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

• US 20100063917A1
• Filed: 11/25/2009
• Published: 03/11/2010
• Est. Priority Date: 07/28/1997
• Status: Active Grant

• Current Assignee: John Philip Pettitt
• Original Assignee: John Philip Pettitt
• Inventors: Pettitt, John Philip
• Granted Patent: US 7,752,084 B2
• 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 computer-implemented method is disclosed, where first information that is related to a current commercial transaction that is being evaluated for fraud is received, either directly or indirectly, from a consumer through an online service or internet. The computer obtains an internet address from which the first information is received from the consumer. In response to obtaining the internet address, the computer accesses at least one database to obtain a second information on a plurality of commercial transactions that have been previously associated with the internet address from which the first information is received from the consumer. An indication is produced on whether the current commercial transaction is fraudulent based on correlating at least one subset of the second information and at least one subset of the first information.

Claims

1. A computer-implemented method comprising:

receiving, either directly or indirectly from a consumer through an online service or internet, a first information that is related to a current commercial transaction that is being evaluated for fraud, wherein the first information includes credit card information;

obtaining an internet address from which the first information is received from the consumer;

in response to obtaining the internet address accessing at least one database to obtain a second information on a plurality of commercial transactions that have been previously associated with the internet address from which the first information is received from the consumer; and

producing an indication on whether the current commercial transaction is fraudulent based on correlating at least one subset of the second information and at least one subset of the first information.

2. The computer-implemented method of claim 1, wherein the second information accessed from the at least one database is aggregated from a plurality of merchants over time.

3. The computer-implemented method of claim 1, further comprising applying a plurality of parameters to the at least one subset of the first information for analyzing the at least one subset of the first information for fraud.

4. The computer-implemented method of claim 3, further comprising weighting the plurality of parameters based on relative importance of a respective parameter as determined by characteristics of the current commercial transaction that is being evaluated for fraud.

5. The computer-implemented method of claim 3, further comprising combining information from application of the plurality of parameters to the at least one subset of the first information for producing the indication on whether the current commercial transaction is fraudulent.

6. The computer-implemented method of claim 3, wherein the plurality of parameters includes at least an internet identification verification parameter for determining if the internet address from which the first information is received from the consumer is associated with fraud.

7. The computer-implemented method of claim 1, wherein the first information further includes at least:

email address of the consumer, and shipping address.

8. The computer-implemented method of claim 1, further comprising determining whether the internet address is consistent with one or more internet addresses being used in commercial transactions utilizing the credit card information.

9. A computer system comprising:

at least one database of internet addresses and corresponding commercial transactions;

at least one internet identification verification component that is in communication with the at least one database of internet addresses and corresponding commercial transactions;

wherein the at least one internet identification verification component is operable to create a correlation between information on past commercial transactions and a respective internet address of a consumer associated with a current commercial transaction that is being evaluated for fraud; and

at least one fraud detection component that is operable to create an integrated indication of whether the current commercial transaction is fraudulent based on at least the correlation created by the at least one internet identification verification component.

10. The system of claim 9, further comprising a controller that is operable for receiving through the internet from the consumer associated with the current commercial transaction, information related to the current commercial transaction including credit card information and the respective internet address of the consumer.

11. The system of claim 9, further comprising a plurality of parameter components other than the at least one internet identification verification component for checking at least one subset of parameters from a plurality of parameters based on characteristics of the current commercial transaction.

12. The system of claim 11, wherein the plurality of parameters is weighted based on a predetermined set of criteria triggered by one or more characteristics of the current commercial transaction.

13. The system of claim 11, wherein the plurality of parameter components and the at least one internet identification verification component have access to information, aggregated from a plurality of merchants over time, on commercial transactions including corresponding internet address information of the consumer.

14. The system of claim 11, wherein the at least one fraud detection component receives input from at least a subset of the plurality of parameter components.

15. A system comprising:

at least one controller for receiving, either directly or indirectly, from a consumer through an online service or internet, a first information that is related to a current commercial transaction that is being evaluated for fraud and an internet address from which the first information is received, wherein the first information includes credit card information;

at least one internet identification verification component, wherein the at least one internet identification verification component is operable to create a correlation between the first information and a second information on a plurality of commercial transactions that have been previously associated with the internet address from which the first information is received; and

at least on fraud detection component for producing an indication on whether the current commercial transaction is fraudulent based on at least the correlation between the first information and a second information on a plurality of commercial transactions that have been previously associated with the internet address from which the first information is received.

16. The system of claim 15, further comprising at least one database for storing at least the second information on a plurality of commercial transactions that have been previously associated with the internet address from which the first information is received.

17. The system of claim 15, further comprising at least one database for storing internet addresses and corresponding commercial transactions.

18. The system of claim 15, further comprising a plurality of parameter components other than the at least one internet identification verification component for checking at least one subset of parameters from a plurality of parameters based on characteristics of the current commercial transaction, and wherein the plurality of parameter components and the at least one internet identification verification component have access to information, aggregated from a plurality of merchants over time, on commercial transactions including corresponding internet address information of the consumer.

19. The system of claim 18, wherein the plurality of parameters is weighted based on a predetermined set of criteria triggered by one or more characteristics of the current commercial transaction.

20. The system of claim 18, wherein the at least one fraud detection component receives input from at least a subset of the plurality of parameter components.