Detection Of Compromise Of Merchants, ATMS, And Networks

A computer-implemented method for detecting compromise of financial transaction accounts associated with a merchant device, the method comprising:

• receiving authorization data for each of a number of financial transaction accounts that are authorized for use for a financial transaction with the merchant device;
• for each of the number of financial transaction accounts, in a memory associated with the computer:
• generating an account profile that contains predictive fraud variables to be used in conjunction with compromise cluster analytic variables to assign a compromise account score if any of the financial transaction accounts are identified as being part of a compromise;
• generating an account transaction profile that contains a purchase history of the account, the account transaction profile further containing one or more links between financial transaction accounts that are used at a particular merchant device each during a common time period;
• generating a merchant device profile that contains predictive fraud variables relevant for compromise cluster generation;
• and
• generating a merchant device account transaction history profile that contains financial transaction account volume and velocity statistics at numerous time intervals, and tracking data that tracks the number of accounts that experience fraud at a later date;
• receiving, by the computer, reported fraud data that represents a confirmed fraudulent use of one or more of the number of financial transaction accounts;
• and
• the computer generating a compromise profile for the one or more of the number of financial accounts based on a comparison of the reported fraud data with the account profile, account transaction profile, merchant device profile, and merchant device account history profile.