Method and System for Identification By A Cardholder of Credit Card Fraud
First Claim
1. A method of classifying a transaction involving a card associated with an authorized user, comprising:
- receiving transaction data associated with the card at a detection machine;
determining whether the transaction data represents a potentially suspect transaction associated with the card;
if the transaction data represents a potentially suspect transaction, issuing a notification to the authorized user that requests confirmation of the potentially suspect transaction;
determining whether a response to the notification has been received from the authorized user, where the response is based on information that is known to the authorized user and is context-specific to the authorized user; and
based on the response, classifying the transaction data.
1 Assignment
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Accused Products
Abstract
A method for fraud detection leverages an existing financial institution'"'"'s fraud classification functionality, which produces a first level detection, with a “user-centric” classification functionality, which produces a “second” or more fine-grained detection regarding a potentially fraudulent transaction. After passing through an existing (“institution-centric”) fraud detection technique, a transaction that has been identified as potentially fraudulent is then subject to further analysis and classification at the “user” level, as it is the user is presumed to be the best source of knowledge of the legitimate credit card use. Information about the transaction is shared with the consumer, preferably via one or more near real-time mechanisms, such as SMS, email, or the like. Based on the user'"'"'s response (or lack thereof, as the case may be), one or more business rules in the institution'"'"'s fraud detection system can then take an appropriate action (e.g., no action, reverse the transaction if complete, deny the transaction if in-progress, or the like).
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Citations
23 Claims
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1. A method of classifying a transaction involving a card associated with an authorized user, comprising:
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receiving transaction data associated with the card at a detection machine; determining whether the transaction data represents a potentially suspect transaction associated with the card; if the transaction data represents a potentially suspect transaction, issuing a notification to the authorized user that requests confirmation of the potentially suspect transaction; determining whether a response to the notification has been received from the authorized user, where the response is based on information that is known to the authorized user and is context-specific to the authorized user; and based on the response, classifying the transaction data. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13)
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14. A data processing system, comprising:
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a processor; computer memory holding computer instructions for carrying out a fraud detection method comprising; receiving transaction data associated with a credit card; determining whether the transaction data represents a potentially suspect transaction associated with the credit card; if the transaction data represents a potentially suspect transaction, issuing a notification to an authorized user that requests confirmation of the potentially suspect transaction; determining whether a response to the notification has been received from the authorized user, where the response is based on information that is known to the authorized user and is context-specific to the authorized user; and based on the response, classifying the transaction data. - View Dependent Claims (15, 16, 17, 18)
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19. A computer program product for use in a data processing system comprising a computer-readable medium holding instructions that when executed by a processor direct a fraud detection mechanism to:
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receive an indication of a potentially suspect transaction associated with a card; issuing a notification to the authorized user that requests confirmation of the potentially suspect transaction; determining whether a response to the notification has been received from the authorized user, where the response is based on information that is known to the authorized user and is context-specific to the authorized user; and based on the response, classifying the transaction data. - View Dependent Claims (20, 21, 22)
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23. Apparatus for fraud detection, comprising:
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a processor; computer program memory holding computer instructions for directing a fraud detection mechanism to; receive an indication of a potentially suspect transaction associated with a card; issuing a notification to the authorized user that requests confirmation of the potentially suspect transaction; determining whether a response to the notification has been received from the authorized user, where the response is based on information that is known to the authorized user and is context-specific to the authorized user; and based on the response, classifying the transaction data.
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Specification