WO2002037219A3 - Method and apparatus for evaluating fraud risk in an electronic commerce transaction - Google Patents

Method and apparatus for evaluating fraud risk in an electronic commerce transaction Download PDF

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Publication number
WO2002037219A3
WO2002037219A3 PCT/US2001/045372 US0145372W WO0237219A3 WO 2002037219 A3 WO2002037219 A3 WO 2002037219A3 US 0145372 W US0145372 W US 0145372W WO 0237219 A3 WO0237219 A3 WO 0237219A3
Authority
WO
WIPO (PCT)
Prior art keywords
risk
commerce transaction
transaction
fraud
fraud risk
Prior art date
Application number
PCT/US2001/045372
Other languages
French (fr)
Other versions
WO2002037219A2 (en
WO2002037219A9 (en
Inventor
Michael Lewis
Frank King
Thomas Arnold
William Wright
John Pettit
Original Assignee
Cybersource Corp
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
Priority claimed from US09/708,124 external-priority patent/US7403922B1/en
Application filed by Cybersource Corp filed Critical Cybersource Corp
Priority to EP01989824A priority Critical patent/EP1340178A4/en
Priority to AU2002228700A priority patent/AU2002228700A1/en
Priority to CA002426168A priority patent/CA2426168A1/en
Priority to JP2002539907A priority patent/JP2004524599A/en
Publication of WO2002037219A2 publication Critical patent/WO2002037219A2/en
Publication of WO2002037219A3 publication Critical patent/WO2002037219A3/en
Publication of WO2002037219A9 publication Critical patent/WO2002037219A9/en

Links

Classifications

    • 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
    • G06Q30/00—Commerce
    • G06Q30/02—Marketing; Price estimation or determination; Fundraising
    • 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
    • G06Q20/401—Transaction verification
    • G06Q20/4016—Transaction verification involving fraud or risk level assessment in transaction processing
    • 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
    • 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

Abstract

A method and system for evaluating fraud risk in an electronic commerce transaction between consumer and a merchant over a network is disclosed. An e-commerce transaction or electronic purchase order is received, the level of risk associated with each order is measured, and a risk score is returned (560). Data validation, highly predictive artificial intelligence pattern matching (520), network data aggregation and negative file checks are used to examine numerous factors to calculate fraud risk. Other analysis includes a comparative comparison of the current transaction against past known fraudulent transactions, and a search of a transaction history database to identify abnormal velocity patterns, name and address changes, and known defrauders. In one alternative, scoring algorithms are regularly refined through the use of a closed-loop risk modeling process that enables the service provided by the system to be fine-tuned to adapt to new or changing fraud patterns.
PCT/US2001/045372 2000-11-02 2001-10-31 Method and apparatus for evaluating fraud risk in an electronic commerce transaction WO2002037219A2 (en)

Priority Applications (4)

Application Number Priority Date Filing Date Title
EP01989824A EP1340178A4 (en) 2000-11-02 2001-10-31 Method and apparatus for evaluating fraud risk in an electronic commerce transaction
AU2002228700A AU2002228700A1 (en) 2000-11-02 2001-10-31 Method and apparatus for evaluating fraud risk in an electronic commerce transaction
CA002426168A CA2426168A1 (en) 2000-11-02 2001-10-31 Method and apparatus for evaluating fraud risk in an electronic commerce transaction
JP2002539907A JP2004524599A (en) 2000-11-02 2001-10-31 Method and apparatus for assessing fraudulent transaction risk in electronic commerce

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
US09/708,124 2000-11-02
US09/708,124 US7403922B1 (en) 1997-07-28 2000-11-02 Method and apparatus for evaluating fraud risk in an electronic commerce transaction

Publications (3)

Publication Number Publication Date
WO2002037219A2 WO2002037219A2 (en) 2002-05-10
WO2002037219A3 true WO2002037219A3 (en) 2003-02-13
WO2002037219A9 WO2002037219A9 (en) 2004-05-13

Family

ID=24844451

Family Applications (1)

Application Number Title Priority Date Filing Date
PCT/US2001/045372 WO2002037219A2 (en) 2000-11-02 2001-10-31 Method and apparatus for evaluating fraud risk in an electronic commerce transaction

Country Status (5)

Country Link
EP (1) EP1340178A4 (en)
JP (2) JP2004524599A (en)
AU (1) AU2002228700A1 (en)
CA (1) CA2426168A1 (en)
WO (1) WO2002037219A2 (en)

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Also Published As

Publication number Publication date
JP2008165824A (en) 2008-07-17
EP1340178A2 (en) 2003-09-03
JP5265213B2 (en) 2013-08-14
JP2004524599A (en) 2004-08-12
EP1340178A4 (en) 2005-06-08
WO2002037219A2 (en) 2002-05-10
AU2002228700A1 (en) 2002-05-15
CA2426168A1 (en) 2002-05-10
WO2002037219A9 (en) 2004-05-13

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