System and method for enhanced fraud detection in automated electronic credit card processing

a fraud detection and automated technology, applied in the field of credit card verification processes, can solve the problems of only being able to perform authorization techniques, unauthorized users, credit cards inherently possessing a certain degree of fraud risk, etc., and achieve the effect of reducing the number of fraudulent electronic credit card transactions, enhancing fraud detection, and reducing the number of fraudulent transactions

USRE38572E1Inactive Publication Date: 2004-08-31TETRO DONALD +2
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Patent Information

Authority / Receiving Office
US · United States
Patent Type
Patents(United States)
Current Assignee / Owner
Publication Date
2004-08-31
Estimated Expiration
Not applicable · inactive patent

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Abstract

A method and system for authorizing an electronic credit card transaction having enhanced measures for detecting fraudulent transactions. A user .[.at a remote terminal attempting to conduct an electronic credit card transaction.]. is prompted to input the user's credit card information, address, and social security number. .[.The information input by the user is retrieved and used for identification purposes..]. Initially, the input credit card information is submitted to an issue of the user's credit card to determine whether the input credit card information is valid. The social security number .[.input by the user.]. is next checked .Iadd.against a separate social security number database .Iaddend.to determine if it corresponds to the user. .[.A database having a stored list of social security numbers is accessed, wherein each of the stored social security numbers includes at least one address stored therewith corresponding to an address of an individual identified by the respective social security number..]. The addresses stored in association with the input social security number are retrieved and compared with the input address to determine if the input address corresponds to any of the retrieved stored addresses. If the input credit card information has been confirmed by the issuer as being valid and the address input by the user matches any of the retrieved address stored in association with the input social security number, the electronic credit card transaction is authorized .[.and allowed to transpire. The social security number database is stored and accessed separately from the issuer's credit card information database to provide an added measure of protection against a person fraudulently gaining access to one of the database, since access to the information in both databases is required to complete the financial transaction..].
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Description

BACKGROUND OF THE INVENTION1. Field of the InventionThe present invention relates generally to credit card verification processes, and specifically to an improved automated system and process for detecting and preventing the fraudulent use of credit cards by unauthorized users.2. Description of Related ArtCredit cards have conventionally been used for financial transactions for reasons of public convenience and economy. Typically, a purchaser merely needs to present the credit card to a vendor to complete a transaction, where all information necessary to complete the financial transaction is contained on the credit card. Credit cards inherently possess a certain degree of risk for fraudulent use, since the credit card information necessary for the financial transaction appears on the face of the credit card. Thus, if a credit card is lost or stolen, an unauthorized user of the credit card may complete financial transactions by merely presenting the credit card number to a vendor. In...

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Embodiment Construction

The following description is provided to enable any person skilled in the art to make and use the invention and sets forth the best modes contemplated by the inventors of carrying out their invention. Various modifications, however, will remain readily apparent to those skilled in the art, since the general principles of the present invention have been defined herein specifically to provide enhanced fraud detection in automated electronic credit card processing.

Referring now to FIG. 1, a schematic block diagram of the components of the electronic credit card processing system 10 of the present invention is illustrated. The system 10 includes a central station 12, a remote terminal 14, a cardholder information database 16 of an issuer of a credit card, and a social security number information database 18. Central station 12 includes a processing unit 20, memory 22, and input / output (I / O) interface 24. Processing unit 20 may include a central processing unit (CPU), microprocessor, or ...