Unified Fraud and Event Management System for Real-Time Transaction Analysis
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Solution Overview
Problem
Current banking security systems are reactive and lack integration of IT security event management and fraud detection, making them inefficient in preventing and detecting fraudulent activities in real-time across various electronic banking channels, and require frequent updates to the Core Banking System.
Innovation Solution
An Integrated Fraud and Event Management System that continuously integrates and analyzes information from IT Security Event Management and Fraud Detection systems, using a Fraud and Security Events Data Repository and real-time communication mechanisms to provide accurate decision support for transaction authorization, reducing the need for constant Core Banking System alterations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If separate IT security event management and fraud detection systems are used, then each system can be specialized and optimized, but the overall system complexity increases and integration efficiency decreases
Solution Approach 1:
The patent merges IT security event management and fraud detection into a single integrated system that processes both security events and transaction data through unified analysis modules, eliminating the need for separate systems while maintaining specialized detection capabilities through modular event and transaction analysis components
Solution Approach 2:
The integrated system employs multi-functional analysis modules that can process both security events and transaction data, allowing the same infrastructure to serve multiple detection purposes simultaneously, thereby reducing overall system complexity while maintaining comprehensive fraud and security monitoring capabilities
2Measurement precision
If the Core Banking System is frequently updated to incorporate new security rules and fraud detection capabilities, then detection accuracy improves, but system stability and maintenance costs worsen
Solution Approach 1:
The patent segments the fraud detection functionality into independent, externally-hosted analysis modules that communicate with the Core Banking System through standardized interfaces, allowing detection algorithms to be updated without modifying the Core Banking System itself, thus maintaining system stability while improving detection precision
Solution Approach 2:
The system introduces an intermediary layer between the Core Banking System and fraud detection logic, using standardized communication protocols and external analysis modules that can be updated independently, preventing frequent Core Banking System alterations while maintaining high detection accuracy through continuous rule updates in the intermediary layer
3Speed
If real-time analysis of all banking transactions is performed, then fraud detection speed improves, but processing time and computational resources worsen
Solution Approach 1:
The system applies partial analysis by focusing computational resources on transactions that exhibit suspicious patterns or deviations from normal behavior, rather than performing exhaustive analysis on every transaction, thereby achieving fast fraud detection for critical cases without excessive processing time for routine transactions
Data Source
AI summary
Methods and systems are disclosed for processing banking events. The methods and systems store data regarding a plurality of first banking events in a database. The methods and systems receive data regarding a second banking event and determine whether an electronic banking event analyzing system is available. If it is determined that an electronic banking event analyzing system is available, the stored data is analyzed, using the electronic banking event analyzing system, according to predetermined rules to determine a score indicative of proposed action regarding the second banking event. If it is determined that an electronic banking event analyzing system is not available, then a previously determined score is used as the score indicative of proposed action. The methods and systems electronically transmit the score indicative of proposed action and update the database with data regarding the second banking event based on the analysis.