REDUCTION OF TRANSACTION FRAUD THROUGH THE USE OF AUTOMATIC CENTRALIZED SIGNATURE/SIGN VERIFICATION COMBINED WITH CREDIT AND FRAUD SCORING DURING REAL-TIME PAYMENT CARD AUTHORIZATION PROCESSES
First Claim
1. ) A payment authorization system comprising:
- a) A first computer system and software comprising;
i) an electronic payment processing system incorporating software;
a method for capturing data from the purchaser'"'"'s payment account;
a method for capturing purchase transaction data; and
a method of capturing an electronic copy of a purchaser'"'"'s signature;
ii) the capture of purchaser'"'"'s signature data from an electronic signature entry system;
the generation of signature feature set data from said purchaser'"'"'s signature data;
iii) the capture of said purchaser'"'"'s payment account data, including said payment account number;
iv) the capture of transaction data, including transaction amount and merchant identifier;
v) the transmission of the said signature feature set data, said account data and said transaction data to said purchaser'"'"'s payment account issuing bank as a purchase authorization request;
vi) and the receipt from said purchaser'"'"'s payment account issuing bank of the result of said purchase authorization requestb) a second computer system and software located at said purchaser'"'"'s payment account issuing bank location that receives said purchase authorization request andi) automatically separates out said signature feature set data, said account data, and said transaction data into its constituent components;
ii) automatically performs a signature match calculation by comparing said purchaser'"'"'s signature feature set data with a previously stored signature template created from previous signature feature data sets from said purchaser, and generates one or more signature feature set data mismatch scores from said match calculation that is indicative of the likelihood that the signature is either authentic or fraudulent;
iii) automatically analyzes said transaction data and said account data with pattern recognition software and/or fraud database analyses to identify high fraud risk transactions, and uses these analyses to generate one or more transaction fraud risk scores associated with the purchase request;
iv) automatically screens account data to identify high credit risk transactions, including but not limited to verifying that said purchaser'"'"'s payment account is in good standing and has sufficient purchasing capacity to approve said transaction amount;
v) automatically approves said purchase authorization request responsive to;
(1) said signature feature set data mismatch score being within a pre-determined acceptable range that would suggest the signature is authentic;
(2) said transaction fraud risk score being within a pre-determined acceptable range that would suggest the transaction is not fraudulent; and
(3) said account being in good standing and with sufficient purchasing capacity to support the purchase request;
vi) either automatically or after human review, declines said purchase authorization request responsive to one or more of the following(1) said signature feature set data mismatch score being outside of a pre-determined acceptable range that would suggest the signature may be a forgery;
(2) said transaction fraud risk score being outside of a pre-determined acceptable range that would suggest the transaction may be fraudulent;
or(3) said account not being in good standing;
(4) said account having insufficient purchasing capacity to support the purchase request;
vii) automatically transmits said purchase authorization request result to said first computer system
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Accused Products
Abstract
A dynamic signature/sign biometric verification system for detecting and preventing fraudulent transactions is described. The system comprises remote digital signature/sign input devices, a means to extract spatial and temporal features from the signature, a means to transmit the signature/sign features along with customer identifier information to a centralized signature/sign verification authority, a means for combining signature/sign feature verification with other forms of fraud detection technology, and a means for transmitting the results of a signature/sign verification back to the remote location where the signature/sign was captured. The system was primarily developed for use in payment card industries (e.g. credit cards, debit cards) but has applicability to other centralized signature/sign verification applications such as Automated Teller Machine authorizations and other identity theft detection and monitoring services.
323 Citations
20 Claims
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1. ) A payment authorization system comprising:
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a) A first computer system and software comprising; i) an electronic payment processing system incorporating software;
a method for capturing data from the purchaser'"'"'s payment account;
a method for capturing purchase transaction data; and
a method of capturing an electronic copy of a purchaser'"'"'s signature;ii) the capture of purchaser'"'"'s signature data from an electronic signature entry system; the generation of signature feature set data from said purchaser'"'"'s signature data; iii) the capture of said purchaser'"'"'s payment account data, including said payment account number; iv) the capture of transaction data, including transaction amount and merchant identifier; v) the transmission of the said signature feature set data, said account data and said transaction data to said purchaser'"'"'s payment account issuing bank as a purchase authorization request; vi) and the receipt from said purchaser'"'"'s payment account issuing bank of the result of said purchase authorization request b) a second computer system and software located at said purchaser'"'"'s payment account issuing bank location that receives said purchase authorization request and i) automatically separates out said signature feature set data, said account data, and said transaction data into its constituent components; ii) automatically performs a signature match calculation by comparing said purchaser'"'"'s signature feature set data with a previously stored signature template created from previous signature feature data sets from said purchaser, and generates one or more signature feature set data mismatch scores from said match calculation that is indicative of the likelihood that the signature is either authentic or fraudulent; iii) automatically analyzes said transaction data and said account data with pattern recognition software and/or fraud database analyses to identify high fraud risk transactions, and uses these analyses to generate one or more transaction fraud risk scores associated with the purchase request; iv) automatically screens account data to identify high credit risk transactions, including but not limited to verifying that said purchaser'"'"'s payment account is in good standing and has sufficient purchasing capacity to approve said transaction amount; v) automatically approves said purchase authorization request responsive to; (1) said signature feature set data mismatch score being within a pre-determined acceptable range that would suggest the signature is authentic; (2) said transaction fraud risk score being within a pre-determined acceptable range that would suggest the transaction is not fraudulent; and (3) said account being in good standing and with sufficient purchasing capacity to support the purchase request; vi) either automatically or after human review, declines said purchase authorization request responsive to one or more of the following (1) said signature feature set data mismatch score being outside of a pre-determined acceptable range that would suggest the signature may be a forgery; (2) said transaction fraud risk score being outside of a pre-determined acceptable range that would suggest the transaction may be fraudulent;
or(3) said account not being in good standing; (4) said account having insufficient purchasing capacity to support the purchase request; vii) automatically transmits said purchase authorization request result to said first computer system - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17)
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18. ) A centralized signature verification authority system comprising:
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a) a computer system and software at a company or individual'"'"'s location where a customer signs a document, comprising; i) a method to capture an electronic signature from a customer using an electronic signature entry system;
the generation of a set of signature feature data from said signature;ii) the capture of a customer identification data set provided by a centralized signature verification authority; iii) the transmission of said signature feature data set and said customer identification data set to a centralized signature verification authority as a signature verification request; iv) and the receipt from said trusted centralized signature verification authority of the result of said centralized signature verification authority signature verification request b) a second computer system and software located at said centralized signature verification authority'"'"'s location, which is physically separated from the location where said customer signs said document, comprising; i) means for accepting said signature verification request; ii) means for matching the customer'"'"'s identification data to an existing signature feature set template for that applicant stored in a database; iii) means for performing a match calculation from said signature feature set data received in the signature verification request with said existing signature feature set template for that customer; iv) means for determining whether said match calculation suggests that the customer'"'"'s identity is authentic based on the signature feature set data comparison with said signature feature set template v) means for combining the result of the signature feature set match with existing fraud screening methods in effect. vi) and means for providing the result of the said signature feature set data comparison to the company or individual requesting signature verification - View Dependent Claims (19, 20)
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Specification