Patent ID: 8595062

Claim:
A method of detecting potentially fraudulent transactions, the method comprising: providing an electronic registration (ER) system having an ER database of entries for sold items, each said entry including a unique identifier of a corresponding sold item, and each said item having reward points associated therewith, the reward points being redeemable in connection with a rewards program administered at least in part by a rewards program system; querying the ER database to locate a matching entry when an item is presented for return or refund at a location, using a processor of the ER system, and determining whether the item presented for return or refund has been registered with the rewards program system and whether reward points associated with the item presented for return or refund have been credited to a member and/or redeemed by the member when the item is presented for return or refund at the location, using the processor of the ER system; sending a signal to the location authorizing the return or refund subject to any return/refund policies of the location when the item presented for return or refund has not been registered with the rewards program system and the reward points associated with the item presented for return or refund have not been credited to the member; sending a signal to the location authorizing the return or refund subject to any return/refund policies of the location, and authorizing the debiting of a corresponding number of reward points from the member when the item presented for return or refund has been registered with the rewards program system and the reward points associated with the item presented for return or refund have been credited to the member; and sending a signal to the location denying the return or refund when the item presented for return or refund has been registered with the rewards program system, the reward points associated with the item presented for return or refund have been credited to the member, and the reward points have been redeemed.