Method And System For Detecting Fraud

Abstract

A system and method for detecting fraud when facilitating a payment transaction over a global wide area network. The method comprises receiving a sale information, receiving a payment information from a buyer, and analyzing a transaction information for fraud. If the analyzing indicates fraud, an enhanced transaction information is communicated to a human for fraud analysis. In one embodiment, the method comprises performing rule-based analyses to determine whether the transaction appears to be fraudulent. Rule-based analyses may include suspect data rules and velocity rules. Velocity rules generally determine whether there has been excessive activity that may lead to a conclusion that the transaction may be fraudulent. Suspect data rules are used to determine whether the billing, shipping, selling addresses, telephone numbers, and account numbers, and other data are in a syntactically correct format and whether they exist. In one embodiment, the method further comprises performing simple screening of the transaction information. In one embodiment, the method further comprises seeking approval from a third party such as a financial institution based on the payment information. The method may be implemented as part of a system that includes personal computers, server computers, and other personal computing devices, some of which may communicate over the Internet, and others which may communicate via dedicated communication lines.

1 . (canceled) 
     
     
         2 . A method for detecting fraud, comprising:
 beginning, between a payment provider server system and a payer device via a website interface that is provided for display on the payer device through a network, a real-time payment transaction;   receiving, by the payment provider server system via the website interface from the payer device through the network during the real-time payment transaction, purchase information pertaining to a purchase of a product from a payee;   receiving, by the payment provider server system via the web site interface from the payer device through the network during the real-time payment transaction, payment information that identifies a payer;   analyzing, by the payment provider server system during the real-time payment transaction, transaction information including the purchase information and the payment information;   determining, by the payment provider server system during the real-time payment transaction and based on the analysis of the transaction information, that the transaction information does not indicate fraud;   analyzing, by the payment provider server system during the real-time payment transaction and in response to determining that the transaction information does not indicate fraud, a transaction velocity associated with the payer;   determining, by the payment provider server system during the real-time payment transaction and based on the analysis of the transaction velocity, that the real-time payment transaction between the payer and the payee should be cancelled; and   cancelling, by the payment provider server system based on the determination that the transaction between the payer and the payee should be cancelled, the real-time payment transaction between the payer and the payee.   
     
     
         3 . The method of  claim 2 , wherein the determining that the transaction information does not indicate fraud further includes:
 performing, by the payment provider server system during the real-time payment transaction, fraud analysis on the transaction information to determine whether the transaction information indicates fraud.   
     
     
         4 . The method of  claim 2 , wherein the determining that the real-time payment transaction between the payer and the payee should be cancelled further includes:
 determining, by the payment provider server system during the real-time payment transaction, a payer name associated with the payer or a payee name associated with the payee is on a list of known fraudulent users.   
     
     
         5 . The method of  claim 2 , wherein the determining that the real-time payment transaction between the payer and the payee should be cancelled further includes:
 determining, by the payment provider server system during the real-time payment transaction, that a payer email address associated with the payer or a payee email address associated with the payee is on a list of known fraudulent users.   
     
     
         6 . The method of  claim 2 , wherein determining that the real-time payment transaction between the payer and the payee should be cancelled further includes:
 performing, by the payment provider server system during the real-time payment transaction, a rule-based analysis that generates a score for the real-time payment transaction; and   determining, by the payment provider server system during the real-time payment transaction and based on the score, that the real-time payment transaction between the payer and the payee should be cancelled.   
     
     
         7 . The method of  claim 2 , further comprising:
 placing, by the payment provider server system during the real-time payment transaction and based on the determining that the real-time payment transaction between the payer and the payee should be cancelled, the real-time payment transaction on hold; and   notifying, by the payment provider server system during the real-time payment transaction via the network, the payer and the payee that the real-time payment transaction is on hold.   
     
     
         8 . The method of  claim 7 , further comprising:
 notifying, by the payment provider server system during the real-time payment transaction via the network, a human fraud investigator that the real-time payment transaction is on hold.   
     
     
         9 . A fraud detection system, comprising:
 a non-transitory memory; and   one or more hardware processors coupled to the non-transitory memory and configure to execute instruction on the non-transitory memory to cause the system to perform operations comprising:
 beginning, with a payer device via a website interface that is provided for display on the payer device through a network, a real-time payment transaction; 
 receiving, via the website interface from the payer device through the network during the real-time payment transaction, payment information that is associated with the real-time payment transaction and that identifies a payer and a payee; 
 analyzing, during the real-time payment transaction, the payment information; 
 determining, during the real-time payment transaction and based on the analysis of the payment information, that the real-time transaction is not associated with fraud; 
 analyzing, during the real-time payment transaction and in response to determining that the real-time transaction is not associated with fraud, a transaction velocity associated with the payer; 
 determining, during the real-time payment transaction and based on the analysis of the transaction velocity, that the real-time payment transaction between the payer and the payee should be cancelled; and 
 cancelling, based on the determination that the transaction between the payer and the payee should be cancelled, the real-time payment transaction between the payer and the payee. 
   
     
     
         10 . The system of  claim 9 , wherein the determining that the real-time transaction is not associated with fraud further includes:
 performing, during the real-time payment transaction, fraud analysis on the payment information to determine whether the real-time transaction is associated with fraud.   
     
     
         11 . The system of  claim 9 , wherein the determining that the real-time payment transaction between the payer and the payee should be cancelled further includes:
 determining, during the real-time payment transaction, that a payer name associated with the payer or a payee name associated with the payee is on a list of known fraudulent users.   
     
     
         12 . The system of  claim 9 , wherein the determining that the real-time payment transaction between the payer and the payee should be cancelled further includes:
 determining, during the real-time payment transaction, that a payer email address associated with the payer or a payee email address associated with the payee is on a list of known fraudulent users.   
     
     
         13 . The system of  claim 9 , wherein determining that the real-time payment transaction between the payer and the payee should be cancelled further includes:
 performing, during the real-time payment transaction, a rule-based analysis that generates a score for the real-time payment transaction; and   determining, during the real-time payment transaction and based on the score, that the real-time payment transaction between the payer and the payee should be cancelled.   
     
     
         14 . The system of  claim 9 , wherein the operations further comprise:
 placing, during the real-time payment transaction and based on the determining that the real-time payment transaction between the payer and the payee should be cancelled, the real-time payment transaction on hold; and   notifying, during the real-time payment transaction via the network, the payer and the payee that the real-time payment transaction is on hold.   
     
     
         15 . The system of  claim 14 , wherein the operations further comprise:
 notifying, during the real-time payment transaction via the network, a human fraud investigator that the real-time payment transaction is on hold through a computing device associated with the human fraud investigator.   
     
     
         16 . A non-transitory machine-readable medium having stored thereon machine-readable instructions executable to cause a machine to perform operations comprising, comprising:
 beginning, with a payer device via a website interface that is provided for display on the payer device through a network, a real-time payment transaction;   receiving, via the website interface from the payer device through the network during the real-time payment transaction, purchase information that identifies a payee involved in the real-time payment transaction;   receiving, via the web site interface from the payer device through the network during the real-time payment transaction, payment information that identifies a payer involved in the real-time payment transaction;   analyzing, by the payment provider server system during the real-time payment transaction, the purchase information and the payment information;   determining, during the real-time payment transaction and based on the analysis of the purchase information and the payment information, that the real-time payment transaction does not indicate fraud;   analyzing, during the real-time payment transaction and in response to detecting that the real-time payment transaction does not indicate fraud, a transaction velocity associated with the payer;   determining, during the real-time payment transaction and based on the analysis of the transaction velocity, that the real-time payment transaction between the payer and the payee should be cancelled; and   cancelling, based on the determination that the transaction between the payer and the payee should be cancelled, the real-time payment transaction between the payer and the payee.   
     
     
         17 . The system of  claim 16 , wherein the determining that the real-time payment transaction does not indicate fraud further includes:
 performing, during the real-time payment transaction, fraud analysis on the purchase information and the payment information to determine whether the real-time payment transaction indicates fraud.   
     
     
         18 . The system of  claim 16 , wherein the determining that the real-time payment transaction between the payer and the payee should be cancelled further includes:
 determining, during the real-time payment transaction, a payer name associated with the payer or a payee name associated with the payee is on a list of known fraudulent users.   
     
     
         19 . The system of  claim 16 , wherein the determining that the real-time payment transaction between the payer and the payee should be cancelled further includes:
 determining, during the real-time payment transaction, that a payer email address associated with the payer or a payee email address associated with the payee is on a list of known fraudulent users.   
     
     
         20 . The system of  claim 16 , wherein determining that the real-time payment transaction between the payer and the payee should be cancelled further includes:
 performing, during the real-time payment transaction, a rule-based analysis that generates a score for the real-time payment transaction; and   determining, during the real-time payment transaction and based on the score, that the real-time payment transaction between the payer and the payee should be cancelled.   
     
     
         21 . The system of  claim 16 , wherein the operations further comprise:
 placing, during the real-time payment transaction and based on the determining that the real-time payment transaction between the payer and the payee should be cancelled, the real-time payment transaction on hold; and   notifying, during the real-time payment transaction via the network, the payer and the payee that the real-time payment transaction is on hold.