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Risk assessment rule set application for fraud prevention

  • US 9,842,336 B2
  • Filed: 12/29/2014
  • Issued: 12/12/2017
  • Est. Priority Date: 05/07/2009
  • Status: Active Grant
First Claim
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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.

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