Patent ID: 8473415

Claim:
An apparatus for reducing fraud in a payment transaction system, the apparatus comprising: an electronic processor programmed to execute a set of instructions; and a data storage device coupled to the electronic processor and having the set of instructions stored therein, wherein when the set of instructions are executed by the programmed electronic processor, the apparatus: determines a point of compromise measure for each of one or more entities involved in accessing or processing payment transaction data; determines a payment transaction measure for a payment transaction, the payment transaction measure obtained by combining the point of compromise measure for each of those of the entities involved in accessing or processing data for the payment transaction; determines a payment account measure for a payment account, wherein the payment account measure is obtained by combining the payment transaction measures for each of a plurality of payment transactions conducted using the payment account; evaluates the payment account measure to determine if it satisfies a predetermined condition indicating that the account is at-risk for fraud in the future, wherein evaluating the payment account measure to determine if it satisfies the predetermined condition comprises one or more of: determining if the payment account measure exceeds a threshold value; determining if the payment account measure exceeds a specified value for a specified amount of time; or determining if a ratio of the payment account measure for a first time period and the payment account measure for a second time period exceeds a specified value; and generates a notification or alters the operation of the account if the payment account measure satisfies the predetermined condition.