System and Method for Detecting Merchant Points of Compromise Using Network Analysis and Modeling

A method for detecting a merchant point of compromise, comprising the steps of:

• electronically receiving, at a point-of-compromise detector of a computer system, transaction information, the computer system in electronic communication with a transaction processing network containing the transaction information;
• generating, by the point-of-compromise detector, at least one of an undirected network or a directed network based on the transaction information;
• extracting, by the point-of-compromise detector, features from the at least one of the undirected network or the directed network;
• and
• identifying, by the point-of-compromise detector, one or more point-of-compromise merchants based on the extracted features.

A computer-readable medium having computer-readable instructions stored thereon which, when executed by a point-of-compromise detector of the computer system, cause the point-of-compromise detector to perform the steps of:

• electronically receiving transaction information from a transaction processing network;
• generating at least one of an undirected network or a directed network based on the transaction information;
• extracting features from the at least one of the undirected network or the directed network;
• and
• identifying one or more point-of-compromise merchants based on the extracted features.