Patent ID: 8567669
Filing Date: 2013-10-29
Classification: G06Q

Abstract:
1. A computer implemented method comprising: receiving, from a financial institution or an association of financial institutions, a payment card authorization data set comprising authorized transactions; receiving a daily fraud data set comprising transactions that are determined to be fraud; comparing the authorized transactions in the payment card authorization data set with the transactions in the daily fraud data set to identify matching transactions that are in both the payment card authorization data set and the daily fraud data set; generating an authorization extract file, the authorization extract file sorted by a merchant key; generating one or more fraud authorization files comprising the identified matching transactions, the one or more fraud authorization files sorted by the merchant key; compiling a first set of statistics for each merchant for each week by applying the generated authorization extract file, the compiled statistics used to generate a weekly summary authorization data set; compiling a second set of statistics for each merchant for each week by applying the generated fraud authorization extract file, the compiled statistics used to generate a weekly summary fraud authorization data set; combining the weekly summary authorization data set of each week in a predetermined number of most recent weeks to obtain a combined weekly summary authorization data set; combining the weekly summary fraud authorization data set of each week in the predetermined number of most recent weeks to obtain a combined weekly summary fraud authorization data set; compiling, based on data in the combined weekly summary authorization data set, a third set of statistics; compiling, based on data in the combined weekly summary fraud authorization data set, a fourth set of statistics; generating, based on the weekly summary authorization data set and the weekly summary fraud authorization data set, a merchant profile data set, the merchant profile data set stored for use-in the fraud prediction system; and generating, based on the third set of statistics and the fourth set of statistics, a default merchant profile data set, the default profile data set stored for use in the fraud prediction system; scoring a new transaction based on at least one of the merchant profile data set and the default profile data set, the scoring being performed in real-time when the new transaction occurs, the scoring generating a score characterizing a likelihood of the new transaction being fraudulent; transmitting the score to an entity involved in the new transaction, the score indicating whether the new transaction should be completed; placing each transaction out of the matching transactions into segments based on whether the transaction is cross border or domestic and card present or card not present, and based on point-of-sale entry mode; and providing adaptive segmentation by which only the profile variables for the most popular segments are transmitted in the merchant's profile, wherein the most popular segments comprise a predetermined number of segments that have a greater number of transactions than other segments.