Method and system for detecting fraud
First Claim
1. A method for detecting fraud by a payment facilitator when facilitating a payment transaction over a global wide area network, the method implemented in a computer-readable storage medium and executed by a server, the method comprising:
- receiving, by the payment facilitator via a web site interface associated with the payment facilitator, sale information pertaining to a purchase of a product from a seller, wherein the sale information includes an email address for the seller;
receiving, by the payment facilitator via the web site interface, payment information from a buyer, where the payment information includes an email address for the buyer, and wherein the payment information is received from the buyer in response to an email generated invoice sent to the email address of the buyer or sent in response to an email generated notification of a location that the buyer can acquire the email generated invoice where the location is sent to the email address of the buyer;
performing, by the payment facilitator, automated analysis of transaction information including the sale information and the payment information to detect whether the transaction information indicates fraud, and wherein the payment facilitator executes a software program to process at least some information associated with historical information, in order to determine whether fraud is present;
if the automated analysis does not detect fraud, the payment facilitator sends information via email to the email address of the seller instructing the seller to send the product to the buyer, credits an account of the seller for the purchase in response to an indication that the buyer received the product, and the payment facilitator directly contacts a financial institution associated with the buyer, via a dedicated line, and debits another account associated with the buyer at that financial institution;
when the financial institution requests additional information from the payment facilitator before determining whether fraud exists, the payment facilitator automatically issues email messages to the buyer or the seller requesting information to clarify requests of the financial institution and again attempts to obtain approval from the financial institution with the clarifying information; and
if the automated analysis detects fraud, the payment facilitator causes an enhanced transaction information to be communicated to a human for manual fraud analysis.
2 Assignments
0 Petitions
Accused Products
Abstract
A system and method for detecting fraud when facilitating a payment transaction over a global wide area network. The method comprises receiving a sale information, receiving a payment information from a buyer, and analyzing a transaction information for fraud. If the analyzing indicates fraud, an enhanced transaction information is communicated to a human for fraud analysis. In one embodiment, the method comprises performing rule-based analyses to determine whether the transaction appears to be fraudulent. Rule-based analyses may include suspect data rules and velocity rules. Velocity rules generally determine whether there has been excessive activity that may lead to a conclusion that the transaction may be fraudulent. Suspect data rules are used to determine whether the billing, shipping, selling addresses, telephone numbers, and account numbers, and other data are in a syntactically correct format and whether they exist. In one embodiment, the method further comprises performing simple screening of the transaction information. In one embodiment, the method further comprises seeking approval from a third party such as a financial institution based on the payment information. The method may be implemented as part of a system that includes personal computers, server computers, and other personal computing devices, some of which may communicate over the Internet, and others which may communicate via dedicated communication lines.
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Citations
38 Claims
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1. A method for detecting fraud by a payment facilitator when facilitating a payment transaction over a global wide area network, the method implemented in a computer-readable storage medium and executed by a server, the method comprising:
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receiving, by the payment facilitator via a web site interface associated with the payment facilitator, sale information pertaining to a purchase of a product from a seller, wherein the sale information includes an email address for the seller; receiving, by the payment facilitator via the web site interface, payment information from a buyer, where the payment information includes an email address for the buyer, and wherein the payment information is received from the buyer in response to an email generated invoice sent to the email address of the buyer or sent in response to an email generated notification of a location that the buyer can acquire the email generated invoice where the location is sent to the email address of the buyer; performing, by the payment facilitator, automated analysis of transaction information including the sale information and the payment information to detect whether the transaction information indicates fraud, and wherein the payment facilitator executes a software program to process at least some information associated with historical information, in order to determine whether fraud is present; if the automated analysis does not detect fraud, the payment facilitator sends information via email to the email address of the seller instructing the seller to send the product to the buyer, credits an account of the seller for the purchase in response to an indication that the buyer received the product, and the payment facilitator directly contacts a financial institution associated with the buyer, via a dedicated line, and debits another account associated with the buyer at that financial institution; when the financial institution requests additional information from the payment facilitator before determining whether fraud exists, the payment facilitator automatically issues email messages to the buyer or the seller requesting information to clarify requests of the financial institution and again attempts to obtain approval from the financial institution with the clarifying information; and if the automated analysis detects fraud, the payment facilitator causes an enhanced transaction information to be communicated to a human for manual fraud analysis. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17)
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18. A system comprising:
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a first computer supporting communications over a wide area network by a buyer, wherein the communications over the wide area network occur via a web site interface for a payment facilitator; a second computer supporting communications over the wide are network by a seller, wherein the communications over the wide area network occur via the web site interface for the payment facilitator; the payment facilitator computer supporting communications over the wide are network and executing software that facilitates a payment transaction between the buyer and the seller, wherein the facilitator computer is to receive payment information from the buyer and to analyze the payment transaction for fraud by applying a plurality of rules and incrementing a score for the payment transaction for each of the plurality of rules that is violated, if the score does not exceed a predefined threshold, instructs the seller via email to send a purchased product to the buyer, credits an account of the seller for the payment transaction in response to an email indication from the buyer that the buyer received the purchased product, and the payment facilitator directly contacts a financial institution associated with the buyer, via a dedicated line, and debits another account associated with the buyer at that financial institution and when the financial institution requests additional information from the payment facilitator before determining whether fraud exists the payment facilitator automatically issues email messages to the buyer or the seller requesting information to clarify requests of the financial institution and again attempts to obtain approval from the financial institution with the clarifying information before debiting the account of the buyer with the financial institution, and if the score exceeds a predefined threshold, communicates an information about the payment transaction to a human fraud investigator, and wherein a number of the rules are applied in response to information related to historical information that compliments the rules. - View Dependent Claims (19, 20, 21, 22, 23, 24, 25)
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26. A machine readable medium having stored thereon instructions which when executed by a processor cause the machine to perform a method for detecting fraud by a payment facilitator when facilitating a payment transaction over a global wide area network, the method comprising:
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receiving, via a web site interface of the payment facilitator, sale information pertaining to a purchase of a product from a seller, and wherein the sale information includes an email address for the seller; receiving, via the web site interface of the payment facilitator, payment information from a buyer, and wherein the payment information includes an email address for the buyer; performing, by the payment facilitator, automated analysis of transaction information including the sale information and the payment information to detect whether the transaction information indicates fraud, and wherein the payment facilitator acquires at least some information related to historical information, in order to determine if fraud is present; if the automated analysis does not detect fraud, the payment facilitator sends information via email instructing the seller to send the product to the buyer, credits an account of the seller for the purchase in response to an email indication that the buyer received the product, and the payment facilitator directly contacts a financial institution associated with the buyer, via a dedicated line, and debits another account associated with the buyer at that financial institution; when the financial institution requests additional information from the payment facilitator before determining whether fraud exists the payment facilitator automatically issues email messages to the buyer or the seller requesting information to clarify requests of the financial institution and again attempts to obtain approval from the financial institution with the clarifying information; and if the automated analysis detects fraud, the payment facilitator causes an enhanced transaction information to be communicated to a human for manual fraud analysis. - View Dependent Claims (27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38)
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Specification