System and method for fraud detection in a mobile device

For use in a user device, a method comprising:

• communicating with a payment server;
• receiving a user input related to a payment process;
• calculating, by a mobile electronic device, a risk score;
• detecting potentially fraudulent activity as a function of the risk score, wherein the risk score is indicative of a likelihood of fraudulent activity associated with the payment process at the mobile electronic device, and wherein the risk score calculation is based on confidential information associated with a user that is stored on the user device;
• generating two set of parameter update values for the risk score, wherein a first set of parameter update values relates to changes to make if fraudulent activity is not detected and a second set of parameter update values relates to changes to make if fraudulent activity is detected;
• and
• transmitting, to the payment server, a payment action and the risk score associated with the payment action without disclosing the confidential information.

A non-transitory computer readable medium including a plurality of instructions that, when executed by a processor, are configured to cause the processor to detect potentially fraudulent activity by a user of an electronic device including the processor by:

• communicating with a payment server;
• receiving a user input related to a payment process;
• calculating a risk score;
• detecting potentially fraudulent activity as a function of the risk score, wherein the risk score is indicative of a likelihood of fraudulent activity associated with the payment process, and wherein the risk score calculation is based on confidential information associated with the user that is stored on the user device and updatable parameters;
• generating two sets of parameter update values for the risk score, wherein a first set of parameter update values relates to changes to make if fraudulent activity is not detected and a second set of parameter update values relates to changes to make if fraudulent activity is detected;
• and
• transmitting to the payment server a payment action and the risk score associated with the payment action without disclosing the confidential information.