Physical and logical detections for fraud and tampering

A payment processing system for detecting attempts to engage in fraudulent payment transactions,

• the payment processing system comprising:
• a payment reader and a payment service system remote from the payment reader,
• wherein the payment reader comprises:
• (i) a contact interface configured to receive a chip card, wherein the contact interface includes an input/output line configured to send an output signal and receive an input signal;
• (ii) a contact monitoring component coupled to the input/output line and configured to provide an analog monitoring voltage corresponding to voltages of the output signal and the input signal;
• (iii) an analog-to-digital converter coupled to the contact monitoring component and configured to convert the analog monitoring voltage to a digital monitoring signal;
• (iv) a payment reader processing unit configured to generate requests, provide the output signal to a payment service system based on the requests, receive the input signal from the payment service system, and determine responses based on the input signal,
• wherein one or more of the requests comprise test requests,
• wherein the payment reader processing unit is configured to determine electrical characteristics based on the digital monitoring signal and to monitor the responses and the timing of the responses,
• wherein the payment reader processing unit is configured to detect a fraudulent transaction or a tamper attempt based on a comparison of local test criteria to one or more of the electrical characteristics, the monitored responses, and the monitored timing,
• wherein the payment reader processing unit is configured to make a first determination of whether to take a first correction action in response to detection, by the payment reader processing unit, of the fraudulent transaction or the tamper attempt, and
• wherein the payment reader processing unit is configured to (1) if it is determined in the first determination not to take a first corrective action, generate a server request message including the electrical characteristics, the monitored responses, and the monitored timing, and (2) if it is determined in the first determination to take a first corrective action, to take the first corrective action in accordance with the first determination;
• and
• (v) a first communication interface, wherein the payment reader is configured to, if it is determined in the first determination not to take a first corrective action, transmit the server request message to the payment service system via the first communication interface;
• wherein the payment service system comprises:
• (i) a second communication interface;
• (ii) a transaction database comprising records of previous responses from previous payment transactions, previous monitored timing for the previous payment transactions, and previous electrical characteristics for the previous payment transactions;
• and
• (iii) a payment service system processing unit configured to receive the server request message via the second communication interface,
• wherein the payment service system processing unit is configured to extract the electrical characteristics, the monitored timing, and the monitored responses from the server request message,
• wherein the payment service system processing unit is configured to make a second determination regarding a fraudulent transaction or tamper attempt based on a comparison of server test criteria to one or more of the electrical characteristics, the monitored responses, and the monitored timing,
• wherein the payment service system processing unit is configured to generate a fraud or tamper determination message based on the second determination,
• wherein the payment service system processing unit is configured to transmit the fraud or tamper determination message to the payment reader via the second communication interface and the first communication interface, and
• wherein the payment service system processing unit is configured to update the server test criteria based on the electrical characteristics, the monitored responses, the monitored timing, the previous electrical characteristics, the previous responses, and the previous monitored timing, and
• wherein the payment reader processing unit is further configured to take a second corrective action based on the fraud or tamper determination message.