Method and system of detecting and using geofencing for fraud detection and modeling

A method for identifying fraud factors, comprising:

• storing, in a fraud database, a plurality of data points;
• storing, in a transaction database, a plurality of financial transactions;
• storing, in a consumer database, a plurality of consumer data entries, wherein each consumer data entry is associated with a consumer and includes at least a mobile device identifier and at least one home market;
• transmitting, by a transmitting device, the plurality of consumer data entries;
• receiving, by a receiving device, a plurality of location data points, wherein each location data point includes at least a mobile device identifier, a geographic location of a mobile device associated with the mobile device identifier, and a time and/or date at which the mobile device is identified as outside of a predetermined distance from the at least one home market associated with the corresponding consumer data entry;
• and
• identifying, by a processing device, at least one fraud factor for detecting fraud in a financial transaction, wherein the at least one fraud factor is based on at least the plurality of financial transactions, the plurality of data points, and each location data point.

A system for identifying fraud factors, comprising:

• a fraud database configured to store a plurality of data points;
• a transaction database configured to store a plurality of financial transactions;
• a consumer database configured to store a plurality of consumer data entries, wherein each consumer data entry is associated with a consumer and includes at least a mobile device identifier and an account identifier;
• and a processing device configured to
• identify at least one home market for each consumer data entry in the plurality of consumer data entries based on usage patterns of a financial account associated with the account identifier,
• associate, in the consumer database, the identified at least one home market with the corresponding consumer data entry,
• identify, at a predetermined time, a geographic location of a mobile device associated with the mobile device identifier for each consumer data entry,
• store, in the fraud database, a location data point for each identified geographic location if the identified geographic location is outside of a predetermined distance from the at least one home market associated with the corresponding consumer data entry, wherein the location data point includes at least the identified geographic location, the consumer associated with the corresponding consumer data entry, and a time and/or date at which the geographic location was identified, and
• identify at least one fraud factor for detecting fraud in a financial transaction, wherein the at least one fraud factor is based on at least a plurality of financial transactions, the plurality of data points, and each location data point.

A system for identifying fraud factors, comprising:

• a fraud database configured to store a plurality of data points;
• a transaction database configured to store a plurality of financial transactions;
• a consumer database configured to store a plurality of consumer data entries, wherein each consumer data entry is associated with a consumer and includes at least a mobile device identifier and at least one home market;
• a transmitting device configured to transmit the plurality of consumer data entries;
• a receiving device configured to receive a plurality of location data points, wherein each location data point includes a mobile device identifier, a geographic location of a mobile device associated with the mobile device identifier, and a time and/or date at which the mobile device is identified as outside of a predetermined distance from the at least one home market associated with corresponding consumer data entry;
• and
• a processing device configured to identify at least one fraud factor for detecting fraud in a financial transaction, wherein the at least one fraud factor is based on at least the plurality of financial transactions, the plurality of data points, and each location data point.