Means to Automatically Detect Fraud In Transaction Conducted on Consumer-Owned Devices
Publication Date: 2010-Nov-15
The IP.com Prior Art Database
Disclosed is a method to detect consumer fraud when a customer uses their own handheld device to conduct a point of sale transaction. The system uses existing in-store security video cameras and associates the activity they capture with a lane manager application that monitors the activity on consumers’ devices. Video analytic software detects instances of fraud.
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Means to Automatically Detect Fraud In Transaction Conducted on Consumer -Owned Devices
Point of Sale (POS) transactions conducted on consumer-owned devices, such as using smart phones to scan in-store items into shopping lists, can have significant benefits to both consumers and retailers. However, these transactions, done by consumers on their own devices, are difficult to monitor/audit automatically; thus, the process exposes retailers to fraud and inventory and profit shrinkage.
This disclosure describes a method where fraud can be automatically detected in POS transactions conducted on consumer-owned devices (smart phones, etc.). The method uses the following two technologies:
1. Track the user activity using existing in-store security cameras. Tracking a person in the store using in-store security cameras is a known art.  In addition to tracking a person in the store, the method requires that the image processing software is programmed to focus on the cart opening area and detect when an item is placed in or removed from the cart. Multiple cameras can be used if a particular camera view is blocked for any reason.
2. Monitor the POS transaction activities via virtual terminal session at the in-store server. Normally, to build a shopping list based on the scanned items and conduct a transaction using consumer-owned devices, a store-provided application running on the consumer-owned device establishes a connection which interacts with a virtual terminal se...