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Method for an extensible and configurable order characteristics based fraud score calculation framework

IP.com Disclosure Number: IPCOM000010884D
Publication Date: 2003-Jan-29
Document File: 3 page(s) / 45K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is a method for an extensible and configurable order characteristics based fraud score calculation framework. Benefits include improved functionality and improved design flexibility.

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Method for an extensible and configurable order characteristics based fraud score calculation framework

Disclosed is a method for an extensible and configurable order characteristics based fraud score calculation framework. Benefits include improved functionality and improved design flexibility.

Background

        � � � � � The order characteristics that credit card-processing services use result in some untrapped fraudulent orders. This situation is partly because the services examine credit card information, not electronic retailer (e-tailer) specific customer profile and order history data. Credit card processing services typically do not have the capability to determine that a set of preauthorizations using different credit cards are related in that their use is being attempted for the same order. As a result, stolen wallet fraud is not easily trapped.

        � � � � � Although most credit card processing services enables some configuration of fraud score element weighting, most do not offer the capability to finely tune the fraud score. They do not enable new fraud score elements to be easily added to their calculation method due to business customer requirements.

Description

        � � � � � The disclosed method is a framework that enables plug-in modules to be added to support the calculation of specific fraud-score elements. The framework enables the addition of modules. The relative value of each fraud score element provided by the modules is configurable through a well-defined XML structure. Weightings, which are based on business judgments, can be assigned to individual elements. In addition, each of the existing plug-in modules that provide a fraud score element has component values that are configurable through a well-defined XML structure.

        � � � � � An implementation of the disclosed method includes a set of plug-in modules that utilize the following order-characteristics to calculate a fraud score:

•        � � � � Order velocity–number of orders over time (can be multiple tiers)

•        � � � � Order area code–certain area codes may be high risk

•        � � � � First and last name characteristics

•        � � � � Shipping method–expres...