METHOD AND SYSTEM FOR DETECTING FRAUD IN A CREDIT CARD TRANSACTION OVER THE INTERNET

• US 20080281743A1
• Filed: 07/17/2008
• Published: 11/13/2008
• Est. Priority Date: 07/28/1997
• Status: Abandoned Application

• Current Assignee: John Philip Pettit
• Original Assignee: John Philip Pettit
• Inventors: PETTIT, JOHN PHILIP
• Application Number:
  US12/175,191
• Publication Number:
  US 20080281743A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• 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 30/0225 Avoiding frauds
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 30/0635 Processing of requisition or of purchase orders
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 50/265 Personal security, identity or safety

Abstract

A method and system for detecting fraud in a credit card transaction between consumer and a merchant over the internet. The method and system comprises obtaining credit card information relating to the transaction from the consumer; and verifying the credit card information based upon a variety of parameters. The variety of parameters are weighted so as to provide a merchant with a quantifiable indication of whether the credit card transaction is fraudulent. In so doing, an integrated verification system is provided which allows a merchant, or the like, to accurately and efficiently determine the validity of a transaction over the internet.

Claims

1. A system for detecting fraud in a credit card transaction between consumer and a merchant over the internet comprising:

means for obtaining credit card information relating to the transaction from the consumer;

means for verifying the credit card information based upon a plurality of parameters comprising;

a) means for obtaining information about other transactions that have utilized an internet address that is identified with the credit card transaction;

b) means for constructing a map of credit card numbers based upon the other transactions;

c) means for utilizing the map of credit card numbers to determine if the credit card transaction is valid.

2. The system of claim 1 wherein the plurality of parameters include a consistency check, a history check, an automatic verification system and an internet identification system.

3. The system of claim 2 wherein the history check includes a database which can be accessed and supplemented by other merchants.

4. The system of claim 2 wherein the internet identification system includes a database which can be accessed and supplemented by other merchants.

5. A computer readable medium containing program instructions for detecting fraud in a credit card transaction between consumer and a merchant over the internet, the program instructions configured for:

obtaining credit card information relating to the transaction from the consumer;

verifying the credit card information based upon a plurality of parameters by;

a) obtaining information about other transactions that have utilized an internet address that is identified with the credit card transaction;

b) constructing a map of credit card numbers based upon the other transactions and;

c) utilizing the map of credit card numbers to determine if the credit card transaction is valid.

6. The computer readable medium of claim 5 wherein the plurality of parameters include a consistency check, a history check, an automatic verification system and an internet identification system.

7. The computer readable medium of claim 6 wherein the history check includes a database which can be accessed and supplemented by other merchants.

8. The computer readable medium of claim 6 wherein the internet identification system includes a database which can be accessed and supplemented by other merchants.