System and method for credit scoring using an identity network connectivity

• US 8,386,377 B1
• Filed: 04/22/2008
• Issued: 02/26/2013
• Est. Priority Date: 05/12/2003
• Status: Active Grant

• Current Assignee: LexisNexis Risk Solutions, Inc. (RELX PLC)
• Original Assignee: ID Analytics, Inc. (Gen Digital Inc.)
• Inventors: Xie, Jianjun, Lin, Yinghua, Wu, Guowei, Coggeshall, Stephen, Xiong, Shanji, Lu, Quan
• Primary Examiner(s): Trammell, James
• Assistant Examiner(s): Malhotra, Sanjeev
• Application Number:
  US12/107,672
• Time in Patent Office: 1,771 Days
• Field of Search: 705/38, 706/45, 707/6, 707/706, 455/550.1
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• 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

Abstract

A technique is provided for determining credit ratings without the need for traditional credit bureau data. In at least one embodiment of the invention, a method comprises the steps of providing a network of linked identity records, each identity record comprising identity related information; receiving an identity record comprising identity related information of the entity; linking the received identity record with at least one of the identity records in the network of linked identity records, quantifying a plurality of linked identity records related to the entity; and generating a credit rating for the entity based on the quantified identity records. Application of the invention is particularly useful for individuals with less than a few years credit behavior recorded on a credit bureau, such as immigrants or young people with limited traditional historical information (“thin file”) and individuals with no traditional historical information (“no hit”).

Claims

1. A method for generating a credit rating for an entity comprising the steps of:

providing a network of linked identity records, each identity record comprising identity related information;

receiving an identity record comprising identity related information;

linking the received identity record with at least one of the identity records in the network of linked identity records to form a graphical network of related identity records;

detecting anomalies in the graphical network of related identity records;

generating a credit rating for the entity based on the detected anomalies in the graphical network of related identity records using a processor, and

regenerating the credit rating for the entity, wherein the step of regenerating further comprises the steps of;

receiving a new identity record comprising identity related information related to the entity, from a third-party source;

linking the new identity record with the network of linked identity records to form a second graphical network;

detecting anomalies in the second graphical network of related identity records; and

regenerating the credit rating for the entity based on the detected anomalies in the second graphical network of identity records;

wherein a link between a first identity record and a second identity record is created when a characteristic of the identity related information of the first identity record is similar to a characteristic of the identity related information of the second identity record, and the entity has no credit history with a standard credit bureau.

2. The method of claim 1, wherein providing a network of linked identity records further comprises the steps of:

receiving a plurality of identity records from one or more third-party sources; and

linking the plurality of received identity records based on characteristics of their identity related information.

3. The method of claim 1, wherein the entity comprises a plurality of individual persons.

4. The method of claim 1, wherein the entity has a limited credit history with a standard credit bureau.

5. The method of claim 1, wherein the credit rating of the entity is also based on a product or service.

6. The method of claim 1, further comprising the step of making a business decision regarding the entity based on the generated credit rating.

7. The method of claim 1, wherein the network of linked identity records comprises a fraud database comprising identity related information, a portion of which is believed to be fraudulent.

8. A non-transitory computer-readable medium having computer-executable instructions for performing a method for generating a credit rating for an entity, the method comprising the steps of:

providing a network of linked identity records, each identity record comprising identity related information;

receiving an identity record comprising identity related information of the entity;

linking the received identity record with at least one of the identity records in the network of linked identity records to form a graphical network of related identity records;

detecting anomalies in the graphical network of related identity records; and

generating a credit rating for the entity based on the detected anomalies in the graphical network of related identity records, and

regenerating the credit rating for the entity, wherein the step of regenerating further comprises the steps of;

receiving a new identity record comprising identity related information related to the entity, from a third-party source;

linking the new identity record with the network of linked identity records to form a second graphical network;

detecting anomalies in the second graphical network of related identity records; and

regenerating the credit rating for the entity based on the detected anomalies in the second graphical network of identity records;

wherein a link between a first identity record and a second identity record is created when a characteristic of the identity related information of the first identity record is similar to a characteristic of the identity related information of the second identity record, and the entity has no credit history with a standard credit bureau.

9. The non-transitory computer-readable medium of claim 8, wherein providing a network of linked identity records further comprises the steps of:

receiving a plurality of identity records from one or more third-party sources; and

linking the plurality of received identity records based on characteristics of their identity related information.

10. The non-transitory computer-readable medium of claim 8, wherein the entity comprises a plurality of individual persons.

11. The non-transitory computer-readable medium of claim 8, wherein the entity has a limited credit history with a standard credit bureau.

12. The non-transitory computer-readable medium of claim 8, wherein the credit rating of the entity is also based on the product or service.

13. The non-transitory computer-readable medium of claim 8, wherein the method further comprises making a business decision regarding the entity based on the generated credit rating.

14. The non-transitory computer-readable medium of claim 8, wherein the network of linked identity records comprises a fraud database comprising identity related information, a portion of which is believed to be fraudulent.