Patent ID: 6330546
Filing Date: 2001-12-11
Classification: G06Q,G07F,H04M

Abstract:
A computer implemented method of determining a level of risk for a transaction in an account of a transacting entity, the method comprising:storing a predictive model of risk-associated transactions generated from high risk and low risk historical transactions of transacting entities and the profiles of the transacting entities;receiving in real time a current transaction of a transacting entity for a type of account, the current transaction received prior to completion of the transaction by the transacting entity;generating in real time a signal indicative of the level of risk associated with the current transaction by applying the current transaction and a profile summarizing a pattern of historical transactions of the transacting entity to the predictive model by:selecting high risk and low risk transactions and transacting entity data associated with the selected transactions;segregating transactions into time intervals, with each time interval representing at least one transaction of the account during the time interval;randomly selecting low risk time intervals, and for any sequence of high risk time intervals of an individual account, selecting only initial high risk time intervals; andgenerating risk related variables from the selected time intervals and the profiles associated with the selected accounts; andtransmitting in real time the signal indicative of the level of risk to at least one of the transacting entity or a second entity to allow for either completion or termination of the transaction.