Payment network fraudulent card identification leveraging geofencing for multi-card remediation

A system for monitoring transactions for identifying fraudulent activity, the system comprising:

• a payment network configured to receive a transaction request from a payment gateway;
• a payment switch accessed via a payment switch interface, the payment switch hosted by a central server, the payment switch in electronic communication with the payment network to process transactions, the payment switch accessed via a payment switch interface, the payment switch configured to, receive the transaction request from the payment network, the transaction request including a timestamp and card identification data associated with a smart card, the transaction request executed via the smart card, the payment switch comprising:
• a fraud detection engine for executing a fraud detection application for early detection of a probability of fraud associated with the transaction request, the fraud detection engine configured to:
• trace an IP address of a source of the transaction request;
• using the IP address, derive geolocation coordinates of a location where the transaction request is requested;
• retrieve geolocation coordinates and an IP address of a source of the transaction request;
• create a timestamp of a time of an execution of the transaction request;
• compare the transaction request to all transactions received, by the payment network, to identify transactions that:
• were received, by the payment network, within a predetermined time immediately preceding the timestamp;
• comprise card identification data that is identical to the card identification data of the transaction request;
• and
• comprise a geolocation that is within a predetermined proximity to the geolocation of the transaction request;
• in response to the comparing, identify a number of transactions greater than a first threshold that are received within the predetermined time and the geolocation is within the predetermined proximity to the geolocation coordinates of the location where the transaction request is requested;
• prior to declining the transaction request, trigger a multi-factor authentication for authenticating a user of the smart card, the multi-factor authentication comprising, executing each of a first-factor authentication, a second-factor authentication and a third-factor authentication;
• and
• in response to a receipt of an unauthenticated response to at least one or more of the first-factor authentication, the second-factor authentication and the third-factor authentication:
• execute a dynamic geofencing on the geolocation associated with the transaction request, the geofencing comprising:
• transmitting a first instruction to the payment network, the first instruction declining transaction requests from being executed via the smart card from within the geolocation;
• and
• transmitting a second instruction to the payment network, the second instruction declining transaction requests from being executed by a plurality of smart cards associated with the payment network that are being executed within the geolocation;
• following the executing, monitoring transaction requests received within the geolocation coordinates of the location of the transaction request;
• in response to declining transaction requests received within the geolocation, receiving a plurality of requests to override the geofencing;
• re-executing the multi-factor authentication for authenticating the user requesting the override;
• and
• in response to receiving a number of override requests greater than a second threshold and that are determined to be authentic, overriding the geofencing around the geolocation coordinates of the location.