermined period,

profile of the partner.

21. Method for detecting possible frauds in payment transactions between at least two partners,

transmitting the payment transaction data and/or payment authorization data over at least one mobile radio network,

using at least one multivalued parameter for detecting a possible fraud attempt being determined in said mobile radio network,

performing said payment transactions over at least one payment service provider,

using at least a second multivalued parameter for detecting a possible fraud attempt being determined by said payment service provider and

searching certain combinations of said first and second parameters in order to detect fraud attempts,

wherein said partners are bound to several money accounts of several payment service providers and wherein parameters from several payment service providers are used to detect possible frauds.

22. The method of claim 21, wherein all payment services to which a partner is bound are blocked as soon as a fraud or fraud attempt of the partner has been detected.

23. The method of claim 21, wherein both partners are each bound to several money accounts and wherein the pair of money accounts that is used for a particular payment transaction is automatically determined by said payment platform.

24. Fraud detection system to detect possible frauds in payment transactions between two partners, payment data for the payment transaction being transmitted over a mobile radio network, the payment transaction occurring over a payment service provider external to the mobile radio network,

comprising the step of combined mobile radio network internal multivalued parameters with multivalued parameters of the payment service provider to detect possible frauds,

wherein said parameters internal to the mobile radio network include at least one of the following parameters:

location of the first partner,

identity of the mobile radio network,

location of the second partner,

trajectory of the first partner,

trajectory of the second partner,

used combination of mobile device and identification module,

transmission channel that is used for the payment transaction,

mobile device use profile of the first partner,

mobile device use profile of the second partner,

manual and/or unusual choice of the used payment service,

time, and/or

date, and/or

day of the week

wherein said parameters of the payment service provider include at least one of the following parameters;

used payment service,

used money account,

balance on the used money account,

payment service use profile,

payment amount,

payment transaction frequency,

providing partners,

several failed attempts at authentication,

time, and/or

date, and/or

day of the week, and/or

log file of earlier transactions,

black list of partners that are blocked for transaction with a certain money account,

white list of partners that are authorized for a transaction with a certain money account,

grey list of suspect partners,

number of transactions with each money account during a predetermined period,

profile of the partner.

25. Fraud detection system to detect possible frauds in payment transactions between two partners, payment data for the payment transaction being transmitted over a mobile radio network, the payment transaction occurring over a payment service provider external to the mobile radio network,

comprising the step of combining mobile radio network internal multivalued parameters with multivalued parameters of the payment service provider to detect possible frauds,

wherein a payment platform in the infrastructure of the mobile radio network, with which payment transactions can be performed.

26. Fraud detection system to detect possible frauds in payment transactions between two partners, payment data for the payment transaction being transmitted over a mobile radio network, the payment transaction occurring over a payment service provider external to the mobile ratio network,

comprising the step of combining mobile radio network internal multivalued parameters with multivalued parameters of the payment service provider to detect possible frauds,

wherein both transaction partners are each bound to several money accounts and wherein the pair of money accounts that is used for a certain payment transaction is determined automatically by said payment platform.