Fraud detection system, method, and device

Abstract

A system for authentication for a user device associated with a user, said system comprising: a processing system to generate a first user interface running on a screen of said user device, said first user interface comprising one or more components, wherein said one or more components comprises a first icon, which when activated, directs a user to a second user interface to select a secret pattern, a second icon, which when activated, generates a current randomly populated keyboard, further wherein said processing system provides a current Personal Identification Number (PIN) to said user by correlating said secret pattern with the current randomly populated keyboard, and a regular keyboard for said user to enter a PIN for authentication.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS[0001]This application claims priority to U.S. Provisional Application No. 62 / 089,615 filed Dec. 9, 2014, which is hereby incorporated by reference herein in its entirety.FIELD OF THE INVENTION[0002]The present disclosure relates to a system, method and device for fraud detection in transactions over communications networks.BACKGROUND[0003]Credit card fraud costs banks time, money and has become an increased problem with cyber-crime, phishing schemes, and other programs designed to take advantage of fraudulent credit cards or means for payment.[0004]Additionally, due to the scale of card fraud, issuing banks tend to implement quite aggressive strategies in order to combat the problem. This, however, leads to high false positive rates that cause extreme inconveniences to cardholders and merchants resulting in high operational costs (including resolution management) to the issuer. As an additional consequence, high volumes of false positives may ...

AI Technical Summary

Benefits of technology

The invention is a method for authenticating a transaction by comparing the transaction information with database information to determine if it is potentially fraudulent. The method involves obtaining information about the first device and the second device involved in the transaction, and determining the level of correlation between them. The transaction is authenticated based on the level of correlation between the first and second device information, and a pre-determined threshold. The invention also includes methods for prompting for the input of a PIN, password, or biometric data, and using crowdsourcing data to generate a risk level weighted by the time and age of the data. The technical effects of the invention include improved security and prevention of fraudulent transactions.

Problems solved by technology

Credit card fraud costs banks time, money and has become an increased problem with cyber-crime, phishing schemes, and other programs designed to take advantage of fraudulent credit cards or means for payment.

Additionally, due to the scale of card fraud, issuing banks tend to implement quite aggressive strategies in order to combat the problem.

This, however, leads to high false positive rates that cause extreme inconveniences to cardholders and merchants resulting in high operational costs (including resolution management) to the issuer.

As an additional consequence, high volumes of false positives may also prevent the issuer from declining further transactions, leading to additional losses.

Existing risk-engine strategies do not have the benefit of information on user generated information (including online complaints regarding merchants, hidden charges, billing errors) and the real-time status of the cardholder, they are not well suited to cross-border transactions where behavioral and historical patterns do not fit the norm.

Moreover, without verification in real time at the point of sale between the various players in the ecosystem (e.g., banks, card companies, merchants, consumers), real-time fraud detection / prevention has been challenging, to enable effectively.

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