IDENTIFICATION AND MANAGEMENT OF FRAUDULENT CREDIT/DEBIT CARD PURCHASES AT MERCHANT ECOMMERCE SITES
First Claim
Patent Images
1. A computer implemented method for processing an online transaction, the method comprising the steps of:
- generating from an online transaction of a purchaser, a plurality of keys from key fields of the transaction that individually do not reliably identify the purchaser;
for each key, retrieving a profile of historical transactions associated with the key;
weighting each profile with a weight indicating a degree to which the profile is associated with current purchaser; and
generating a fraud score indicative of the likelihood of fraud in the online transaction as a function of the weighted profiles and the current transaction.
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Abstract
Transaction processing of online transactions at merchant sites determines the likelihood that such transactions are fraudulent, accounting for unreliable fields of a transaction order, which fields do not reliably identify a purchaser. A scoring server using statistical model uses multiple profiles associated with key fields, along with weights to indicate the degree to which the profiles identify the purchaser of the transaction.
198 Citations
30 Claims
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1. A computer implemented method for processing an online transaction, the method comprising the steps of:
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generating from an online transaction of a purchaser, a plurality of keys from key fields of the transaction that individually do not reliably identify the purchaser;
for each key, retrieving a profile of historical transactions associated with the key;
weighting each profile with a weight indicating a degree to which the profile is associated with current purchaser; and
generating a fraud score indicative of the likelihood of fraud in the online transaction as a function of the weighted profiles and the current transaction. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13)
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14. A method for developing a statistical model of online transactions, the method comprising the steps of:
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storing from a plurality of different online merchants, transactions for a plurality of different purchasers, each transaction indicated as being fraudulent or non-fraudulent;
for each of a plurality of key fields of the transaction, including at least one key field for which all of the possible keys of the key field do not reliably identify a purchaser of the transaction, generating for each key of the key field, a profile for all of the transactions having a matching key for the key field, such that at least one profile summarizes the transactions of a plurality of different individuals; and
training a statistical model to generate a score for a transaction, the score indicative of a likelihood that the transaction is fraudulent, by using as training inputs to the statistical model selected transactions, the profiles associated with the keys of the key fields of each selected transaction, and the contrast measures associated with the profiles. - View Dependent Claims (15, 16)
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17. A computer implemented method for processing an online transaction, comprising the steps of:
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generating from the online transaction of a purchaser, a plurality of keys from key fields of the transaction that individually do not reliably identify the purchaser;
for each key, retrieving a profile of historical transactions associated with the key, each profile including at least one summary variable; and
inputting the contrast measures, the online transaction data and the selected set of profiles into a predictive model to generate a fraud score indicative of the likelihood of fraud in the online transaction. - View Dependent Claims (18, 19, 20, 21, 22, 23, 24)
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25. A system for processing online transactions, the system comprising:
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a rule engine that receives from a scoring system a fraud score associated with a transaction, the fraud score indicating the likelihood of fraud in the transaction, which applies a plurality of stored rules to the fraud score, each rule providing a condition and an action to perform in response to the transaction or the fraud score, to determine according to the rules whether to approve or decline the transaction, request more information from the purchaser, or hold the transaction for review by a human analyst;
an outsort management workstation that receives from the rule engine transactions to be held for review, stores the transactions in queues, and provides access to the queues to a human analyst in order to review transactions in the queues, the outsort management workstation further adapted to define for each queue at least one criteria for associating a transaction with the queue; and
a policy management workstation adapted to access the stored rules, and define rules for the rule engine to apply.
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26. A method for establishing a cutoff score for a transaction processing system that processes transactions of a merchant, comprising the steps of:
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providing a statistical model that generates a score categorizing a transaction, the score used by the merchant to accept or reject the transaction;
determining for each of a plurality of scores generated by the statistical model an actual transaction false positive rate;
determining a desired transaction false positive rate as a function of the merchant'"'"'s net margin; and
setting the cutoff score for rejecting transactions as a score having an actual transaction false positive rate approximating or equal to the desired transaction false positive rate. - View Dependent Claims (27)
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28. A system for developing a statistical model of online transactions, comprising:
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a database for storing transactions from a plurality of different online merchants, the transactions for a plurality of different purchasers, each transaction indicated as being fraudulent or non-fraudulent;
means for generating for each of a plurality of key fields of the transaction—
including at least one key field for which all of the possible keys of the key field do not reliably uniquely identify a purchaser of the transaction—
a profile for all of the transactions having a matching key for the key field, such that at least one profile summarizes the transactions of a plurality of different individuals; and
means for training a statistical model to generate a score for a transaction, the score indicative of a likelihood that the transaction is fraudulent, by using as training inputs to the statistical model selected transactions, the profiles associated with the keys of the key fields of each selected transaction.
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29. A system for processing online transactions, the system comprising:
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a rule engine having a function of determining whether to approve a transaction, decline the transaction, request more information from the purchaser of the transaction, or hold the transaction for review by a human analyst by way of receiving a fraud score for the transaction from a scoring system and applying rules to the fraud score, wherein each rule defines a condition and an action to perform in response to the fraud score, to produce a determination for handling the transaction;
an outsort management workstation having a function of queuing transactions to be held for review and providing access to the queues to a human analyst in order to review transactions in the queues by way of receiving from the rule engine transactions to be held for review and storing the transactions in queues, each queue having at least one criteria for storing a transaction in the queue, to produce a set of queues, each queue storing one or more transactions; and
a policy management workstation having a function of defining rules for the rule engine to apply, by way of providing access to the stored rules. - View Dependent Claims (30)
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Specification