Automated proximity fraud account lock systems and methods

A system comprising:

• at least one server comprising:
• one or more processors;
• and
• one or more memories storing instructions that, when executed by the one or more processors, cause the at least one server to perform a process comprising:
• receiving, by the at least one server, a transaction request for initializing a transaction using at least one user-selected consumer account associated with a user, wherein the at least one user-selected consumer account is linked to a group of security devices, wherein the transaction request is associated with a merchant;
• receiving, by the at least one server from a portable computing device associated with the user, a proximity notification of whether a security device in the group of security devices associated with the user is in communication with the portable computing device and is within a proximity to the portable computing device, wherein each of the security devices in the group of security devices is configured to communicate with the portable computing device for authorizing transactions;
• determining, by the at least one server, whether the merchant is on a whitelist associated with approved merchants;
• in response to determining the merchant is on the whitelist, permitting the at least one user-selected consumer account to be used in the transaction by:
• authenticating, by the at least one server, the security device based on at least one security device identifier and an associated at least one signed certificate:
• determining, by the at least one server, whether none of the security devices are within the proximity to the portable computing device associated with the user based on the proximity notification;
• in response to determining that none of the security devices are within the proximity to the portable computing device, sending, by the at least one server to the user, an option to lock or allow usage of the at least one user-selected consumer account linked to the security device;
• receiving, by the at least one server, an indication that the user selected the option to lock the at least one user-selected consumer account linked to the security device;
• and
• in response to the indication to lock the at least one user-selected consumer account linked to the security device, locking, by the at least one server, the at least one user-selected consumer account to prevent the at least one user-selected consumer account from being used in the transaction with a point-of-sale terminal.

A non-transitory computer-readable medium storing instructions that, when executed by a computing system, cause the computing system to perform operations comprising:

• receiving, by at least one server, a transaction request for initializing a transaction using at least one user-selected consumer account associated with a user, wherein the at least one user-selected consumer account is linked to a group of security devices, wherein the transaction request is associated with a merchant;
• receiving, by the at least one server from a portable computing device associated with the user, a proximity notification of whether a security device in the group of security devices associated with the user is in communication with the portable computing device and is within a proximity to the portable computing device, wherein each of the security devices in the group of security devices is configured to communicate with the portable computing device for authorizing transactions;
• determining, by the at least one server, whether the merchant is on a whitelist associated with approved merchants;
• in response to determining the merchant is on the whitelist, permitting the at least one user-selected consumer account to be used in the transaction by:
• authenticating, by the at least one server, the security device based on at least one security device identifier and an associated at least one signed certificate:
• determining, by the at least one server, whether none of the security devices are within the proximity to the portable computing device associated with the user based on the proximity notification;
• in response to determining that none of the security devices are within the proximity to the portable computing device, sending, by the at least one server to the user, an option to lock or allow usage of the at least one user-selected consumer account linked to the security device;
• receiving, by the at least one server, an indication that the user selected the option to lock the at least one user-selected consumer account linked to the security device;
• and
• in response to the indication to lock the at least one user-selected consumer account linked to the security device, locking, by the at least one server, the at least one user-selected consumer account to prevent the at least one user-selected consumer account from being used in the transaction with a point-of-sale terminal.