Patent ID: 8315944

Claim:
A fraud detection method implemented by a processor, the method comprising: receiving a request to process a virtual currency transaction, the request including information related to transaction details regarding the virtual currency transaction; analyzing the information associated with the virtual currency transaction, via the processor, to determine whether the virtual currency transaction involves a user that is being tracked, wherein the information includes one or more characteristics of the virtual currency transaction, the user being tracked is associated with an elevated level of risk of fraud; when the virtual currency transaction involves the user that is being tracked, monitoring, via the processor, progress of the virtual currency transaction using tracked virtual currency to determine if the virtual currency of the virtual currency transaction is involved in a fraud event, the tracked virtual currency being tagged with unique identifiers to facilitate tracking of the virtual currency; when the virtual currency transaction includes virtual currency that is not tagged, (a) identifying at least a subset of the virtual currency from the virtual currency transaction; (b) associating unique identifiers to the virtual currency within the subset to facilitate tracking of the virtual currency; and identifying the virtual currency transaction as potentially fraudulent or not potentially fraudulent as a result of the monitoring based on predetermined transaction rules.