INTERNET ANTI-FRAUD CARDHOLDER VERIFICATION SYSTEM

• US 20070094095A1
• Filed: 10/25/2006
• Published: 04/26/2007
• Est. Priority Date: 10/26/2005
• Status: Abandoned Application

• Current Assignee: Brian Kilby
• Original Assignee: Brian Kilby
• Inventors: KILBY, Brian
• Application Number:
  US11/552,820
• Publication Number:
  US 20070094095A1
• Time in Patent Office: Days
• US Class Current: 705/26.35
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification

Abstract

A method for detecting on-line fraudulent transactions is presented. In at least one embodiment, the method comprises the steps of registering a potential customer, receiving customer data comprising at least a customer telephone number having a customer area code and customer exchange and a customer address having a customer ZIP code, and calculating a distance between said customer ZIP code and at least one of said customer area code and customer exchange. In some embodiments of the method, customer registration will be rejected if the distance between at said customer ZIP code and at least one of said customer area code and customer exchange is too large. In additional embodiments, if a customer is registered, additional security measures are employed increase the likelihood of preventing fraud by attempting to verify the identity of the customer.

Claims

1. A method for verifying the identify of online consumers comprising the steps of:

registering a customer, including receiving a customer ZIP code and a customer telephone number having a customer area code and customer exchange; and

verifying customer identity wherein said step of registering a customer involves the steps of receiving a customer ZIP code, receiving a customer telephone number, and calculating the distance between said customer ZIP code and at least one of said customer area code and said customer exchange.

2. The method of claim 1, further comprising the steps of:

setting a distance threshold; and

completing said step of registering a customer if said distance is less than said distance threshold.

3. The method of claim 2 wherein said step of registering a customer further comprises the steps of:

receiving customer address information;

receiving customer payment information;

transmitting said payment information to a verification means wherein said verification means includes a database of known customer information; and

determining if said customer address information agrees with said known customer information.

4. The method of claim 3, wherein said step of determining if said customer address information agrees with said known customer information determines that said customer address information does agree with said known customer information, further comprising the steps of:

allowing said customer to select items for purchase, said items comprising a potential transaction; and

determining if said customer is a validated customer.

5. The method of claim 4, wherein if said step of determining if said customer is a validated customer determines that said customer is not a validated customer, then further comprising the steps of:

analyzing said potential transaction;

comparing said potential transaction to a database of known transactions;

identifying similarities between said potential and said known transactions to determine a fraud risk associated with said potential transaction; and

selecting a validation method based on said fraud risk.

6. The method of claim 5 wherein said validation method comprises the step of:

validating said customer using automated telephonic validation means.

7. The method of claim 6 wherein said automated telephonic validation means comprise the steps of:

requesting that said customer place an inbound telephone call to a predetermined telephone number; and

comparing the caller identification information associated with said inbound telephone call with said customer telephone number.

8. The method of claim 7 further comprising the steps of:

providing said customer with an alphanumeric identification code;

receiving input from said customer during said inbound telephone call; and

comparing said input with said alphanumeric identification code.

9. The method of claim 8, wherein if said step of comparing said input with said alphanumeric identification code determines that said input and said alphanumeric identification code agree, then further comprising the step of finalizing said potential transaction and delivering said items to said customer.

10. The method of claim 8 further comprising the steps of:

placing an outbound telephone call to said customer telephone number; and

verifying that said customer is able to receive said outbound telephone call to said customer telephone number.

11. The method of claim 10, wherein if said step of verifying that said customer is able to receive said outbound telephone call to said customer telephone number determines that said customer is able to receive said outbound telephone call to said customer telephone number, then further comprising the step of finalizing said potential transaction and delivering said items to said customer.

12. The method of claim 5 wherein said validation method comprises the steps of:

presenting at least one query to said customer regarding said customer, wherein said query tests said customer'"'"'s knowledge of data that would be generally known only to said customer.

13. The method of claim 12 further comprising the steps of:

defining a success rate, wherein if said customer is able to correctly answer a number of said at least one query at a rate that is greater than said success rate, then finalizing said potential transaction and delivering said items to said customer.

14. The method of claim 10, wherein if said step of verifying that said customer is able to receive said outbound telephone call to said customer telephone number determines that said customer is not able to receive said outbound telephone call to said customer telephone number, then further comprising the step of manually reviewing at least one of said customer address information, said customer payment information and said potential transaction.

15. The method of claim 1 wherein the step of calculating the distance between said customer ZIP code and at least one of said customer area code and said customer exchange is performed according to the following calculation:

r*acos[sin(lat1)*sin(lat2)+cos(lat1)*cos(lat2)*cos(lon2−

lon1)],

where;

r is the radius of the Earth in miles (3963.0 (statute miles));

lat1 is the latitude of a first location;

lon1 is the longitude of a first location;

lat2 is the latitude of a second location; and

lon2 is the longitude of a second location and wherein said first location is the location of said customer ZIP code and said second location is the location of said customer telephone number.

16. The method of claim 1 further comprising the step of setting a target threshold, wherein if said step of calculating the distance between said customer ZIP code and at least one of said customer area code and said customer exchange returns a distance which is greater than said target threshold, then the additional step of alerting said customer that the customer has not been registered.

17. The method of claim 16 wherein said target threshold is 100 miles.

18. The method of claim 16 wherein said target threshold is 55 miles.