Method and apparatus for generating a bi-gram score in fraud risk analysis

US8244629B2 · kind B2 · utility

Inventors

• Michael Lewis · Nashville, US
• Frank King · Saratoga, US
• Thomas Arnold · Saratoga, US
• William Wright · Bedford, US
• John Pettit · Sausalito, US

Key dates

• Filing date: Jun 24, 2011
• Grant date: Aug 14, 2012
• Expiry date: Jun 24, 2031

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/03
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

Evaluating fraud risk in a transaction between consumer and a merchant over a network is disclosed. The merchant requests service over the network using a secure, open messaging protocol. An e-commerce transaction or electronic purchase order is received from the merchant, the level of risk associated with each order is measured, and a risk score is returned to the merchant. In one embodiment, data validation, highly predictive artificial intelligence pattern matching, network data aggregation and negative file checks are used to examine numerous factors to calculate fraud risk. A risk score is generated and compared to the merchant's specified risk threshold. The result is returned to the merchant for order disposition.