Abstract:
An electronic method of fraud prevention at a host system, comprises receiving, at a host system, a request to purchase one or more digital products and a request to settle the purchase by an Internet bank transfer. The host system connects the user to a third party system to enable the user to attempt to settle the purchase by making the Internet bank transfer from a bank account of a bank. The host system monitors the attempt to settle the purchase by an Internet bank transfer from the bank account to determine whether it is indicative of an unacceptable fraud risk, and terminates the transaction without releasing the requested one or more digital products in response to determining that the fraud risk is unacceptable.

Description:
FIELD 
       [0001]    The invention relates to an electronic method of fraud prevention in relation to transactions for digital goods. 
       BACKGROUND 
       [0002]    Selling digital goods, such as mobile phone recharge vouchers, over the Internet exposes the seller to significant fraud risks, in part because the digital goods are delivered very rapidly after completion of the financial transaction so that fraud must be detected in real-time before the transaction is completed so that intervention can take place before the digital goods are released. 
         [0003]    In this respect, it will be appreciated that from the perspective of the seller computer system it can be difficult to discern the difference between a genuine user of the system, a human user using fraudulent details and a “bot”—i.e. a computer program designed to try to fraudulently obtain digital goods from a website. 
         [0004]    To date the use of electronic banking to pay bills and the like has been a relatively low source of fraud, primarily because if fraud is detected subsequent to the transaction, debt recovery can be resumed. Accordingly, providing electronic access to a user&#39;s bank account to pay for digital goods carries the risk of increasing fraud levels in relation to electronic banking. As a result, there has been a reluctance to provide access to electronic banking as a means of settling payment in respect of on-line electronic purchase. As a result, electronic purchase are usually settled by credit card or an intermediary system such as PayPal. 
         [0005]    Accordingly, there is a need for fraud mitigation in the context of electronic banking being used to pay for digital goods. 
       SUMMARY 
       [0006]    In a first aspect, the invention provides an electronic method of fraud prevention at a host system, the method comprising:
       receiving, at a host system, a request to purchase one or more digital products,   receiving, at the host system, a request to settle the purchase by an Internet bank transfer;   connecting the user to a third party system to enable the user to attempt to settle the purchase by making the Internet bank transfer from a bank account of a bank;   monitoring, with the host system, the attempt to settle the purchase by an Internet bank transfer from the bank account to determine whether it is indicative of an unacceptable fraud risk; and   terminating, with the host system, the transaction without releasing the requested one or more digital products in response to determining that the fraud risk is unacceptable.       
 
         [0012]    In an embodiment, monitoring the attempt to settle the purchase comprises:
       receiving, from the third party system, an identifier unique to the bank account; and   processing the received identifier to assess a fraud risk of the transaction, the processing including determining whether any prior transactions associated with the received identifier are indicative of an unacceptable fraud risk.       
 
         [0015]    In an embodiment, the third party system is configured to enable the user to specify details of the Internet bank transfer. 
         [0016]    In an embodiment, the third party system enables the used to select a bank account from which funds are to be transferred by Internet bank transfer. 
         [0017]    In an embodiment, the identifier is unique to the bank account but does not allow the host system to identify the bank account. 
         [0018]    In an embodiment, monitoring the attempt to settle the purchase comprises monitoring completion of at least one web forms to determine whether a manner of completion of the at least one web form is indicative of the at least one web form not being completed by a human user. 
         [0019]    In an embodiment, the digital product is a mobile device recharge voucher. 
         [0020]    In a second aspect, the invention provides a host system for fraud prevention, the host system comprising:
       a purchase request receiver configured to receive a request to purchase one or more digital products,   a payment module configured to receive a request to settle the purchase by an Internet bank transfer, the payment module configured to connect the user to a third party system associated with a bank to thereby enable the user to attempt to settle the purchase by making the Internet bank transfer from a bank account of the bank;   a transaction monitor configured to monitor the attempt to settle the purchase by an Internet bank transfer from the bank account to determine whether it is indicative of an unacceptable fraud risk; and   a transaction terminator configured to terminate the transaction without releasing the requested one or more digital products in response to determining that the fraud risk is unacceptable.       
 
         [0025]    In an embodiment, the transaction monitor monitors the attempt to settle the purchase by:
       receiving an identifier unique to the bank account from the third party system; and   processing the received identifier to assess a fraud risk of the transaction, the processing including determining whether any prior transactions associated with the received identifier are indicative of an unacceptable fraud risk.       
 
         [0028]    In an embodiment, the third party system is configured to enable the user to specify details of the Internet bank transfer. 
         [0029]    In an embodiment, the third party system enables the used to select a bank account from which funds are to be transferred by Internet bank transfer. 
         [0030]    In an embodiment, the identifier is unique to the bank account but does not allow the host system to identify the bank account. 
         [0031]    In an embodiment, the transaction monitor is configured to monitor the attempt to settle the purchase by monitoring completion of at least one web form to determine whether a manner of completion of the at least one web form is indicative of the at least one web form not being completed by a human user. 
         [0032]    In an embodiment, the digital product is a mobile device recharge voucher. 
         [0033]    The invention also provides computer program code which when executed implements the above method and a tangible computer readable medium comprising the computer program. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0034]      FIG. 1  is a flowchart of an embodiment for fraud detection during payment by bank account for a mobile phone recharge; 
           [0035]      FIG. 2  is a flowchart of an embodiment for fraud detection during payment by bank account for the purchase of other digital products; 
           [0036]      FIGS. 3 to 12  are examples of user interfaces for use in the method of  FIG. 1 ; 
           [0037]      FIG. 13  is one example of a system for implementing the method of  FIG. 1 ; and 
           [0038]      FIG. 14  shows further detail of the host system of  FIG. 13 . 
       
    
    
     DETAILED DESCRIPTION 
       [0039]    One embodiment illustrated in  FIG. 1  relates to a method for preventing fraud when a user is paying for mobile prepaid recharge vouchers in real-time by accessing their bank account and selecting a bank account with which to complete the transaction. As shown in  FIG. 2 , the method can be extended, in another embodiment, to the purchase of other digital goods. 
         [0040]    Referring to  FIG. 1 , in the method of the embodiment, the user (also referred to as a subscriber) initiates a prepaid mobile phone recharge process by entering a mobile phone number  110 . The user then selects a recharge amount  120  and a payment method.  FIG. 1  shows the case where the user selects to pay using their bank account  130  and enters relevant details for a valid transaction  140 . From the user&#39;s perspective, the payment is then accepted  150  and the transaction is complete  160 . 
         [0041]    While the process  100  is being undertaken from the user&#39;s perspective, a number of additional steps are occurring in the background. In this respect, a host system  1330  (see  FIGS. 13 and 14 ) has a purchase request receiver  1411  which present a web site to users via which users can purchase mobile device recharge vouchers that the host system can release to the user from digital goods database  1423  stored in a memory  1420  of the host system. The host system  1330  is configured to engage in a number of validation processes while the user attempts to make their purchase. The first validation process  112  is based on data associated with the mobile device and the origin of the request. The first validation process  112  takes into account data such as the location of the user&#39;s device, the identification of the device, previous interactions with the device (such as the number of completed, abandoned or unsuccessful transactions), an IP address from which the request is received, the mobile number and other existing attributes maintained in the host server  1330 . The host system  1330  assigns a score to the device based on these factors using transaction scoring rules  1421  and the score is compared against defined values to determine whether to allow the transaction to continue. If fraud is detected at this stage or at a later stage in the transaction, the transaction is terminated before the transaction completes. 
         [0042]    The host  1330  also sends a validation request  114  to the telecommunication network  1340  associated with the mobile number to ask it to confirm that the phone number is registered with the network. 
         [0043]    When the user selects a bank account  130 , a further monitoring of the transaction occurs by the host  1330 . In the embodiment, the transaction with the bank is carried out under control of a third party system in the form of gateway controller  1350  which provides a gateway to each of a plurality of banks  1361 ,  1362 ,  1363  shown in  FIG. 13 . Accordingly, when a payment module  1412  implemented by processor  1410  of host system  1330 , receives a request for payment by Internet bank transfer, gateway connector  1413 , connects the user to the gateway controller  1350 . In another embodiment, there may be separate gateway controllers of each bank 
         [0044]    In order to validate the transaction, a transaction monitor  1414  of the host system monitors the transaction. The monitoring includes the transaction monitor  1414  obtaining an identifier from the gateway controller  1350  which does not identify the bank account but is unique to the bank account. The host system conducts a further scoring of the transaction based on any data associated with the identifier in the prior transaction database  1422 . For example, based on whether it has been used in other transactions. The gateway controller  1350  conducts a separate validation (e.g. to confirm that the log-in details are correct) and report the outcome to the host  1330 . As the user completes the bank account process an additional validation process is conducted  142  by the transaction monitor  1414 . This process may involve observing how the user attempts to complete the forms shown in  FIGS. 3 to 12  with a view to confirming that the behaviour in completing the forms is consistent with the user being a human and not a “bot”. For example, “bots” are sometimes configured to read the source code of a web page to determine how to complete the page and, in the course of doing so, may make an error that a human is unlikely to make, for example attempting to a select a shape in background text in an image that resembles a text entry box. In step  144 , the gateway controller  1350  validates the entered details against those held by the bank  1361 ,  1362 ,  1363  and confirms to the host that the funds can be reserved to be provided to the host system  1332 . Finally, when the user&#39;s payment is accepted, the telecommunication network  152  is instructed to update its records  152  by the host  1330 . At this point the voucher is provided to the user by goods releaser which releases the voucher from digital goods database  1423 . 
         [0045]    An analogous approach occurs in the generalised method  200  of selling digital products such as Apple iTunes vouchers, software licenses etc. In this process, the customer requests products  210  which can lead to a validation step  212  and, optionally, to request a validation to the supplier host network (equivalent to the Telco network  1340  of the first embodiment) to validate customer details or to advise whether the product can be supplied. The customer then confirms the details of the shopping cart  210  and selects a bank account and completes a bank account process  240  from which payment may be accepted  250  in order to complete the transaction  260  in a manner analogous to that performed in the mobile recharge method of  FIG. 1 . Accordingly, validation steps  232 ,  234 ,  242  and  244  are equivalent to validation steps  132 ,  134 ,  142  and  144  as are validation steps. However, it will be noted that in addition to the validation to the supplier host network of payment being received, there is an additional step of the supplier releasing goods  254  from an inventory to the customer. 
         [0046]      FIGS. 3 to 12  illustrate an example of a user interface for engaging in a recharge process. At a first user interface for initiating the recharge process  300  a user enters their prepaid service number into a box  310 . In this example, the number entered is “040000000”. The user then has a number of repayment options including to pay by credit card  301 , internet bank transfer  302 , PayPal  303 , or a voucher  304 . 
         [0047]      FIG. 4  shows the screen that is displayed after the user has selected to pay by internet bank transfer  302  in  FIG. 3 . In this respect, it will be apparent that the payment method is indicated as internet banking transfer  401 . The user has a set of possible recharge amounts  410  and in this case has selected the “$5.00 rev-up data” option and moves to the next screen by selecting the next button  411 . 
         [0048]    In  FIG. 5 , the user selection of the $5.00 rev up data option is indicated  501  and the user is asked to confirm that they should pay via internet banking  502 . Upon selection of internet banking, the screen is modified by adding the light box  610  shown in  FIG. 6 . In box  610 , the user has been presented with a number of participating banking institution options  620  and has selected to pay via the ANZ bank as indicated by selection icon  621 . In the embodiment, the user must confirm that they accept the terms and conditions  622  and then can proceed to the next stage by selecting the next button  623 . As is shown in  FIG. 7 , the user interface  700  continues to display details of internet banking in light box  710  which has been modified to include a request for customer details specific to the ANZ banking system  720  and the user is required to enter those details before moving to the next screen using the next button  721 . 
         [0049]      FIG. 8  shows an alternative display where the light box  810  is updated to show alternative display information for the Westpac Bank from which it will be apparent that the data displayed in the bank login stage illustrated in  FIGS. 7 and 8  will vary depending on the selected bank. 
         [0050]    Referring to  FIG. 9 , the user has progressed to the stage selecting an account as indicated in light box  910  and is offered the option to select between three different accounts  920  having different balances. The user has selected the “access cheque account”  921  and proceeds to the next screen by clicking on the next button. The user is then provided with reference details  1010  in  FIG. 10  and moves to the next screen by pressing the “next” button. 
         [0051]    In  FIG. 11 , the user interface is updated to remove the light box and the user receives a payment verification message  1110  as well as details of the payment  1120 . 
         [0052]      FIG. 12  illustrates that if the user has insufficient funds they will receive an error message  1210 . Similar error messages will be displayed if the user makes other errors when entering the data or if the transaction is to be declined because the fraud risk is too high. 
         [0053]      FIG. 13  shows an example of an architecture for implementing the invention. In  FIG. 13  the system  1300  involves a mobile device  1310  communicating via the Internet with the host system  1330 . The host also communicates with the Telco network  1340  and the gateway controller  1350  via the Internet  1320 . The gateway controller communicates directly with the first, second and nth banks  1361 ,  1362 ,  1363  via a private network. 
         [0054]    Persons skilled in the art will appreciate that in the case of more general supply of the electronic goods, the Telco  1340  can be replaced by one or more suppliers. Further, alternative types of devices can be used to access the host  1330  such as personal computers whether in the generalised digital goods process or for the recharge process. 
         [0055]    Further aspects of the method will be apparent from the above description of the system. It will be appreciated that at least part of the method will be implemented electronically, for example, digitally by a processor executing program code. In this respect, in the above description certain steps are described as being carried out by the host system. It will be appreciated that these steps will be carried out by software executed by one or more processors, for example using an appropriately configure computer server. It will be appreciated that such steps will often require a number of sub-steps to be carried out for the steps to be implemented electronically, for example due to hardware or programming limitations. For example, to carry out a step such as evaluating, determining or selecting, a processor may need to compute several values and compare those values. 
         [0056]    As indicated above, the method may be embodied in program code. The program code could be supplied in a number of ways, for example on a tangible computer readable storage medium, such as a disc or a memory device, e.g. an EEPROM, (for example, that could replace part of memory  103 ) or as a data signal (for example, by transmitting it from a server). Further different parts of the program code can be executed by different devices, for example in a client server relationship. Persons skilled in the art, will appreciate that program code provides a series of instructions executable by the processor. 
         [0057]    Herein the term “processor” is used to refer generically to any device that can process instructions and may include: a microprocessor, microcontroller, programmable logic device or other computational device, a general purpose computer (e.g. a PC) or a server. That is a processor may be provided by any suitable logic circuitry for receiving inputs, processing them in accordance with instructions stored in memory and generating outputs (for example on the display). Such processors are sometimes also referred to as central processing units (CPUs). Most processors are general purpose units, however, it is also know to provide a specific purpose processor, for example, an application specific integrated circuit (ASIC) or a field programmable gate array (FPGA). 
         [0058]    It will be understood to persons skilled in the art of the invention that many modifications may be made without departing from the spirit and scope of the invention; in particular it will be apparent that certain features of embodiments of the invention can be employed to form further embodiments. 
         [0059]    It is to be understood that, if any prior art is referred to herein, such reference does not constitute an admission that the prior art forms a part of the common general knowledge in the art in any country. 
         [0060]    In the claims which follow and in the preceding description of the invention, except where the context requires otherwise due to express language or necessary implication, the word “comprise” or variations such as “comprises” or “comprising” is used in an inclusive sense, i.e. to specify the presence of the stated features but not to preclude the presence or addition of further features in various embodiments of the invention.