Method and system for detecting possible frauds in payment transactions

• US 7,610,040 B2
• Filed: 08/22/2005
• Issued: 10/27/2009
• Est. Priority Date: 02/21/2003
• Status: Expired due to Term

• Current Assignee: InterDigital CE Patent Holdings SAS (InterDigital, Inc.)
• Original Assignee: Swisscom Mobile AG (Government of Switzerland)
• Inventors: Cantini, Renato, Busch Lauper, Karin
• Primary Examiner(s): D AGOSTA, STEPHEN M
• Application Number:
  US11/209,138
• Publication Number:
  US 20050278192A1
• Time in Patent Office: 1,527 Days
• Field of Search: 455/406, 455/407, 455/408, 455/410, 455/411, 705/38, 705/39, 379/189, 340/5.9
• US Class Current: 455/410
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3223 Realising banking transactions through M-devices
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/346 Cards serving only as information carrier of service
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G06Q 20/389 Keeping log of transactions for guaranteeing non-repudiation of a transaction
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

Method for detecting possible frauds in payment transactions between at least two partners (1, 2),

• • the payment transaction data and/or payment authorization data being transmitted over at least one mobile radio network,
  • at least one multivalued parameter used for detecting a possible fraud attempt being determined in said mobile radio network,
  • said payment transactions being performed over at least one payment service provider (4),
  • at least a second multivalued parameter used for detecting a possible fraud attempt being determined by said payment service provider (4),
  • and certain combinations of said first and second parameters are sought in said fraud detection module in order to detect fraud attempts.

Claims

1. Method for detecting possible frauds in payment transactions between at least two partners, said method comprising the steps of:

transmitting the payment transaction data and/or payment authorization data over at least one mobile radio network,

using at least one multivalued parameter provided by the mobile radio network for detecting a possible fraud attempt being determined in said mobile radio network, wherein said multivalued parameter is a parameter that has a value taken from more than two values,

performing said payment transactions over at least one payment service provider,

sending to said mobile radio network at least a second multivalued parameter for detecting a possible fraud attempt, said second multivalue parameter being determined by said payment service provider,

searching certain combinations of said first and second parameters in order to detect fraud attempts,

performing tests for detecting possible frauds before each payment transaction, and

performing said tests at least partially in the infrastructure of said mobile radio network, wherein

said at least one multivalued parameter includes at least one of the following parameters;

location of the first partner,

identity of the mobile radio network,

location of the second partner,

trajectory of the first partner,

trajectory of the second partner,

used combination of mobile device and identification module,

transmission channel that is used for the payment transaction,

mobile device use profile of the first partner,

mobile device use profile of the second partner,

manual and/or unusual choice of the used payment service, and

temporal information including time and/or date, and/or day of the week, and further wherein

said second multivalued parameter includes at least one of the following parameters;

used payment service,

used money account,

balance on the used money account,

payment service use profile,

payment amount,

payment transaction frequency,

providing partners,

several failed attempts at authentication,

temporal information including time, and/or date, and/or day of the week,

log file of earlier transactions,

black list of partners that are blocked for transaction with a certain money account,

white list of partners that are authorized for a transaction with a certain money account,

grey list of suspect partners,

number of transactions with each money account during a predetermined period, and

profile of the partner, wherein

said partners are bound to several money accounts of several payment service providers and wherein parameters from several payment service providers are used to detect possible frauds, and wherein

said partners are each bound to several money accounts and further comprising the steps of determining the pair of money accounts that is used for a particular payment transaction automatically by said payment platform.

2. The method of claim 1, wherein all payment services to which a partner is bound are blocked as soon as a fraud or fraud attempt of the partner has been detected.

3. Fraud detection system to detect possible frauds in payment transactions between two partners, payment data for the payment transaction being transmitted over a mobile radio network, the payment transaction occurring over a payment service provider external to the mobile radio network, said system comprising a fraud detection module for combining mobile radio network internal multivalued parameters with multivalued parameters of the payment service provider sent to the fraud detection system to detect possible frauds, wherein said multivalued parameters are not restricted to having only one of two values, wherein

said mobile radio network performs tests for detecting possible frauds before each payment transaction utilizing said internal multivalued parameters and said multivalued parameters sent by the payment service provider, and wherein

said mobile radio network internal multivalued parameters include at least one of the following parameters:

location of the first partner,

identity of the mobile radio network,

location of the second partner,

trajectory of the first partner,

trajectory of the second partner,

used combination of mobile device and identification module,

transmission channel that is used for the payment transaction,

mobile device use profile of the first partner,

mobile device use profile of the second partner,

manual and/or unusual choice of the used payment service, and

temporal information including time and/or date, and/or day of the week, and further wherein

said payment service provider multivalued parameters include at least one of the following parameters;

used payment service,

used money account,

balance on the used money account,

payment service use profile,

payment amount,

payment transaction frequency,

providing partners,

several failed attempts at authentication,

temporal information including time, and/or date, and/or day of the week,

log file of earlier transactions,

black list of partners that are blocked for transaction with a certain money account,

white list of partners that are authorized for a transaction with a certain money account,

grey list of suspect partners,

number of transactions with each money account during a predetermined period, and

profile of the partner, wherein

both transaction partners are each bound to several money accounts and wherein the pair of money accounts that is used for a certain payment transaction is determined automatically by said payment platform.

4. Fraud detection system according to claim 3, with a payment platform in the infrastructure of the mobile radio network, with which payment transactions can be performed.

5. Fraud detection system according to claim 3, that also takes into account parameters from third parties connected over the Internet.

6. Fraud detection system according to claim 3, comprising the step of using data mining methods to detect unusual behaviors of mobile users.

7. Fraud detection system according to claim 3 that is in a mobile device of one of said partners.

8. Fraud detection system according to claim 3, that is in the terminal of the providing partner.

9. A method for detecting a possible fraud in a payment transaction conducted over a mobile radio network that supports a plurality of payment service providers, said method comprising the steps of:

the mobile radio network receiving a request to make a payment from a user utilizing one of said payment service providers;

the mobile radio network sending information about said request to said one of said payment service providers;

the mobile radio network receiving at least one payment parameter sent from said one of said payment service providers, said at least one payment parameter being generated by said one of said payment service providers based on said information about said request provided to said one of said payment service providers, said payment parameter adapted for use in determining a probability of fraud;

the mobile radio network generating at least one network parameter in response to said request, said network parameter also for use in determining a probability of fraud;

preparing a score based on a combination of said at least one payment parameter and said at least one network parameter such that said score indicates a probability of fraud, wherein

said request is denied by the mobile radio network when said score shows a high probability for fraud but said request is permitted by the mobile radio network when said score indicates a low probability for fraud, wherein

said score indicates a probability of fraud of said request such that said score is adapted to indicate a high probability for fraud for situations where neither of said parameters, alone, would indicate a high probability for fraud, and wherein

said score is also adapted to indicate a low potential for fraud for situations where at least one of said parameters, alone, would indicate a high probability for fraud.

10. The method of claim 9, wherein said score is also based on at least one parameter provided by another one of said plurality of payment service providers generated based on said request or another request of the user.

11. A method for detecting a possible fraud in a payment transaction conducted over a mobile radio network that supports a plurality of payment service providers, said method comprising the steps of:

the mobile radio network receiving a request to make a payment from a user utilizing one of said payment service providers;

the mobile radio network sending information about said request to said one of said payment service providers;

the mobile radio network receiving a plurality of payment parameters sent from said one of said payment service providers, said payment parameters being generated by said one of said payment service providers based on said information about said request provided to said one of said payment service providers, said payment parameters for use in determining probabilities of fraud;

the mobile radio network generating a plurality of network parameters in response to said request, said network parameters also for use in determining a probability of fraud;

preparing at least two scores, each of said scores being based on different combinations of said payment parameters and said network parameters, such that each of said scores indicates a different probability of fraud; and

combining said scores to determine an overall probability of fraud, wherein

said request is denied by the mobile radio network when said score shows a high probability for fraud, wherein

said request is permitted when one or more of said scores indicate a high probability of fraud, but the combination of scores does not indicate a high probability of fraud.

12. A method for detecting a possible fraud in a payment transaction conducted over a mobile radio network that supports a plurality of payment service providers, said method comprising the steps of:

the mobile radio network receiving a request to make a payment from a user utilizing one of said payment service providers;

the mobile radio network sending information about said request to said one of said payment service providers;

the mobile radio network receiving a plurality of payment parameters sent from said one of said payment service providers, said payment parameters being generated by said one of said payment service providers based on said information about said request provided to said one of said payment service providers, said payment parameters for use in determining probabilities of fraud;

the mobile radio network generating a plurality of network parameters in response to said request, said network parameters also for use in determining a probability of fraud;

preparing at least two scores, each of said scores being based on different combinations of said payment parameters and said network parameters, such that each of said scores indicates a different probability of fraud;

combining said scores to determine an overall probability of fraud; and

preparing an additional score using at least one parameter based on current or previous payment transactions of the user with another one of said plurality of payment service providers, wherein

said combining utilizes said additional score, and wherein

said request is denied by the mobile radio network when said score shows a high probability for fraud.