Patent Document ID: 8032448
Application ID: 11867602
Patent Status: 1

Claim One:
1. A system for detecting risk in a transaction, the system comprising: a database of unique merchant names, each merchant name associated with a merchant cluster, each merchant name being textual data or other high categorical data; at least one computing system implementing a transaction processing component that receives a transaction of a plurality of transactions between a consumer and a merchant, the transaction process component deriving transaction data from the transaction, the transaction processing component determining from the database a unique merchant identity for the merchant; and at least one computing system implementing a statistical model that receives the derived transaction data and the unique entity identity to output a score indicative of a level of risk in the transaction; wherein the statistical model uses clustered context vectors generated by: selecting a plurality of high categorical information elements from the plurality of transactions, linking each high categorical information element with a context vector in a vector space such that high categorical information elements that co-occur in the plurality of transactions have context vectors that are similarly oriented in the vector space, the co-occurrence representing that context vectors corresponding to the co-occurring high categorical information elements are less than a predetermined distance apart in the vector space for more than a predetermined number of transactions, and clustering the context vectors of the high categorical information elements into a number of clusters that is less than number of high categorical information elements, each cluster being a low categorical information cluster.