Suspicious persons database

• US 7,246,740 B2
• Filed: 03/31/2004
• Issued: 07/24/2007
• Est. Priority Date: 04/03/2003
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Pate, Lance, Wallin, Mark, Swift, Amy
• Primary Examiner(s): PAIK, STEVE S
• Application Number:
  US10/813,915
• Publication Number:
  US 20040245330A1
• Time in Patent Office: 1,210 Days
• Field of Search: 235/379, 235/380, 235/381, 235/382, 235/383, 235/449, 235/487, 235/493, 705 42- 44
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Most financial transactions involving check deposits and cashing at automatic teller machines are often associated with high risk. Although conventional security measures for many automatic teller machines record financial transactions, the recorded events are typically viewed after suspicious or criminal activity has already occurred. Therefore, a financial institution may not know in advance whether requested financial transactions are of suspicious or fraudulent intent. The present teachings relate to a method of scoring customers prior to authorization in a manner so as to identify suspicious behavior or suspicious activity. The method also relates to marking suspicious individuals by storing related transaction information, such as biometric data, in a database for purposes of verifying identification information and scoring the validity of future financial transactions.

Claims

1. A method of processing financial transactions from a customer at an unmanned location, the method comprising:

acquiring customer identification information from at least one customer;

acquiring transaction information associated with one or more previous financial transactions performed by the customer, wherein the transaction information comprises information about a financial instrument and wherein the transaction information is different than the customer identification information;

determining suspicious activity associated with the one or more previous financial transactions by identifying one or more validation errors in the transaction information wherein the validation errors comprise at least one of the group consisting of amount mismatch, fraudulent endorsement, magnetic ink not detected, altered magnetic ink recognition number, altered payee, negotiable instrument identified as stolen, negotiable instrument identified as stop pay, negotiable instrument identified as already cashed, Mod 10 validation failure, credit header validation failure, negotiable instrument type mismatch, postdated negotiable instrument, negotiable instrument date mismatch, and negotiable instrument does not exist in positive pay file;

calculating a suspicious activity score for the customer wherein the suspicious activity score is based at least in part on the validation errors such that the suspicious activity score is indicative of a level of suspicion associated with the one or more previous financial transactions performed by the customer;

storing the suspicious activity score in a database wherein the database associates the suspicious activity score with the customer identification information that identifies the customer;

acquiring customer identification information and transaction information for a current financial transaction;

determining suspicious activity associated with the current financial transaction by identifying one or more validation errors in the transaction information associated with the current financial transaction;

using the customer identification information to retrieve the suspicious activity score stored in the database that is indicative of a level of suspicion associated with the one or more previous financial transactions conducted by the consumer;

modifying the suspicious activity score based at least in part on validation errors in the transaction information associated with the current financial transaction; and

authorizing the current financial transaction based at least in part on the whether the suspicious activity score is acceptable.

2. The method of claim 1, wherein processing financial transactions comprises cashing a paper drafted check.

3. The method of claim 1, wherein processing financial transactions at an unmanned location comprises processing financial transactions at an automatic teller machine (ATM).

4. The method of claim 1, wherein acquiring customer identification information comprises acquiring at least one of the group comprising a name, social security number, a driver'"'"'s license number, and biometric information.

5. The method of claim 4, wherein the biometric information is an image.

6. The method of claim 4, wherein the method further comprises comparing the biometric information to previously stored biometric information in the database.

7. The method of claim 6, wherein the method further comprises contacting a customer service agent if the biometric information matches at least one of the previously stored biometric information in the database.

8. The method of claim 7, wherein the method further comprises verifying the identity of the customer by the customer service agent if the biometric information matches at least one of the previously stored biometric information in the database.

9. The method of claim 8, wherein the method further comprises declining the current financial transaction for the customer if the customer service agent determines that the customer is engaging in suspicious activity.

10. The method of claim 1, wherein the suspicious activity comprises suspicious behavior.

11. The method of claim 10, wherein the method further comprises verifying the suspicious activity score by the customer service agent if the suspicious activity score is above a pre-selected threshold.

12. The method of claim 11, wherein the method further comprises declining the current financial transaction by the customer service agent if the suspicious activity score is above a pre-selected threshold.

13. A system for processing financial transactions from customers at an unmanned location, the system comprising:

an interactive component positioned at the unmanned location, wherein the interactive component is configured to obtain transaction information relating to a financial transaction performed by a customer, wherein the transaction information comprises information about a financial instrument and wherein the interactive component is further configured to obtain customer identification information that identifies the customer, wherein the customer identification information is different than the transaction information;

a calculating component that generates a suspicious activity score for the customer wherein the suspicious activity score is based at least in part on one or more validation errors in the transaction information and wherein the suspicious activity score is indicative of a level of suspicion associated with customer activity and wherein the calculating component periodically modifies the suspicious activity score based on the customer activity, wherein the validation errors comprise at least one of the group consisting of amount mismatch, fraudulent endorsement, magnetic ink not detected, altered magnetic ink recognition number, altered payee, negotiable instrument identified as stolen, negotiable instrument identified as stop pay, negotiable instrument identified as already cashed, Mod 10 validation failure, credit header validation failure, negotiable instrument type mismatch, postdated negotiable instrument, negotiable instrument date mismatch, and negotiable instrument does not exist in positive pay file;

a storage component that records the suspicious activity score and associates the suspicious activity score with the customer identification information; and

a processing component that receives transaction information from the interactive component and identifies suspicious activity relating to a current financial transaction by obtaining the customer identification information associated with the current financial transaction and accessing the recorded suspicious activity score in the storage component associated with the customer identification information and by modifying the suspicious activity score based at least in part on validation errors in the transaction information associated with the current financial transaction.

14. The system of claim 13, wherein the interactive component comprises an automatic teller machine (ATM).

15. The system of claim 13, wherein the customer identification information comprises an image.

16. The system of claim 13, wherein the customer identification information comprises a fingerprint.

17. The system of claim 16, wherein the financial transaction involves cashing a check.

18. The system of claim 17, wherein the transaction information comprises information on the check.

19. The system of claim 13, wherein the storage component is a database.

20. The system of claim 13, wherein the suspicious activity includes fraud.