# US 2019/0318359 A1 · Method and system for fraud prevention via blockchain

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- Number: US 2019/0318359 A1
- Document ID: US20190318359A1
- Status: Published application
- Kind: A1
- Application number: 15/955,021
- Filed: 2018-04-17
- Published: 2019-10-17
- Earliest claimed: 2018-04-17
- Assignees: Mastercard International Incorporated
- Applicants: Mastercard International Incorporated
- Inventors: Ankur ARORA
- Web page: https://patentgrep.com/patent/US20190318359A1

## CPC

- G06Q 20/4016: {involving fraud or risk level assessment in transaction processing}
- G06Q 20/02: involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
- G06Q 20/065: {using e-cash}
- G06Q 20/20: Point-of-sale [POS] network systems
- G06Q 20/204: {comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit}
- G06Q 20/4015: {using location information}
- H04L 9/50: {using hash chains, e.g. blockchains or hash trees}
- G06Q 2220/00: Business processing using cryptography
- H04L 2209/56: Financial cryptography, e.g. electronic payment or e-cash
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- H04L: TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION (arrangements common to telegraphic and telephonic communication H04M)

## Abstract

A method for determining fraud for a transaction via blockchain includes: receiving blockchain data for a blockchain including a plurality of blocks, each block being comprised of a block header and data values, each data value corresponding to a declined payment transaction and including an account identifier, timestamp, and point of sale identifier; receiving payment credentials associated with a transaction account, the payment credentials including an account number; identifying one or more data values where the account identifier is the account number; determining a decline of a payment transaction involving the transaction account based on transaction data for the payment transaction and data included in the one or more data values; and transmitting a timestamp, the account number, and a device identifier to a node associated with the blockchain.

## Claims

### Claim 1

A method for determining fraud for a transaction via blockchain, comprising:
receiving, by a receiving device of a point of sale device, blockchain data for a blockchain, wherein the blockchain data is comprised of a plurality of blocks, each block being comprised of at least a block header and one or more data values, each data value corresponding to a declined payment transaction and including at least an account identifier, timestamp, and point of sale identifier;
receiving, by the receiving device of the point of sale device, payment credentials associated with a transaction account, wherein the payment credentials include at least a transaction account number;
executing, by a querying module of the point of sale device, a query on the blockchain data to identify one or more data values where the included account identifier corresponds to the transaction account number;
determining, by a determination module of the point of sale device, a decline of a payment transaction involving the transaction account based on at least transaction data for the payment transaction and data included in the identified one or more data values; and
electronically transmitting, by a transmitting device of the point of sale device, at least a timestamp, the transaction account number, and a device identifier associated with the point of sale device to a node associated with the blockchain.

### Claim 2 (depends on 1)

The method of claim 1, further comprising:
storing, in a memory of the point of sale device, at least the device identifier and the transaction data for the payment transaction.

### Claim 3 (depends on 2)

The method of claim 2, wherein the transaction data for the payment transaction includes at least the timestamp and a transaction amount.

### Claim 4 (depends on 1)

The method of claim 1, wherein
each data value further includes a geographic location associated with the corresponding declined payment transaction,
the decline of the payment transaction is further based on a geographic location associated with the point of sale device, and
the electronic transmission to the node further includes the geographic location associated with the point of sale device.

### Claim 5 (depends on 1)

The method of claim 1, wherein
determining the decline of the payment transaction includes calculating, by the determination module of the point of sale device, a fraud score for the payment transaction based on at least the transaction data for the payment transaction and the data included in the identified one or more data values using at least one fraud algorithm, and
the fraud score exceeds a threshold score.

### Claim 6 (depends on 5)

The method of claim 5, further comprising:
storing, in a memory of the point of sale device, the at least one fraud algorithm and the threshold score.

### Claim 7 (depends on 1)

The method of claim 1, wherein determining the decline of the payment transaction includes:
electronically transmitting, by the transmitting device of the point of sale device, at least the transaction data for the payment transaction and the data included in the identified one or more data values to an external computing system; and
receiving, by the receiving device of the point of sale device, a fraud determination from the external computing system.

### Claim 8 (depends on 7)

The method of claim 7, wherein
the fraud determination is a fraud score for the payment transaction, and
the fraud score exceeds a threshold score.

### Claim 9

A system for determining fraud for a transaction via blockchain, comprising:
a receiving device of a point of sale device configured to
receive blockchain data for a blockchain, wherein the blockchain data is comprised of a plurality of blocks, each block being comprised of at least a block header and one or more data values, each data value corresponding to a declined payment transaction and including at least an account identifier, timestamp, and point of sale identifier, and
receive payment credentials associated with a transaction account, wherein the payment credentials include at least a transaction account number;
a querying module of the point of sale device configured to execute a query on the blockchain data to identify one or more data values where the included account identifier corresponds to the transaction account number;
a determination module of the point of sale device configured to determine a decline of a payment transaction involving the transaction account based on at least transaction data for the payment transaction and data included in the identified one or more data values; and
a transmitting device of the point of sale device configured to electronically transmit at least a timestamp, the transaction account number, and a device identifier associated with the point of sale device to a node associated with the blockchain.

### Claim 10 (depends on 9)

The system of claim 9, further comprising:
a memory of the point of sale device configured to store at least the device identifier and the transaction data for the payment transaction.

### Claim 11 (depends on 10)

The system of claim 10, wherein the transaction data for the payment transaction includes at least the timestamp and a transaction amount.

### Claim 12 (depends on 9)

The system of claim 9, wherein
each data value further includes a geographic location associated with the corresponding declined payment transaction,
the decline of the payment transaction is further based on a geographic location associated with the point of sale device, and
the electronic transmission to the node further includes the geographic location associated with the point of sale device.

### Claim 13 (depends on 9)

The system of claim 9, wherein
determining the decline of the payment transaction includes calculating, by the determination module of the point of sale device, a fraud score for the payment transaction based on at least the transaction data for the payment transaction and the data included in the identified one or more data values using at least one fraud algorithm, and
the fraud score exceeds a threshold score.

### Claim 14 (depends on 13)

The system of claim 13, further comprising:
a memory of the point of sale device configured to store the at least one fraud algorithm and the threshold score.

### Claim 15 (depends on 9)

The system of claim 9, wherein determining the decline of the payment transaction includes:
electronically transmitting, by the transmitting device of the point of sale device, at least the transaction data for the payment transaction and the data included in the identified one or more data values to an external computing system; and
receiving, by the receiving device of the point of sale device, a fraud determination from the external computing system.

### Claim 16 (depends on 15)

The system of claim 15, wherein
the fraud determination is a fraud score for the payment transaction, and
the fraud score exceeds a threshold score.