Method and system for detecting fraud
First Claim
1. A computer-implemented method executed by a server, the method comprising:
- receiving, by the server, payment information from a buyer of a product and the payment information includes a buyer email address for the buyer;
receiving, by the server, sale information pertaining to a sale of the product from a seller, the sale information includes a seller email address for the seller;
determining, by the server that a financial institution of the buyer has requested additional information before the sale is complete, the financial institution provides a payment for the sale from a buyer account at the financial institution;
issuing, by the server, email messages to the buyer and the seller using the buyer email address and the seller email address requesting clarifying information to clarify a request of the financial institution;
issuing, by the server, queries using the payment information and the sale information to check blacklists with external credit bureaus and to ensure that no fraud is present in addition to checking other databases with a payment facilitator system, and assuring that the an account of the buyer has not been used with the seller more than a predetermined amount of times within a predetermined time period to ensure that no fraud is present; and
obtaining, by the server, approval from the financial institution to take the payment from the account of the buyer at the financial institution and credit the account of the seller at another financial institution once the financial institution of the buyer is satisfied with the clarifying information, and the financial institution of the buyer automatically interacts with the buyer or seller to confirm a transaction and ensure no fraud is present.
1 Assignment
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Accused Products
Abstract
A system and method for detecting fraud when facilitating a payment transaction over a global wide area network. The method comprises receiving a sale information, receiving a payment information from a buyer, and analyzing a transaction information for fraud. If the analyzing indicates fraud, an enhanced transaction information is communicated to a human for fraud analysis. In one embodiment, the method comprises performing rule-based analyses to determine whether the transaction appears to be fraudulent. Rule-based analyses may include suspect data rules and velocity rules. Velocity rules generally determine whether there has been excessive activity that may lead to a conclusion that the transaction may be fraudulent. Suspect data rules are used to determine whether the billing, shipping, selling addresses, telephone numbers, and account numbers, and other data are in a syntactically correct format and whether they exist. In one embodiment, the method further comprises performing simple screening of the transaction information. In one embodiment, the method further comprises seeking approval from a third party such as a financial institution based on the payment information. The method may be implemented as part of a system that includes personal computers, server computers, and other personal computing devices, some of which may communicate over the Internet, and others which may communicate via dedicated communication lines.
71 Citations
20 Claims
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1. A computer-implemented method executed by a server, the method comprising:
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receiving, by the server, payment information from a buyer of a product and the payment information includes a buyer email address for the buyer; receiving, by the server, sale information pertaining to a sale of the product from a seller, the sale information includes a seller email address for the seller; determining, by the server that a financial institution of the buyer has requested additional information before the sale is complete, the financial institution provides a payment for the sale from a buyer account at the financial institution; issuing, by the server, email messages to the buyer and the seller using the buyer email address and the seller email address requesting clarifying information to clarify a request of the financial institution; issuing, by the server, queries using the payment information and the sale information to check blacklists with external credit bureaus and to ensure that no fraud is present in addition to checking other databases with a payment facilitator system, and assuring that the an account of the buyer has not been used with the seller more than a predetermined amount of times within a predetermined time period to ensure that no fraud is present; and obtaining, by the server, approval from the financial institution to take the payment from the account of the buyer at the financial institution and credit the account of the seller at another financial institution once the financial institution of the buyer is satisfied with the clarifying information, and the financial institution of the buyer automatically interacts with the buyer or seller to confirm a transaction and ensure no fraud is present. - View Dependent Claims (2, 3, 4, 5, 6, 7)
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8. A computer-readable medium having instructions stored thereon
and adapted to be executed by a server machine of a network, comprising: -
acting as an intermediary between a buyer financial institution and a seller financial institution during an online sale on behalf of a buyer and a seller; analyzing sale and payment information to determine whether the online sale is a fraudulent transaction and instructing the buyer financial institution and the seller financial institution to automatically engage the buyer and/or seller to resolve whether fraud is present when fraud is suspected from the analysis and fraud is suspected when queries using the payment information that are directed to external credit bureaus reveal details from the payment information on existing blacklists maintained by the external credit bureaus in addition to checking other databases with a payment facilitator system, and wherein fraud is suspected when a buyer Internet Protocol (IP) address or a seller IP address has been involved in more than a predetermined number of transactions in a predetermined number of last transactions; debiting a buyer account at the buyer financial institution when the sale is determined to be legitimate; and crediting a seller account at the seller financial institution when the sale is determined to be legitimate. - View Dependent Claims (9, 10, 11, 12, 13, 14)
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15. A system, comprising:
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a server; and a payment facilitator implemented in a computer-readable medium and to execute on the server; wherein the payment facilitator is configured to act as an intermediary between a buyer having a buyer financial institution and a seller having a seller institution for an online sale of a product or service offered over the Internet, and the payment facilitator performs an independent fraud analysis of the online sale that is independent of the buyer financial institution and the seller institution, at least a portion of the independent fraud analysis includes issuing queries to one or more external credit bureaus utilizing payment and sale information to detect whether an entry with details from the payment and sale information exists on blacklists maintained by the external credit bureaus in addition to checking other databases of the payment facilitator, and the payment facilitator is further configured to iteratively and automatically interact with the buyer and the seller via email communications while performing the fraud analysis and acting as the intermediary to ensure no fraud is present, and wherein fraud is determined to be present when an buyer Internet Protocol (IP) address is detected as being involved with more than a predetermined dollar amount of transactions within a predetermined amount of time. - View Dependent Claims (16, 17, 18, 19, 20)
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Specification