Bank Card Fraud Detection And/Or Prevention Methods

• US 20080172316A1
• Filed: 12/13/2007
• Published: 07/17/2008
• Est. Priority Date: 01/12/2007
• Status: Active Grant

• Current Assignee: Advanced Fraud Solutions, LLC
• Original Assignee: Allegacy Federal Credit Union
• Inventors: Adams, Dean A.
• Granted Patent: US 8,036,967 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

Bank card fraud detection and/or prevention methods can generally involve determining a common point of compromise and/or identifying merchants associated with bank card transaction frequencies which exceed a predetermined threshold value which is indicative of potentially fraudulent bank card activity. These methods can further involve identifying other bank cards used at the common point of compromise.

Claims

1. A bank card fraud detection and/or prevention method comprising:

a. identifying a plurality of bank cards which are suspected or known to be associated with fraudulent charges; and

b. determining a common point of compromise, wherein said common point of compromise is at least one merchant at which at least some of said plurality of bank cards were used.

2. The method of claim 1 further comprising identifying other bank cards which were used at said common point of compromise, wherein said other bank cards are potentially compromised.

3. The method of claim 2 further comprising generating a list of said other potentially compromised bank cards, such that said list can be provided to the appropriate financial institutions and legal and/or regulatory authorities such that appropriate action can be taken to prevent fraudulent use thereof.

4. The method of claim 3 further comprising deactivating the bank cards on said list of potentially compromised bank cards.

5. The method of claim 4 further comprising issuing new bank cards to replace the deactivated ones.

6. The method of claim 1 wherein determining said common point of compromise further comprises searching a bank card database using a plurality of bank card numbers which are suspected or known to be associated with fraudulent charges.

7. The method of claim 6 wherein determining said common point of compromise further comprises specifying a date range within which said potentially compromised bank cards were used at said common point of compromise.

8. The method of claim 1 wherein subsequently identifying said potentially compromised bank cards further comprises searching said bank card database using said common point of compromise to identify said additional bank cards used at said common point of compromise.

9. The method of claim 8 wherein searching for said potentially compromised bank cards further comprises specifying a date range within which bank cards were used at said common point of compromise.

10. The method of claim 1 wherein:

a. said common point of compromise further comprises a plurality of common points of compromise, each of said plurality of common points of compromise corresponding to a merchant at which a plurality of said bank cards were used; and

b. identifying additional bank cards which were used at each of said plurality of common points of compromise.

11. The method of claim 10 further comprising creating a list of said potentially compromised bank cards which can be provided to the appropriate financial institutions and legal and/or regulatory authorities such that further action can be taken to prevent fraudulent use thereof.

12. A computer-readable medium having computer-executable instructions for performing a bank card fraud detection and/or prevention method comprising:

a. searching a bank card database using a query based upon a plurality of bank card numbers which are suspected or known to be associated with fraudulent charges; and

b. determining at least one common point of compromise at which at least some of said plurality of said bank cards where used, wherein said at least one common point of compromise corresponds to a merchant.

13. The computer readable medium of claim 12 further comprising instructions for identifying other bank cards used at said merchant, wherein such other bank cards are potentially compromised.

14. The computer readable medium of claim 13 further comprising instructions for generating a list of said potentially compromised bank cards which can be provided to the appropriate financial institutions and legal and/or regulatory authorities such that appropriate action can be taken to prevent fraudulent use thereof.

15. The computer readable medium of claim 14 further comprising instructions for deactivating the bank cards on said list of potentially compromised bank cards, or noting that such cards are to be deactivated.

16. The computer readable medium of claim 15 further comprising instructions for issuing new bank cards to replace the deactivated ones, or noting that replacement cards are to be issued.

17. The computer readable medium of claim 12 wherein instructions for determining said common point of compromise further comprise instructions for specifying a date range within which said potentially compromised bank cards were used at said common point of compromise.

18. The computer readable medium of claim 12 wherein instructions for identifying said other potentially compromised bank cards further comprise instructions for searching the bank card database using a query based upon said merchant to identify said other bank cards which were used at said merchant.

19. The computer readable medium of claim 18 wherein instructions for identifying said other potentially compromised bank cards further comprise instructions for specifying a date range within which said other bank cards were used at said common point of compromise.

20. The computer readable medium of claim 12 wherein:

a. said common point of compromise further comprises a plurality of common points of compromise, each of said plurality of common points of compromise corresponding to a merchant at which a plurality of said bank cards were used; and

b. instructions for identifying other bank cards used at said each of said plurality of common points of compromise.

21. The computer readable medium of claim 20 further comprising instructions for providing a list of said potentially compromised bank cards such that appropriate action can be taken to prevent fraudulent use thereof.

22. A bank card fraud detection and/or prevention method comprising:

a. identifying a first merchant associated with bank card transaction frequencies which exceed a predetermined threshold value indicative of potentially fraudulent bank card activity;

b. identifying a first plurality of bank cards used at said merchant associated with said transaction frequencies which exceed said threshold value;

c. from said first plurality of bank cards, identifying a second plurality of bank cards which have charge reversals; and

d. from said second plurality of bank cards, determining a common point of compromise, wherein said common point of compromise is a second merchant at which at least some of said second plurality of bank cards were used.

23. The method of claim 22 further comprising identifying other bank cards used at said second merchant, wherein said other bank cards are potentially compromised.

24. The method of claim 22 wherein said identifying bank card transaction frequencies which exceed a predetermined threshold value further comprises searching a bank card database using a bank card transaction frequency query.

25. The method of claim 24 wherein said bank card transaction frequency query is based upon exceeding said threshold value over a predetermined time interval.

26. The method of claim 25 wherein said time interval is a single day.

27. The method of claim 26 wherein said transaction frequency is one percent of all bank card transactions during said single day.

28. The method of claim 22 wherein said identifying said bank cards used at said merchant identified as being associated with said transaction frequencies which exceed said threshold value further comprises searching a bank card database based upon said merchant to identify bank cards which were used at said merchant.

29. The method of claim 22 further comprising providing a list of said potentially compromised bank cards which can be provided to the appropriate financial institutions and legal and/or regulatory authorities such that further action can be taken to prevent fraudulent use thereof.

30. The method of claim 29 further comprising deactivating the bank cards on said list of potentially compromised bank cards.

31. The method of claim 30 further comprising issuing new bank cards to replace the deactivated ones.

32. A computer-readable medium having computer-executable instructions for performing a bank card fraud detection and/or prevention method comprising:

a. searching a bank card database using a bank card transaction frequency query to identify a first merchant associated with bank card transaction frequencies which exceed a predetermined threshold value which is indicative of potentially fraudulent bank card activity;

b. searching the bank card database using a query based upon said first merchant to identify a first plurality of bank cards used at said first merchant;

c. from said first plurality of bank cards, identifying a second plurality of bank cards which have charge reversals; and

d. searching the bank card database using a query based upon said second plurality of bank cards to determine a common point of compromise, wherein said common point of compromise is a second merchant at which at least some of said second plurality of bank cards were used.

33. The computer-readable medium of claim 32 further comprising:

a. searching the bank card database using a query based upon said second merchant; and

b. identifying other bank cards used at said second merchant, wherein such other bank cards are potentially compromised.

34. The computer-readable medium of claim 32 wherein said bank card transaction frequency query is based upon exceeding said threshold value over a predetermined time interval.

35. The computer-readable medium of claim 34 wherein said time interval is a single day.

36. The computer-readable medium of claim 35 wherein said transaction frequency is one percent of all bank card transactions during said single day.

37. The computer readable medium of claim 32 further comprising instructions for generating a list of all bank cards associated with at least one of said first and second merchants, which bank cards are all potentially compromised, which list can be provided to the appropriate financial institutions and legal and/or regulatory authorities such that further action can be taken to prevent fraudulent use thereof.

38. The computer readable medium of claim 37 further comprising instructions for deactivating the bank cards on said list, or noting that such cards are to be deactivated.

39. The computer readable medium of claim 38 further comprising instructions for issuing new bank cards to replace the deactivated ones, or noting that replacement cards are to be issued.