TWO STAGE RISK MODEL BUILDING AND EVALUATION
First Claim
1. A system comprising:
- at least one processor;
a memory connected to the at least one processor; and
at least one module that when loaded into the at least one processor causes the at least one processor to;
build a first stage of a two stage risk model, the first stage of the two stage risk model focused on capturing currently known patterns associated with bad transactions; and
build a second stage of the two stage risk model, the second stage rejecting transactions that are approved by a current risk model but that are actually bad.
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Abstract
A two stage model in which the first stage of the model applies a different weighting schema to different types of transactions in a transaction-based system is described. The first stage of the model focuses on capturing currently known patterns that indicate bad transactions. The second stage of the model focuses on rejecting transactions that are approved by the current model, with the objective of maximizing a measurable goal. Business knowledge is used to lower the cost of finding the optimal solution of the model by estimating parameters provided to the first and second stages of the model. Evaluation of the model accounts for retry transactions and for churn. Parameters associated with the model that maximizes the goal can be selected for a future model.
72 Citations
20 Claims
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1. A system comprising:
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at least one processor; a memory connected to the at least one processor; and at least one module that when loaded into the at least one processor causes the at least one processor to; build a first stage of a two stage risk model, the first stage of the two stage risk model focused on capturing currently known patterns associated with bad transactions; and build a second stage of the two stage risk model, the second stage rejecting transactions that are approved by a current risk model but that are actually bad. - View Dependent Claims (2, 3, 4, 5, 6, 7)
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8. A method comprising:
creating a two stage risk analysis model within the memory of a computer, the two stage risk analysis model comprising a first stage of risk analysis for a computerized transaction-based system and a second stage of risk analysis for the computerized transaction-based system, the first stage of risk analysis identifying patterns of characteristics of bad transactions, the second stage of risk analysis rejecting actually bad transactions approved by a current risk model. - View Dependent Claims (9, 10, 11, 12, 13)
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14. A computer-readable storage medium comprising computer-readable instructions which when executed cause at least one processor of a computing device to:
evaluate a current model and a two stage risk model, the evaluation based on a measurable metric. - View Dependent Claims (15, 16, 17, 18, 19, 20)
Specification