System and computer-implemented method for using location data on a card network to detect and address billing fraud

A computer-implemented method for improving the functionality of a computer of a payment card network for detecting and addressing billing fraud by an asserted provider of a good or service, the computer-implemented method comprising:

• collecting and storing on the computer of the payment card network one or more other card reader device locations associated with one more uses of a payment card by the asserted recipient in one or more financial transactions over a time period, wherein each other card reader device of the plurality of other card reader devices is associated with a different electronic identifier which identifies the other card reader device location to the computer of the payment card network and the computer of the payment card network determines each other card reader device location of the one or more of the other card reader device locations based on the different electronic identifier provided by each other card reader device of the plurality of other card reader devices to the payment network;
• determining by the computer of the payment card network a particular card reader device location of a particular payment card reader used by the asserted provider to make a payment request at a particular time at which the good or service was allegedly provided, wherein the payment request includes a particular electronic identifier of the particular card reader device which identifies the particular card reader device location to the computer of the payment card network and the computer of the payment card network determines the particular card reader device location based on the particular electronic identifier included in the payment request;
• comparing by the computer of the payment card network the other card reader device locations associated with one more uses of the payment card by the asserted recipient within the time period to the particular time at which the good or service was allegedly provided to the particular card reader device location at the particular time at which the good or service was allegedly provided;
• generating by the computer of the payment card network a potential fraud score which reflects a level of certainty based at least in part on a likelihood that the asserted recipient was physically capable of receiving the good or service from the asserted provider at the particular time;
• if the potential fraud score exceeds a pre-established fraud score notification threshold, notifying by the computer of the payment card network the asserted recipient of potential billing fraud;
• and
• if the potential fraud score exceeds a pre-established fraud score declination threshold, declining by the computer of the payment card network the payment request from the asserted provider.

A computer-implemented method for improving the functionality of a computer of a payment card network detecting and addressing billing fraud by an asserted provider of a healthcare good or service, the computer-implemented method comprising:

• collecting and storing on the computer of the payment card network one or more other card reader device locations associated with one more uses of a payment card by the asserted recipient in one or more financial transactions over a time period, wherein each other card reader device of the plurality of other card reader devices is associated with a different electronic identifier which identifies the other card reader device location to the computer of the payment card network and the computer of the payment card network determines each other card reader device location of the one or more of the other card reader device locations based on the different electronic identifier provided by each other card reader device of the plurality of other card reader devices to the payment network;
• determining by the computer of the payment card network a particular card reader device location of a particular payment card reader used by the asserted provider to make a payment request at a particular time at which the good or service was allegedly provided, wherein the payment request includes a particular electronic identifier of the particular card reader device which identifies the particular card reader device location to the computer of the payment card network and the computer of the payment card network determines the particular card reader device location based on the particular electronic identifier included in the payment request, and the particular payment card reader providing to the computer of the payment card network a charge code identifying the healthcare good or service as a healthcare good or service;
• comparing by the computer of the payment card network the other card reader device locations associated with one more uses of the payment card by the asserted recipient at a closest time to the particular time at which the healthcare good or service was allegedly provided to the particular card reader device location at the particular time at which the healthcare good or service was allegedly provided;
• generating by the computer of the payment card network a potential fraud score which reflects a level of certainty based at least in part on a physical distance between the recipient location at the closest time and the provider location at the particular time and a likelihood that the asserted recipient was physically capable of receiving the healthcare good or service from the asserted provider at the particular time;
• if the potential fraud score exceeds a pre-established fraud score notification threshold, notifying by the computer of the payment card network the asserted recipient of potential billing fraud;
• and
• if the potential fraud score exceeds a pre-established fraud score declination threshold, declining by the computer of the payment card network the payment request from the asserted provider.