Fraud risk advisor

• US 7,438,226 B2
• Filed: 08/24/2006
• Issued: 10/21/2008
• Est. Priority Date: 09/17/2004
• Status: Active Grant

• Current Assignee: Digital Envoy, Inc. (Landmark Media Enterprises LLC)
• Original Assignee: Digital Envoy, Inc. (Landmark Media Enterprises LLC)
• Inventors: Helsper, David, Maicon, Dennis
• Primary Examiner(s): Frech; Karl D.
• Application Number:
  US11/509,234
• Publication Number:
  US 20060287902A1
• Time in Patent Office: 789 Days
• Field of Search: 235/382, 235/382.5, 235/375, 235/380, 235/487
• US Class Current: 235/382
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 50/265 Personal security, identity or safety

Abstract

A fraudulent business transaction application (FBTA) is provided for monitoring application based fraud. When a consumer supplies account access information in order to carry out on Internet business transaction, the FBTA uses an online fraud mitigation engine to detect phishing intrusions and identity theft. Methods are also provided for calculating travel velocity and transaction frequency, which are useful for determining a fraudulent transaction.

Claims

1. A method for determining if one or more online transactions are fraudulent, comprising the steps of:

a. computing a transaction frequency with which the one or more transactions are attempted or executed from an IP address within a predetermined period of time;

b. determining the host type associated with the IP address, wherein host type is one of network end point, network proxy, or network firewall;

c. executing a function to generate a risk score by performing, for each of the one or more transactions, the steps of;

i. comparing the transaction frequency to the host type and adjusting the risk score based on the comparison; and

ii. adjusting the risk score for a predetermined transaction frequency if the host type is a network end point;

d. determining if the one or more transactions are fraudulent by comparing the risk score to a threshold score.

2. A system comprising a processor for determining if one or more online transactions are fraudulent, wherein the processor is programmed to perform the steps of:

a. computing a transaction frequency with which the one or more transactions are attempted or executed from an IP address within a predetermined period of time;

b. determining the host type associated with the IP address, wherein host type is one of network end point, network proxy, or network firewall;

c. executing a function to generate a risk score by performing, for each of the one or more transactions, the steps of;

i. comparing the transaction frequency to the host type and adjusting the risk score based on the comparison; and

ii. adjusting the risk score for a predetermined transaction frequency if the host type is a network end point;

d. determining if the one or more transactions are fraudulent by comparing the risk score to a threshold score.

3. A computer-readable medium carrying a computer program product for determining if one or more online transactions are fraudulent, wherein the computer program product comprises instructions that, when executed, cause a processor to perform the steps of:

a. computing a transaction frequency with which the one or more transactions are attempted or executed from an IP address within a predetermined period of time;

b. determining the host type associated with the IP address, wherein host type is one of network end point, network proxy, or network firewall;

c. executing a function to generate a risk score by performing, for each of the one or more transactions, the steps of;

iii. comparing the transaction frequency to the host type and adjusting the risk score based on the comparison; and

iv. adjusting the risk score for a predetermined transaction frequency if the host type is a network end point;

d. determining if the one or more transactions are fraudulent by comparing the risk score to a threshold score.