REDUCED FRAUD CUSTOMER IMPACT THROUGH PURCHASE PROPENSITY
First Claim
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1. A method comprising:
- computing a probability estimate of spending by a consumer in a merchant transaction category based on historical transaction data and consumer profile data;
generating a propensity score for the merchant transaction category based on the probability estimates of spending by the consumer, the propensity score representing a propensity for the consumer to conduct a merchant transaction in a set of spending categories;
combining the propensity score in a fraud model operating in a real-time transaction stream, the fraud model generating a fraud score; and
adjusting the fraud score in accordance with the propensity score, the fraud score representing a relative likelihood that the merchant transaction by the consumer is fraudulent.
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Abstract
A method, system and computer program product for reduced fraud customer impact through purchase propensity is disclosed. A probability estimate of spending by a consumer in a merchant transaction category is computed based on historical transaction data and consumer profile data, and a propensity score for the merchant transaction is generated. The propensity score represents a propensity for the consumer to conduct the merchant transaction. The propensity score is combined in a fraud model operating in a real-time transaction stream. The fraud score can be adjusted in accordance with the propensity score.
51 Citations
23 Claims
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1. A method comprising:
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computing a probability estimate of spending by a consumer in a merchant transaction category based on historical transaction data and consumer profile data; generating a propensity score for the merchant transaction category based on the probability estimates of spending by the consumer, the propensity score representing a propensity for the consumer to conduct a merchant transaction in a set of spending categories; combining the propensity score in a fraud model operating in a real-time transaction stream, the fraud model generating a fraud score; and adjusting the fraud score in accordance with the propensity score, the fraud score representing a relative likelihood that the merchant transaction by the consumer is fraudulent. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9)
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10. A computer program product comprising a machine-readable medium storing instructions that, when executed by at least one programmable processor, cause the at least one programmable processor to perform operations comprising:
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computing a probability estimate of spending by a consumer in a merchant transaction category according to merchant transaction data and consumer profile data; generating a propensity score for a merchant transaction in the merchant transaction category based on the probability estimate of spending by the consumer, the propensity score representing a propensity for the consumer to conduct the merchant transaction; combining the propensity score in a fraud model operating in a real-time transaction stream, the fraud model generating a fraud score; and adjusting the fraud score in accordance with the propensity score, the fraud score representing a relative likelihood that the merchant transaction by the consumer is fraudulent. - View Dependent Claims (11, 12, 13, 14, 15, 16)
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17. A system comprising:
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at least one programmable processor; and a machine-readable medium storing instructions that, when executed by the at least one processor, cause the at least one programmable processor to perform operations comprising; compute a probability estimate of spending by a consumer in a merchant transaction category according to merchant transaction data and consumer profile data; generate a propensity score for a merchant transaction in the merchant transaction category based on the probability estimate of spending by the consumer, the propensity score representing a propensity for the consumer to conduct the merchant transaction; combine the propensity in a fraud model operating in a real-time transaction stream, the fraud model generating a fraud score; and adjust the fraud score in accordance with the propensity score, the fraud score representing a relative likelihood that the merchant transaction by the consumer is fraudulent. - View Dependent Claims (18, 19, 20, 21, 22, 23)
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Specification