System and Method for Early Detection of Fraudulent Transactions

• US 20110238564A1
• Filed: 03/25/2011
• Published: 09/29/2011
• Est. Priority Date: 03/26/2010
• Status: Abandoned Application

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Delery, Richard Louis, Lim, Kwang Hyun
• Application Number:
  US13/072,356
• Publication Number:
  US 20110238564A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/3223 Realising banking transactions through M-devices
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/42 Confirmation, e.g. check or permission by the legal debtor of payment
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation
• 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 40/03 Credit; Loans; Processing thereof

Abstract

Systems, methods, and computer-readable media are disclosed for improved early detection and alerts related to fraudulent transactions. Certain embodiments involve sending an alert message to a mobile device associated with a portable consumer device. The alert includes notification of a recent transaction related to an account that is associated with the portable consumer device. A reply message is then received in response to the alert message. The response may indicate that the recent transaction is fraudulent. A risk engine is then updated with data associated with the reply message. In one potential additional embodiments, analysis and projections of potential future fraud are created or updated based on the reply message.

Claims

1. A method comprising:

sending an alert message to a mobile device associated with a portable consumer device, wherein the alert message provides notification of a recent transaction related to an account that is associated with the portable consumer device;

receiving a reply message in response to the alert message, wherein the reply message indicates that the recent transaction is fraudulent; and

updating a risk engine with data associated with the reply message.

2. The method of claim 1, wherein updating the risk engine with data associated with the reply message comprises configuring the risk engine to identify other potential fraudulent transactions.

3. The method of claim 1, wherein updating the risk engine with data associated with the reply message comprises increased monitoring of other transactions originating from a merchant that was involved with the recent transaction.

4. The method of claim 1, wherein updating the risk engine with data associated with the reply message comprises increased monitoring of a set of similar merchants to identify other potentially fraudulent transactions.

5. The method of claim 4 wherein the set of similar merchants comprise merchants within a pre-determined geographical area.

6. The method of claim 1, wherein the portable consumer device is a cellular phone.

7. The method of claim 6, wherein the mobile device is the cellular phone.

8. The method of claim 1 further comprising sending a notifying message to an issuer in response to the reply message.

9. The method of claim 3 further comprising sending a notifying message to the merchant indicating a prediction of future fraudulent transactions.

10. The method of claim 1 wherein the risk engine comprises a database, and the database comprises alert data;

wherein the alert message is generated using the recent transaction and the alert data; and

wherein updating the risk engine with data associated with the reply message comprises modifying the alert data.

11. The method of claim 10 wherein the database further comprises user submitted data that is present prior to the sending of the alert message.

12. The method of claim 10 wherein the alert message is further generated using a merchant identifier to determine a message template that is used to generate the alert message, and wherein the alert message includes information related to the recent transaction.

13. The method of claim 10 wherein the database further comprises a plurality of issuer data, and wherein the alert message further comprises the plurality of issuer data from the database.

14. The method of claim 1 wherein the mobile device is further associated with a third party user.

15. The method of claim 1 further comprising sending the alert message to a second mobile device that is associated with the portable consumer device.

16. A system comprising:

a non-transitory computer readable storage medium; and

a processor coupled to the computer readable storage medium, wherein the processor is configured to execute program code stored on the computer readable storage medium to perform a method comprising;

initiating an alert message to a mobile device associated with a portable consumer device, wherein the alert message provides notification of a recent transaction related to an account that is associated with the portable consumer device;

receiving a reply message in response to the alert message; and

updating a risk engine with data associated with the reply message.

17. The system of claim 16 wherein the risk engine comprises a database, and the database comprises alert data;

wherein the alert message is generated using the recent transaction and the alert data; and

wherein updating the risk engine with data associated with the reply message comprises modifying the alert data.

18. The system of claim 16 wherein the method further comprises sending a notifying message to a merchant indicating a prediction of future fraudulent transactions.

19. The system of claim 16, wherein updating the risk engine with data associated with the reply message comprises increased monitoring of a set of similar merchants to identify other potentially fraudulent transactions.

20. The system of claim 19 wherein updating the risk engine with data associated with the reply message comprises configuring the risk engine to identify other potential fraudulent transactions based on reply data indicating that the recent transaction was not fraudulent.