Reducing false positives using customer data and machine learning

A computer-implemented method of detecting whether electronic fraud alerts are false positives prior to transmission to customer mobile devices based upon customer data, the method comprising:

• training a machine learning program using fraud classifications made in connection with at least one of a type of transaction data or a value of transaction data associated with a plurality of financial accounts, such that the machine learning program learns a characteristic of the transaction data that is indicative of different fraud classifications;
• receiving, by one or more processors, transaction data detailing a financial transaction associated with a customer, the data detailing the financial transaction being transmitted from a merchant computer terminal;
• inputting, by the one or more processors, the data detailing the financial transaction into a rules-based engine that determines whether to generate an electronic fraud alert for the financial transaction based upon the data detailing the financial transaction;
• when an electronic fraud alert is generated for the financial transaction,
• inputting, by the one or more processors, the data detailing the financial transaction into the machine learning program, and
• determining, using the trained machine learning program and based at least in part on a type of the transaction data or a value of the transaction data, a reason why the electronic fraud alert was generated,
• wherein the reason is a lost or stolen card, account takeover, a counterfeit card, or application fraud;
• determining, by the one or more processors, that the reason why the electronic fraud alert was generated can be verified by customer data;
• in response to determining that the reason can be verified by customer data, retrieving or receiving, by the one or more processors, first customer data;
• verifying, by the one or more processors, that the electronic fraud alert is not a false positive based upon analysis of the first customer data;
• and
• transmitting, by one or more transceivers, the electronic fraud alert to a mobile device of the customer.

A computer system configured to detect whether electronic fraud alerts are false positives prior to transmission to customer mobile devices based upon customer data, wherein the computer system comprises one or more processors and one or more transceivers and is configured to:

• training a machine learning program using fraud classifications made in connection with at least one of a type of transaction data or a value of transaction data associated with a plurality of financial accounts, such that the first machine learning program learns a characteristic of transaction data that is indicative of different fraud classifications;
• receive transaction data detailing a financial transaction associated with a customer, the data detailing the financial transaction being transmitted from a merchant computer terminal;
• input the data detailing the financial transaction into a rules-based engine that determines whether to generate an electronic fraud alert for the financial transaction based upon the data detailing the financial transaction;
• when an electronic fraud alert is generated for the financial transaction,
• input the data detailing the financial transaction into the machine learning program, and
• determining, using the trained machine learning program and based at least in part on a type of the transaction data or a value of the transaction data, a reason why the electronic fraud alert was generated,
• wherein the reason is a lost or stolen card, account takeover, a counterfeit card, or application fraud;
• determine that the reason why the electronic fraud alert was generated can be verified by customer data;
• in response to determining that the reason can be verified by customer data, retrieve or receive first customer data;
• verify that the electronic fraud alert is not a false positive based upon analysis of the first customer data;
• and
• transmit the electronic fraud alert to a mobile device of the customer.