Risk assessment rule set application for fraud prevention

US9842336B2 · kind B2 · utility

Assignee

• Visa International Service Association · US

Inventors

• Frederick Liu · Oakland, US
• Nancy Hilgers · Danville, US
• Mark Nelsen · Oakland, US
• Kevin Siegel · Milpitas, US
• Christopher Brown · Oakland, US
• Thomas Dwyer · Sunnyvale, US

Key dates

• Filing date: Dec 29, 2014
• Grant date: Dec 12, 2017
• Expiry date: Jul 21, 2035

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q20/405
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

Rules, applied to deny authorization of likely fraudulent transactions, are derived from a modified Patient Rule Induction Method algorithm that uses a target variable and a data set of past transactions each associated with a plurality of input variables and a hyper-rectangle enclosing a multi-dimensional space defined by a representation of the input variable values as points within the multi-dimensional space. While a count of the points within the hyper-rectangle is greater than a minimum support parameter, a first plurality of points proximal to edges of the hyper-rectangle are removed, where each such removing maximizes a mean value of the target variable, and then, while the mean value remains maximized, a second plurality of points proximal to the edges is added, where each adding maximizes or maintains the mean value. The hyper-rectangle is bounded within a minimum bounding box that defines the rules.