System and Method For Identity Chaining

Abstract

An identity chaining fraud detection method that allows each current transaction to be linked to other transactions through commonly shared identities. Over a period of time the links create a chain of associated transactions which can be analyzed to determine if identity variances occur, which indicates that fraud is detected. Additionally, if a specific identity is detected as being fraudulent, that identity can be tagged as fraudulent and can be referenced by a plurality of other merchant transaction chains to determine fraud.

What is claimed is: 
     
         1 . A method comprising:
 receiving a first transaction at a central server computer from a merchant computer;   identifying a plurality of transactions related to the first transaction based on one or more identities associated with the first transaction;   linking the first transaction to each of the plurality of transactions that share at least one of the one or more identities, to form a chain of linked transactions; and   comparing each transaction in the chain of linked transactions to a filter list to determine whether the first transaction is fraudulent.   
     
     
         2 . The method of  claim 1 , further comprising:
 if the first transaction is determined to be fraudulent, then adding the one or more identities associated with the first transaction to the negative list.   
     
     
         3 . The method of  claim 1 , wherein the plurality of transactions include transactions from a plurality of different merchants. 
     
     
         4 . The method of  claim 1 , further comprising:
 maintaining a plurality of filter lists, each associated with a different merchant; and   comparing each transaction in the chain of linked transactions to each of the plurality of filter lists.   
     
     
         5 . The method of  claim 4 , wherein each filter list is a negative list populated with identities selected by its associated merchant. 
     
     
         6 . The method of  claim 1 , further comprising:
 receiving a second transaction, subsequent to the first transaction, from the first merchant; and   dynamically linking the second transaction to the plurality of transactions.   
     
     
         7 . The method of  claim 1 , further comprising:
 sending a response to the first merchant which indicates whether the first transaction is fraudulent, wherein the response can include a fraud score.   
     
     
         8 . The method of  claim 7 , wherein if the first transaction is linked to a fraudulent transaction conducted by a different merchant which shares at least one identity with the first transaction, the response can further indicate that the first transaction is linked to fraudulent activity. 
     
     
         9 . A system comprising:
 a central server computer, wherein the central server computer includes a computer readable medium and processor, and wherein the computer readable medium include code executable by the processor for implementing a method comprising
 receiving a first transaction from a merchant computer, 
 identifying a plurality of transactions related to the first transaction based on one or more identities associated with the first transaction, 
 linking the first transaction to each of the plurality of transactions that share at least one of the one or more identities, to form a chain of linked transactions, and 
 comparing each transaction in the chain of linked transactions to a filter list to determine whether the first transaction is fraudulent. 
   
     
     
         10 . The system of  claim 9 , wherein if the first transaction is determined to be fraudulent, then the server computer is configured to add the one or more identities associated with the first transaction to the negative list. 
     
     
         11 . The system of  claim 9 , wherein the plurality of transactions include transactions from a plurality of different merchants. 
     
     
         12 . The system of  claim 9 , wherein the method further comprises:
 maintaining a plurality of filter lists, each associated with a different merchant; and   comparing each transaction in the chain of linked transactions to each of the plurality of filter lists.   
     
     
         13 . The system of  claim 12 , wherein each filter list is a negative list populated with identities selected by its associated merchant. 
     
     
         14 . The system of  claim 9 , wherein the method further comprises:
 receiving a second transaction, subsequent to the first transaction, from the first merchant; and   dynamically linking the second transaction to the plurality of transactions.   
     
     
         15 . The system of  claim 9 , wherein method further comprises:
 sending a response to the first merchant which indicates whether the first transaction is fraudulent, wherein the response can include a fraud score.   
     
     
         16 . The system of  claim 15 , wherein if the first transaction is linked to a fraudulent transaction conducted by a different merchant which shares at least one identity with the first transaction, the response can further indicate that the first transaction is linked to fraudulent activity. 
     
     
         17 . A method for identifying fraudulent transactions, the method comprising:
 performing a chaining process linking a plurality of transactions;   generating a visualization of the plurality of transactions, wherein the visualization shows links between the plurality of transactions based on the chaining process; and   displaying the visualization such that fraudulent transactions in the plurality of transactions can be identified.   
     
     
         18 . The method of  claim 17 , further comprising:
 receiving a selection of a particular transaction shown in the visualization;   marking the particular transaction as fraudulent; and   adding at least one identity associated with the fraudulent transaction to a negative list.   
     
     
         19 . The method of  claim 17 , wherein the plurality of transactions were received by a payment processing network from a plurality of merchants. 
     
     
         20 . The method of  claim 17 , further comprising:
 dynamically updating the visualization of the plurality of transactions with a new transaction received from a merchant.