Patent ID: 8019678

Claim:
A method for evaluating fraud risk in an electronic commerce transaction and providing a representation of the fraud risk to a merchant using electronic communication, the method comprising: one or more processors generating and storing two or more fraud risk mathematical models, each model having a corresponding distribution of fraudulent transactions and a corresponding distribution of non-fraudulent transactions; defining for each mathematical model a first point corresponding to a risk estimate at which a percentage of fraudulent transactions begins to have a non-zero value; a second point corresponding to a risk estimate at which a percentage of non-fraudulent transactions begins to have a zero count; and a third point corresponding to a risk estimate at which the percentage of fraudulent transactions equals the percentage of non-fraudulent transactions; the one or more processors receiving information about a transaction and performing: for each fraud risk mathematical model of the two or more fraud risk mathematical models, applying the information about the transaction to said each fraud risk mathematical model, said each fraud risk mathematical model producing a corresponding raw score; transforming the corresponding raw score into a corresponding risk estimate for said each fraud risk mathematical model; blending the corresponding risk estimate of said each fraud risk mathematical model into a single fraud score for the transaction including: for said each risk estimate corresponding to said each fraud risk mathematical model, determining a corresponding fraud risk zone, wherein the fraud risk zones are determined based on the first point, the second point, and the third point defined by a particular fraud risk mathematical model; determining a weighting factor to apply to said each risk estimate based on the corresponding fraud risk zone; modifying said each risk estimate using that weighting factor.