Merchandise return fraud prevention system and method

• US 6,016,480 A
• Filed: 11/07/1997
• Issued: 01/18/2000
• Est. Priority Date: 11/07/1997
• Status: Expired due to Term

• Current Assignee: Image Data Corporation, LexisNexis Risk Solutions, Inc. (RELX PLC)
• Original Assignee: Image Data Corporation
• Inventors: Houvener, Robert C., Hoenisch, Ian P.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Nguyen, Nga B.
• Application Number:
  US08/966,182
• Time in Patent Office: 802 Days
• Field of Search: 705/21, 705/22, 705/27, 705/16, 235/379, 235/380, 235/382, 379/112, 379/91, 382/2
• US Class Current: 705/21
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/203 Inventory monitoring
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/40145 Biometric identity checks
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G07C 9/253 visually
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07G 3/003 Anti-theft control theft alarms G08B13/00

Abstract

A system and method for return fraud prevention is provided, which includes a point of return terminal having an input means for accepting, identifying information presented by a person returning at least one article of merchandise and has at least one display unit for displaying digital photographic images of persons and textual information. The system further includes at least one remote database site having stored therein a database comprising a plurality of digital photographic images of persons to be identified. Linking the return terminal and the remote database site is a communications link, which allows data to be interchanged between the point of return terminal and the remote database site. The veracity of the system is ensured by including a means to verifying that the point of return terminal is authorized to access the remote database site, a means for verifying that an identifier present at the return terminal is also authorized to access the remote database site, and a means for verifying that the identifier present at the point of return terminal has compared the digital photographic images displayed on the return terminal display with the physical appearance of the person returning the merchandise and that a match exists between at least one of the displayed photographic images and the physical appearance of the person returning the merchandise.

Claims

1. A return fraud prevention system comprising:

a point of return terminal located at a point of return, said terminal having at least one input device for inputting an identifying information unit presented by a person returning at least one article of merchandise at a return location;

at least one display device located at said point of return, said at least one display device for displaying digital photographic images of persons to be identified and textual information;

at least one remote database site having stored therein a database comprising a plurality of digital photographic images for identification purposes, each said stored digital photographic image mapped to at least one identifying information unit;

a communication link linking said point of return terminal and said remote database site to interchange data between the two;

a means for verifying that a clerk present at said point of return terminal has compared any digital photographic images displayed on said point of return terminal display with the physical appearance of the person returning said merchandise and that a match exists between at least one displayed digital photographic image and the physical appearance of said person returning said merchandise; and

a return history database for storing return transaction information, including information identifying a person initiating a return transaction and information identifying a clerk responsible for processing said return transaction, as return transaction records.

2. The return fraud prevention system of claim 1, further comprising a return history analyzer for analyzing said return history records and for calculating return history data, said return history data for display at said point of return terminal to assist the clerk at said terminal in identifying when a fraudulent return transaction may be occurring.

3. The return fraud prevention system of claim 1 further comprising a means for verifying that said point of return terminal is authorized to access the remote database site.

4. The return fraud prevention system of claim 1 further comprising a means for verifying that a clerk present at the point of return terminal is authorized to access the remote database site.

5. The return fraud prevention system of claim 2 further comprising a clerk specific input to indicate that said clerk present at said point of return terminal has reviewed said return history data displayed on said point of return terminal display.

6. The return fraud prevention system of claim 5, wherein said clerk specific input to indicate that said clerk has reviewed said return history data and said means for verifying that a clerk present at said point of return terminal has compared any digital photographic images displayed on said point of return terminal display with the physical appearance of the person returning said merchandise and that a match exists comprise a single, clerk specific input.

7. The return fraud prevention system of claim 1, wherein said means for verifying that said clerk present at said point of return terminal has compared said at least one digital photographic image displayed on said point of return terminal display with the physical appearance of the person returning said merchandise and that a match exists comprises a personal identification number, which is input by said clerk using an input means included in said point of return terminal.

8. The return fraud prevention system of claim 7, wherein said personal identification number comprises a keystroke sequence and wherein said input means comprises a keypad.

9. The return fraud prevention system of claim 5, wherein said clerk specific input to indicate that said clerk present at said point of return terminal has reviewed said return history data displayed on said point of return terminal display comprises a personal identification number, which is input by said clerk using an input means included in said point of return terminal.

10. The return fraud prevention system of claim 9, wherein said personal identification number comprises a keystroke sequence and wherein said input means comprises a keypad.

11. The return fraud prevention system of claim 4, wherein said means for verifying that a clerk present at the point of return terminal is authorized to access the remote database site comprises an access authority information unit unique to said clerk, a database comprising a plurality of valid access authority information units located at said remote database site, and a means for comparing, at said remote database site, said clerk'"'"'s access authority information unit with said access authority information units stored in said valid access authority information unit database to determine if said clerk'"'"'s access authority information unit matches a valid access authority information unit.

12. The return fraud prevention system of claim 11, wherein said access authority information unit comprises a personal identification number, which is input into said point of return terminal using a keypad.

13. The return fraud prevention system of claim 11, wherein said access authority information unit is embedded in an electronic key token, which is read by said point of return terminal.

14. A return fraud prevention system comprising:

a point of return terminal located at a point of return, said terminal having at least one input device for inputting an identifying information unit presented by a person returning at least one article of merchandise at a return location;

at least one display device located at said point of return, said at least one display device for displaying digital photographic images of persons to be identified and return history data;

at least one remote database site having stored therein a database comprising a plurality of digital photographic images for identification purposes, each said stored digital photographic image mapped to at least one identifying information unit, said remote database site further having stored therein a return history database in which return history records are stored, each said return history record mapped to at least one said identifying information unit;

a communication link linking said point of return terminal and said remote database site to interchange data between the two;

a means for verifying that a clerk present at said point of return terminal has compared any digital photographic images displayed on said point of return terminal display with the physical appearance of the person returning said merchandise and that a match exists between at least one displayed digital photographic image and the physical appearance of said person returning said merchandise; and

a return history analyzer for analyzing return history records and for calculating return history data, said return history data for display on said at least one display device to assist the clerk at said point of return in identifying when a fraudulent return transaction may be occurring.

15. A method of preventing the fraudulent return of merchandise comprising:

storing a plurality of digital photographic images of persons in an identification database located at least one remote database site, each of said digital photographic images corresponding to at least one identifying information unit associated with a person to be identified;

accepting an identifying information unit presented by a person returning at least one article of merchandise at a return location and inputting said identifying information unit into a point of return terminal having at least one display device for displaying at least digital photographic image;

establishing communication between said point of return terminal and at least one remote database site;

transmitting said identifying information unit presented by said person returning at least one article of merchandise to said remote database site;

searching said identification database and retrieving any digital photographic images stored therein corresponding to said transmitted identifying information unit;

transmitting any retrieved digital photographic images to said point of return terminal over said communications link;

said at least one photographic image to said return terminal;

displaying at least one of said retrieved digital photographic images on said at least one display device at said point of return terminal;

comparing said at least one displayed photographic image with the physical appearance of the person returning the merchandise;

inputting clerk specific data into said return terminal to indicate that a clerk handling the merchandise return transaction has compared the displayed digital photographic images with the physical appearance of the person returning the merchandise and that a match exists;

transmitting said clerk specific data and return transaction information to said remote database site; and

storing said return transaction information in return history records in a return history database located at said least one remote database site, each said return history record mapped to at least one identifying information unit.

16. The method of preventing the fraudulent return of merchandise of claim 15, further comprising the steps of:

upon receipt of an identifying information unit at said at least one remote database site, searching said return history database and retrieving any return history records mapped to said received identifying information unit;

analyzing said retrieved return history records and calculating return history data corresponding to said retrieved return history records;

transmitting said return history data to said point of return terminal and displaying said return history data on said at least one display device at said point of return terminal;

reviewing said return history data at said point of return terminal; and

entering a clerk specific input indicating that the clerk present at the point of return terminal has reviewed the displayed return history data.

17. The method of prevention the fraudulent return of merchandise of claim 16 further comprising the steps of:

if a return transaction is accepted, transmitting return transaction information regarding the merchandise being returned to said remote database site; and

updating said return history database by storing said return transaction information as a return transaction record mapped to said identifying information presented by said person returning said merchandise.