APPARATUS INCLUDING DATA BEARING MEDIUM FOR REDUCING FRAUD IN PAYMENT TRANSACTIONS USING A BLACK LIST

• US 20110022483A1
• Filed: 07/22/2009
• Published: 01/27/2011
• Est. Priority Date: 07/22/2009
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Hammad, Ayman
• Granted Patent: US 9,396,465 B2
• Time in Patent Office: Days
• US Class Current: 705/17
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A system, apparatus, and method for reducing fraud in electronic payment transactions. The apparatus includes a processor that executes instructions to implement a process to identify consumer or merchant devices that have been used in fraudulent transactions and prevent the authorization of future transactions that are initiated using those devices. By collecting device data as part of authorization messages and processing that data, devices that are used in fraudulent transactions with different merchants or involving different accounts may be identified and prevented from being the source of future transactions. This prevents future losses and reinforces the integrity of the transaction system.

Claims

1. An apparatus for reducing fraud in electronic payment transactions, comprising:

a processor configured to execute a set of instructions;

a memory coupled to the processor for storing the set of instructions;

and

the set of instructions stored in the memory, wherein when executed by the processor the instructions implement a process to

receive a plurality of authorization messages at a payment processor, wherein each authorization message includes data regarding a consumer device used in an electronic payment transaction, the same consumer device being used in each of the electronic payment transactions;

process the authorization messages to determine if the consumer device is associated with one or more fraudulent transactions; and

blacklist the consumer device if the consumer device is associated with one or more fraudulent transactions.

2. The apparatus of claim 1, wherein the plurality of authorization messages are generated from transactions involving more than one merchant.

3. The apparatus of claim 1, wherein the plurality of authorization messages are generated from transactions involving more than one account.

4. The apparatus of claim 1, wherein the implemented process further comprises denying authorization for a subsequent transaction if the device is blacklisted.

5. The apparatus of claim 1, wherein the data regarding the consumer device is one or more of a computer identifier, IP address, mobile phone identifier, or mobile phone number.

6. The apparatus of claim 1, wherein processing the authorization messages to determine if the consumer device is associated with one or more fraudulent transactions further comprises associating the consumer device with a plurality of declined transactions.

7. The apparatus of claim 1, wherein blacklisting the consumer device if the consumer device is associated with one or more fraudulent transactions further comprises:

determining an indicia for the consumer device; and

blacklisting the consumer device if the indicia exceeds a predetermined threshold.

8. The apparatus of claim 7, wherein the implemented process further comprises communicating information regarding the indicia to a merchant as part of an authorization process for a subsequent transaction.

9. A method of reducing fraud in electronic payment transactions, comprising:

receiving a plurality of authorization messages at a payment processor, wherein each authorization message includes data regarding a consumer device used in an electronic payment transaction, the same consumer device being used in each of the electronic payment transactions;

processing the authorization messages to determine if the consumer device is associated with one or more fraudulent transactions; and

blacklisting the consumer device if the consumer device is associated with one or more fraudulent transactions.

10. The method of claim 9, wherein the plurality of authorization messages are generated from transactions involving more than one merchant.

11. The method of claim 9, wherein the plurality of authorization messages are generated from transactions involving more than one account.

12. The method of claim 9, further comprising denying authorization for a subsequent transaction if the device is blacklisted.

13. The method of claim 9, wherein the data regarding the consumer device is one or more of a computer identifier, IP address, mobile phone identifier, or mobile phone number.

14. The method of claim 9, wherein processing the authorization messages to determine if the consumer device is associated with one or more fraudulent transactions further comprises associating the consumer device with a plurality of declined transactions.

15. The method of claim 9, wherein blacklisting the consumer device if the consumer device is associated with one or more fraudulent transactions further comprises:

determining an indicia for the consumer device; and

blacklisting the consumer device if the indicia exceeds a predetermined threshold.

16. The method of claim 9, further comprising communicating information regarding the indicia to a merchant as part of an authorization process for a subsequent transaction.

17. A method of reducing fraud in electronic payment transactions, comprising:

receiving an authorization message for a first transaction initiated by a device, the authorization message including a first account number;

receiving an authorization message for a second transaction initiated by the device, the authorization message including a second account number; and

blacklisting the device if the first transaction and the second transactions are declined.

18. The method of claim 17, wherein the device is a consumer device.

19. The method of claim 17, wherein the device is a merchant'"'"'s point of sale terminal.

20. The method of claim 17, wherein the authorization messages include a device identifier.