APPORTIONING FRAUD LIABILITY
First Claim
Patent Images
1. A method comprising:
- receiving, at a first time, a transmission containing a report of unauthorized access to financial account information of one or more accounts sufficient for completing one or more financial transactions using the financial account information, wherein the completed one or more financial transactions define a first fraud type; and
for a predetermined period extending before and after the first time, quantifying a set of amounts including;
without using the financial information of the one or more accounts;
all types of fraud; and
only the first fraud type;
andusing only of the financial information of the one or more accounts;
all types of fraud; and
only the first fraud type;
andderiving, for a set of fraudulent financial transactions occurring within the predetermined period using the financial account information of the one or more accounts, a total settlement reimbursement amount from the quantified set of amounts.
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Accused Products
Abstract
After receiving a notice as to the occurrence of an unauthorized access to financial account information for one or more accounts sufficient for completing one or more financial transactions using the financial account information, a financial service provider assesses the liability for the particular compromise event by analyzing the industry-wide distribution of fraud that would have occurred had the compromise event not occurred, and calculates an incremental amount of fraud that accrued as a result of the compromise event. The incremental fraud is then apportioned to the responsible parties.
66 Citations
25 Claims
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1. A method comprising:
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receiving, at a first time, a transmission containing a report of unauthorized access to financial account information of one or more accounts sufficient for completing one or more financial transactions using the financial account information, wherein the completed one or more financial transactions define a first fraud type; and for a predetermined period extending before and after the first time, quantifying a set of amounts including; without using the financial information of the one or more accounts; all types of fraud; and only the first fraud type; and using only of the financial information of the one or more accounts; all types of fraud; and only the first fraud type; and deriving, for a set of fraudulent financial transactions occurring within the predetermined period using the financial account information of the one or more accounts, a total settlement reimbursement amount from the quantified set of amounts. - View Dependent Claims (2, 3, 4, 5)
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6. A method comprising:
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receiving a report of a compromise event including a date and one or more compromised accounts; establishing an event window based upon a predetermined period of time beginning before and ending on or after the date; determining, over the event window, a first financial fraud distribution of a first fraud type within a plurality of fraud types, wherein the first financial fraud distribution is computed from fraudulent transaction data excusive of the compromised accounts; determining, over the event window, a second financial fraud distribution of the first fraud type within the plurality of fraud types, wherein the second financial fraud distribution is computed from fraudulent transaction data inclusive only of the compromised accounts; comparing the first and second financial fraud distributions to a threshold criterion, wherein a determination is made that the second financial fraud distribution is not attributable to chance variation; determining, over the event window, an incremental amount of fraud wherein a difference is computed between; a reported amount of fraud of the first fraud type attributable to the compromise event; and
,an expected amount of fraud of the first fraud type attributable to the compromise event based upon an industry fraud baseline; producing a ratio of the incremental amount of fraud to the reported amount of fraud attributable to the compromise event; and calculating an amount of fraud liability by multiplying the ratio times an amount of accumulated fraud corresponding to; the compromise event; and occurring within the event window. - View Dependent Claims (7, 8, 9, 10, 11, 12)
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13. A system comprising:
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a database including; financial transactions for a plurality of accounts; and information for each the account; a network; a computing device in communication with the database and the network; means, using the computing device, for receiving, at a first time, a transmission containing a report of unauthorized access to financial account information of one or more accounts sufficient for completing one or more financial transactions using the financial account information, wherein the completed one or more financial transactions define a first fraud type; and means, using the computing device, for a predetermined period extending before and after the first time, for quantifying a set of amounts including; without using the financial account information of the one or more accounts; all types of fraud; and only the first fraud type; using only of the financial information of the one or more accounts; all types of fraud; and only the first fraud type; and means, using the computing device, for deriving, for a set of fraudulent financial transactions occurring within the predetermined period using the financial account information of the one or more accounts, a total settlement reimbursement amount from the quantified set of amounts. - View Dependent Claims (14, 15, 16, 17, 18)
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19. In a network having a computing device in communication with a database including financial transactions for a plurality of accounts and information for each the account, a system comprising:
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means for receiving a report of a compromise event including a date and one or more compromised said accounts; means for establishing an event window based upon a predetermined period of time beginning before and ending on or after the date; means for determining, over the event window, a first financial fraud distribution of a first fraud type within a plurality of fraud types, wherein the first financial fraud distribution is computed from fraudulent transaction data excusive of the compromised accounts; means for determining, over the event window, a second financial fraud distribution of the first fraud type within the plurality of fraud types, wherein the second financial fraud distribution is computed from fraudulent transaction data inclusive only of the compromised accounts; means for comparing the first and second financial fraud distributions to a threshold criterion, wherein a determination is made that the second financial fraud distribution is not attributable to chance variation; means for determining, over the event window, an incremental amount of fraud wherein a difference is computed between; a reported amount of fraud of the first fraud type attributable to the compromise event; and
,an expected amount of fraud of the first fraud type attributable to the compromise event based upon an industry fraud baseline; means for producing a ratio of the incremental amount of fraud to the reported amount of fraud attributable to the compromise event; and means for calculating an amount of fraud liability by multiplying the ratio times an amount of accumulated fraud corresponding to; the compromise event; and occurring within the event window. - View Dependent Claims (20, 21, 22, 23, 24, 25)
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Specification