Risk assessment rule set application for fraud prevention
First Claim
1. A computer-implemented method for determining and for denying the authorization of fraudulent financial transactions, the method comprising:
- receiving, via a communication network, by one or more processors, a request to authorize a transaction between a merchant and an account holder on an account issued by an issuer, wherein the transaction includes associated transaction data;
generating, via the one or more processors, a data structure defining a hyper-rectangle enclosing a multi-dimensional space defined by a plurality of edges, said data structure including data fields storing data for each of the plurality of edges of the hyper-rectangle, said plurality of edges representing a plurality of variable values;
retrieving, via the one or more processors, a target optimization variable associated with a data set;
in response to the determination that a number of points within the hyper-rectangle is greater than a minimum support parameter, concurrently removing, via the one or more processors, a first plurality of the points proximal to the plurality of edges;
in response to the determination that the mean value of the target optimization variable is maximized, adding, via the one or more processors, a second set of data fields representing a second plurality of points proximal to the plurality of edges;
bounding, via the one or more processors, the hyper-rectangle within a minimum bounding box, wherein one or more authorization business rules define the minimum bounding box, wherein the minimum bounding box defines a subspace defined by only those dimensions involved in the removing and the adding;
determining, via the one or more processors, a plurality of fraud prevention boundary limits based on the determined minimum bounding box;
determining, via the one or more processors, whether the transaction is fraudulent based on the application of the plurality of fraud prevention boundary limits on the received transaction data; and
in response to the determination that the transaction is fraudulent, transmitting, via the one or more processors, via the communication network, a denial response to the request to authorize the transaction.
1 Assignment
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Accused Products
Abstract
Rules, applied to deny authorization of likely fraudulent transactions, are derived from a modified Patient Rule Induction Method algorithm that uses a target variable and a data set of past transactions each associated with a plurality of input variables and a hyper-rectangle enclosing a multi-dimensional space defined by a representation of the input variable values as points within the multi-dimensional space. While a count of the points within the hyper-rectangle is greater than a minimum support parameter, a first plurality of points proximal to edges of the hyper-rectangle are removed, where each such removing maximizes a mean value of the target variable, and then, while the mean value remains maximized, a second plurality of points proximal to the edges is added, where each adding maximizes or maintains the mean value. The hyper-rectangle is bounded within a minimum bounding box that defines the rules.
12 Citations
20 Claims
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1. A computer-implemented method for determining and for denying the authorization of fraudulent financial transactions, the method comprising:
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receiving, via a communication network, by one or more processors, a request to authorize a transaction between a merchant and an account holder on an account issued by an issuer, wherein the transaction includes associated transaction data; generating, via the one or more processors, a data structure defining a hyper-rectangle enclosing a multi-dimensional space defined by a plurality of edges, said data structure including data fields storing data for each of the plurality of edges of the hyper-rectangle, said plurality of edges representing a plurality of variable values; retrieving, via the one or more processors, a target optimization variable associated with a data set; in response to the determination that a number of points within the hyper-rectangle is greater than a minimum support parameter, concurrently removing, via the one or more processors, a first plurality of the points proximal to the plurality of edges; in response to the determination that the mean value of the target optimization variable is maximized, adding, via the one or more processors, a second set of data fields representing a second plurality of points proximal to the plurality of edges; bounding, via the one or more processors, the hyper-rectangle within a minimum bounding box, wherein one or more authorization business rules define the minimum bounding box, wherein the minimum bounding box defines a subspace defined by only those dimensions involved in the removing and the adding; determining, via the one or more processors, a plurality of fraud prevention boundary limits based on the determined minimum bounding box; determining, via the one or more processors, whether the transaction is fraudulent based on the application of the plurality of fraud prevention boundary limits on the received transaction data; and in response to the determination that the transaction is fraudulent, transmitting, via the one or more processors, via the communication network, a denial response to the request to authorize the transaction. - 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 computer-readable medium having instructions stored thereon and executable by one or more processors to perform a method for determining and for denying the authorization of fraudulent financial transactions, the method comprising:
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receiving, via a communication network, by the one or more processors, a request to authorize a transaction between a merchant and an account holder on an account issued by an issuer, wherein the transaction includes associated transaction data; generating, via one or more processors, a data structure defining a hyper-rectangle enclosing a multi-dimensional space defined by a plurality of edges, said data structure including data fields storing data for each of the plurality of edges of the hyper-rectangle, said plurality of edges representing a plurality of variable values; retrieving, via the one or more processors, a target optimization variable associated with a data set; in response to the determination that a number of points within the hyper-rectangle is greater than a minimum support parameter, concurrently removing, via the one or more processors, a first plurality of the points proximal to the plurality of edges; in response to the determination that the mean value of the target optimization variable is maximized, adding, via the one or more processors, a second set of data fields representing a second plurality of points proximal to the plurality of edges; bounding, via the one or more processors, the hyper-rectangle within a minimum bounding box; determining, via the one or more processors, a plurality of fraud prevention boundary limits based on the determined minimum bounding box; determining, via the one or more processors, whether the transaction is fraudulent based on the application of the plurality of fraud prevention boundary limits on the received transaction data; and in response to the determination that the transaction is fraudulent, transmitting, via the one or more processors, via the communication network, a denial response to the request to authorize the transaction.
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19. A system for determining and for denying the authorization of fraudulent financial transactions, the system comprising:
a transaction handler that includes one or more processors, the transaction handler configured to; receive, via a communication network, a request to authorize a transaction between a merchant and an account holder on an account issued by an issuer, wherein the transaction includes associated transaction data; generate, via one or more processors, a data structure defining a hyper-rectangle enclosing a multi-dimensional space defined by a plurality of edges, said data structure including data fields storing data for each of the plurality of edges of the hyper-rectangle, said plurality of edges representing a plurality of variable values; retrieve, via the one or more processors, a target optimization variable associated with a data set; in response to the determination that a number of points within the hyper-rectangle is greater than a minimum support parameter, remove, via the one or more processors, a first plurality of the points proximal to the plurality of edges; in response to the determination that the mean value of the target optimization variable is maximized, add, via the one or more processors, a second plurality of points proximal to the plurality of edges; bound, via the one or more processors, the hyper-rectangle within a minimum bounding box; determine, via the one or more processors, a plurality of fraud prevention boundary limits based on the determined minimum bounding box; determine, via the one or more processors, whether the transaction is fraudulent based on the application of the plurality of fraud prevention boundary limits on the received transaction data; and in response to the determination that the transaction is fraudulent, transmit, via the communication network, a denial response to the request to authorize the transaction.
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20. A computer-readable medium having instructions stored thereon and executable by one or more processors to perform a method for determining and for denying the authorization of fraudulent financial transactions, the method comprising:
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receiving, via a communication network, by the one or more processors, a request to authorize a transaction between a merchant and an account holder on an account issued by an issuer, wherein the transaction includes associated transaction data; generating, via one or more processors, a data structure defining a hyper-rectangle enclosing a multi-dimensional space defined by a plurality of edges, said data structure including data fields storing data for each of the plurality of edges of the hyper-rectangle, said plurality of edges representing a plurality of variable values; retrieving, via the one or more processors, a target optimization variable associated with a data set; in response to the determination that a number of points within the hyper-rectangle is greater than a minimum support parameter, concurrently removing, via the one or more processors, a first plurality of the points proximal to the plurality of edges; generating, via the one or more processors, additional hyper-rectangles based on a secondary data structure in response to the first plurality of the points proximal to the plurality of edges, said secondary data structure including data fields storing data for each edge of the additional hyper-rectangles as each of the first plurality of the points proximal to the plurality of edges of the hyper-rectangle; in response to the determination that the mean value of the target optimization variable is maximized, adding, via the one or more processors, a second set of data fields representing a second plurality of points proximal to the plurality of edges; bounding, via the one or more processors, the hyper-rectangle within a minimum bounding box, wherein one or more authorization business rules define the minimum bounding box, wherein the minimum bounding box defines a subspace defined by only those dimensions involved in the removing and the adding; determining, via the one or more processors, a plurality of fraud prevention boundary limits based on the determined minimum bounding box; determining, via the one or more processors, whether the transaction is fraudulent based on the application of the plurality of fraud prevention boundary limits on the received transaction data; and in response to the determination that the transaction is fraudulent, transmitting, via the one or more processors, via the communication network, a denial response to the request to authorize the transaction.
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Specification