WO2000025251A1 - Systeme et procede de detection de fraudes liees aux cartes d'achat - Google Patents

Systeme et procede de detection de fraudes liees aux cartes d'achat Download PDF

Info

Publication number
WO2000025251A1
WO2000025251A1 PCT/US1999/024836 US9924836W WO0025251A1 WO 2000025251 A1 WO2000025251 A1 WO 2000025251A1 US 9924836 W US9924836 W US 9924836W WO 0025251 A1 WO0025251 A1 WO 0025251A1
Authority
WO
WIPO (PCT)
Prior art keywords
fraud
contact event
event information
purchasing card
client
Prior art date
Application number
PCT/US1999/024836
Other languages
English (en)
Inventor
Julie A. Geschwender
Michele Murphy-Houser
Original Assignee
First Data Corporation
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by First Data Corporation filed Critical First Data Corporation
Publication of WO2000025251A1 publication Critical patent/WO2000025251A1/fr

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Classifications

    • G—PHYSICS
    • G07—CHECKING-DEVICES
    • G07F—COIN-FREED OR LIKE APPARATUS
    • G07F7/00—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
    • G07F7/08—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/04—Payment circuits
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/38—Payment protocols; Details thereof
    • G06Q20/40—Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
    • G06Q20/403—Solvency checks
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/38—Payment protocols; Details thereof
    • G06Q20/40—Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
    • G06Q20/403—Solvency checks
    • G06Q20/4037—Remote solvency checks

Definitions

  • This invention relates to a system and method for detecting and preventing purchasing card fraud during all phases of a purchasing card life cycle.
  • purchasing cards are defined as credit cards, debit cards, "Smart" cards (having IC chips), retail cards (such as gas cards), and the like.
  • the present invention provides a method and system for detecting purchasing card fraud during every aspect of a purchasing card life cycle.
  • a central fraud database is created for receiving known fraudulent or "high risk" personal information.
  • the personal information may include, the fraudulent name, fraudulent addresses, fraudulent phone numbers, fraudulent places of employment, criminal history, and other personal information for example.
  • the central fraud database receives information from a variety of sources including but not limited to proprietary databases, client fraud files, law enforcement, and USPS databases. After a contact event has a occurred the fraud database is scanned for a match between the contact event information and the contents of the fraud database. If a possible fraud match occurs the system sends a fraud alert to the client or user of the database.
  • the present invention has many advantages over the prior art for example the present invention has the capability to send fraud alerts in real time, "near" real time, or via batch to clients thus reducing or eliminating the damage caused by potential purchasing card fraud.
  • a method for detecting purchasing card fraud during all phases of a purchasing card life cycle.
  • the method includes obtaining contact event information from a client during a contact event, comparing the contact event information with information stored in a database, and sending a fraud alert to a client in real time, "near" real time, or via batch for communicating to the client that a potential fraud match has occurred.
  • the method allows for special handling of the contact event by the client or user of the database.
  • a system for detecting purchasing card fraud during all phases of a purchasing card life cycle has a computer database for receiving contact event information from a client, computer software in communication with the computer database for comparing the contact event information with information stored in the database, and a communication network for sending a fraud alert to a client in real time, "near" real time, or via batch for informing the client that a potential fraud match has occurred.
  • FIGURE 1 is a schematic representation of a purchasing card fraud detection system designed in accordance with the present invention
  • FIGURE 2 is a flow diagram of a preferred method of detecting purchasing card fraud in accordance with the present invention
  • FIGURE 3 is a flow diagram of a preferred fraud matching process
  • FIGURE 4 is a schematic representation of a preferred fraud database architecture.
  • the present invention provides a system and method for facilitating fraud prevention and detection for all contact events during a purchasing card life cycle.
  • Such contact events include 1) application processing; 2) card activation; 3) cardholder usage, including mail and telephone orders; and 4) maintenance events, such as name and address changes, PIN changes, plastic requests, and credit line increases.
  • the system of the present invention preferably includes a single, comprehensive risk database 10 for the detection of purchasing card fraud.
  • the risk database 10 may include information from various sources 12, as will be described below.
  • the risk database is preferably server-based and has connectivity, via a local area network 14 (LAN) or other network, to a mainframe 16.
  • the mainframe 16 is provided for on-line transactions involving the various contact events 18 described above.
  • Clients 20 are provided with connectivity to the risk database 10 for file transfer and general access, and are also provided connectivity to mainframe 16 (Graphical User Interface, dummy terminal or the like) for receipt of fraud alerts and queue information.
  • An optional, more limited database could be provided for non-contributors to the risk database.
  • a backup server is provided.
  • the system of the present invention possesses the technical functionality to pool data from multiple sources in multiple formats and to standardize reporting structure guidelines, enabling the risk database to function for many types of transactions or contact events 18.
  • the system provides the ability to query in real time, "near" real time, or via batch with on-line interfaces to the mainframe transactions.
  • limited client 20 resources are required for access.
  • a daily queue statistics report is developed at the client 20 level to identify all accounts that match the risk database 10, including the source of the data match.
  • reports are generated which track contributor statistics.
  • reporting is developed to track client statistics on a query basis, such as by the number of record transactions queried against the risk database 10, or by the number of records with a data match.
  • consortium fraud database 10 Possible sources for the consortium fraud database 10 include client databases, credit card issuer databases, credit bureau databases, research and investigation fraud files, ANI risk databases, the U.S. Postal Service NRI database, Account Takeover modeling/scoring, the Social Security Administration, the Department of Motor Vehicles, Western Union, Telecheck, the American Business List, law enforcement, court and public information records, phone directories, and direct mail surveys.
  • the available data includes, but is not limited to,
  • the proposed data element structure within the risk database preferably includes at least the following:
  • Fraudulent or potentially fraudulent home and business addresses, including P.O. Box, city, state, and zip code.
  • the risk database would act as a central repository for fraud data to be queried against by lenders and adjacent market users.
  • Potential primary users or clients include bank card issuers, non-bank card issuers, potential card issuers, oil card issuers, merchants, and retailers.
  • Possible secondary users include phone companies, DDA Account banks, and utility companies, among others.
  • the method of detecting potential purchasing card fraud of the present invention is outlined in the flow diagram of FIG. 2.
  • the method includes obtaining contact event information at the mainframe 16, as represented by block 50. Comparing the contact event 18 information to fraud information stored in the risk database 10, as represented by block 52. If a match is found between the contact event information and the fraud information, the method further includes issuing an on-line alert to the client and queuing the information for manual review by the particular client, as represented by block 54. If a match does not occur client 20 is notified as such and communication with risk database 10 is concluded, as represented by block 56.
  • a fraud match may be scored, as represented by block 58 and as will be explained below.
  • a score then communication with the database is concluded, as represented by block 60. However, if a client has elected to receive a match score, a scorecard is generated and sent to the client 20, as represented by block 62 and then communication with risk database is terminated at block 64.
  • contact event 18 transactions are preferably structured to create automatic queries which compare account record data elements against the fraud information stored in the risk database. If a match is found between the account data and the fraud data, then an alert message is generated by the system in real time, "near" real time, or via batch to the queue. In addition, the account record is sent to an on-line queue to be monitored and/or manually worked by the client. Upon entry to the queue, the contact event transaction is suspended or placed on hold until manual follow-up is completed. The contact event information may for example be purged from the database.
  • An additional feature of the present invention is to offer clients 18 the option of having matched fraud data records "scored" to assist in the decisioning/actioning processes when a record is queued.
  • a generic suite of scorecards is provided, while also allowing client-defined scorecards to be developed and implemented.
  • a scorecard is provided which predicts the likelihood of a fraudulent takeover of an existing, active, or inactive cardholder account.
  • PIN changes, plastic requests, credit line increases and changes to the account record.
  • the components of the invention are:
  • selected non-monetary transactions may be structured to create queries which compare account record data elements against the Consortium Risk Database 10 of the invention.
  • an account entry transaction 80 application processing, card activation, mail/phone order, address change, and the like
  • an alert message 84 would be generated by the system real time, "near" real time, or via batch.
  • the account record may be sent to an on-line queue 86 to be monitored and/or manually worked by the client.
  • the non- monetary transactions would be suspended or placed on hold until manual follow up is completed.
  • the accounts may be built on the system, however, plastic generation would be suspended.
  • Information residing within the queue would include the account record information, the reason for the alert (i.e. , potential fraudulent name, address, SSN, or phone number), and the contributing source of the matched data. This process will help to reduce responsibility /liability for data integrity.
  • clients will be provided the option of having matched fraud data records "scored" to assist in the decisioning/actioning processes when a record is queued, as represented by block 88.
  • a generic suite of scorecards 90 may be implemented as well as client- defined scorecards 92.
  • Usage incentives may also be provided for "global" contributors.
  • An example of a usage incentive may be reduced fees for accessing the fraud database.
  • Other incentives may include partial to full access to information contained in the fraud database.
  • a non-contributor to the consortium may be offered access to information that the database manager may have purchased or provided in a non- consortium database 100. Otherwise non-contributors may be restricted from information provided by "global" contributors to the Risk Consortium Database.
  • a consortium data warehouse contains data contributed from various business sources 110 including, but not limited to:
  • the data element structure 200 may include: • Name (Primary and Secondary and additional): First, Last,
  • the system and method of the present invention provide a single source of uniform data from various contributor business sources 210, increase the effectiveness of fraud detection efforts, allow clients 212 to reduce current manual processes for fraud identification and actioning, and allow pooling of data across the client base to improve the identification of repeat offenders.

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  • Business, Economics & Management (AREA)
  • Engineering & Computer Science (AREA)
  • Accounting & Taxation (AREA)
  • Physics & Mathematics (AREA)
  • General Physics & Mathematics (AREA)
  • Strategic Management (AREA)
  • General Business, Economics & Management (AREA)
  • Theoretical Computer Science (AREA)
  • Computer Security & Cryptography (AREA)
  • Finance (AREA)
  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)

Abstract

L'invention concerne un procédé et un système de détection de fraudes liées aux cartes d'achat au cours des différents aspects du cycle de vie d'une carte d'achat. Une base de données centrale (10) relative aux fraudes, destinée à recevoir des informations potentiellement frauduleuses ou présentant un « risque élevé » de fraude, est mise sur pied. La base de données centrale (10) reçoit des informations provenant de diverses sources (12) et de sources de contact (18). Après réception d'un événement de contact, on procède au balayage de la base de données relative aux fraudes afin d'obtenir une correspondance entre les informations liées à l'événement de contact et le contenu de la base de données relative aux fraudes (10). On transmet alors au client (20) un message d'alarme contenant une carte de pointage. En réponse à l'événement de contact, on propose au client (20) différentes options, par exemple, la suspension d'émissions de cartes.
PCT/US1999/024836 1998-10-26 1999-10-25 Systeme et procede de detection de fraudes liees aux cartes d'achat WO2000025251A1 (fr)

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
US10561198P 1998-10-26 1998-10-26
US60/105,611 1998-10-26

Publications (1)

Publication Number Publication Date
WO2000025251A1 true WO2000025251A1 (fr) 2000-05-04

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Family Applications (1)

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Cited By (7)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
SG104342A1 (en) * 2002-07-17 2004-06-21 Kam Fu Wong A security system
EP1464018A1 (fr) * 2001-10-29 2004-10-06 Equifax, Inc. Systeme et procede facilitant les echanges reciproques d'informations financieres concernant les petites et moyennes entreprises
ES2338403A1 (es) * 2009-06-02 2010-05-06 Micro Codigos, S.L. Sistema de comunicacion con tarjetas inteligentes provistas de funciones de almacenamiento y/o procesado y lector de tarjetas adaptado para dicho sistema.
US7747521B2 (en) 2006-02-22 2010-06-29 First American Corelogic, Inc. System and method for monitoring events associated with a person or property
US8015037B2 (en) 2008-07-01 2011-09-06 Corelogic Information Solutions, Inc. System and method for tracking, monitoring and reporting extinguishment of a title insurance policy
US8224745B2 (en) 2006-06-13 2012-07-17 Corelogic Tax Services, Llc Automatic delinquency item processing with customization for lenders
EP3955141A1 (fr) * 2020-07-19 2022-02-16 Synamedia Limited Systèmes de validation et de résolution adaptatifs et procédés de fraude liée aux justificatifs

Citations (2)

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Publication number Priority date Publication date Assignee Title
US5239462A (en) * 1992-02-25 1993-08-24 Creative Solutions Groups, Inc. Method and apparatus for automatically determining the approval status of a potential borrower
US5774882A (en) * 1992-03-12 1998-06-30 Keen; Regina D. Credit approval system

Patent Citations (2)

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US5239462A (en) * 1992-02-25 1993-08-24 Creative Solutions Groups, Inc. Method and apparatus for automatically determining the approval status of a potential borrower
US5774882A (en) * 1992-03-12 1998-06-30 Keen; Regina D. Credit approval system

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Cited By (13)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
EP1464018A1 (fr) * 2001-10-29 2004-10-06 Equifax, Inc. Systeme et procede facilitant les echanges reciproques d'informations financieres concernant les petites et moyennes entreprises
US7536346B2 (en) 2001-10-29 2009-05-19 Equifax, Inc. System and method for facilitating reciprocative small business financial information exchanges
SG104342A1 (en) * 2002-07-17 2004-06-21 Kam Fu Wong A security system
US7747521B2 (en) 2006-02-22 2010-06-29 First American Corelogic, Inc. System and method for monitoring events associated with a person or property
US7835986B2 (en) 2006-02-22 2010-11-16 Corelogic Information Solutions, Inc. System and method for monitoring events associated with a person or property
US8224745B2 (en) 2006-06-13 2012-07-17 Corelogic Tax Services, Llc Automatic delinquency item processing with customization for lenders
US8548831B2 (en) * 2008-07-01 2013-10-01 Corelogic Solutions, Llc System and method for tracking, monitoring and reporting extinguishment of a title insurance policy
US8015037B2 (en) 2008-07-01 2011-09-06 Corelogic Information Solutions, Inc. System and method for tracking, monitoring and reporting extinguishment of a title insurance policy
US20110282699A1 (en) * 2008-07-01 2011-11-17 Corelogic Information Solutions, Inc. System and Method for Tracking, Monitoring and Reporting Extinguishment of a Title Insurance Policy
ES2338403A1 (es) * 2009-06-02 2010-05-06 Micro Codigos, S.L. Sistema de comunicacion con tarjetas inteligentes provistas de funciones de almacenamiento y/o procesado y lector de tarjetas adaptado para dicho sistema.
WO2010139830A1 (fr) * 2009-06-02 2010-12-09 Micro Códigos, S. L. Système de communication à cartes à puces intelligentes dotées de fonctions de stockage et/ou de traitement et lecteur de cartes adapté audit système
EP3955141A1 (fr) * 2020-07-19 2022-02-16 Synamedia Limited Systèmes de validation et de résolution adaptatifs et procédés de fraude liée aux justificatifs
US11704679B2 (en) 2020-07-19 2023-07-18 Synamedia Limited Adaptive validation and remediation systems and methods for credential fraud

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