System for detecting target merchants and compromised users corresponding to fraudulent transactions

A fraud detection system, comprising one or more processors and one or more non-transitory computer-readable mediums having processor-executable instructions stored thereon, wherein the processor-executable instructions, when executed by the one or more processors, facilitate:

• obtaining a dataset of transaction data corresponding to a plurality of transactions between a plurality of users and a plurality of merchants, wherein the plurality of transactions of the obtained dataset corresponding to a certain time period, and wherein the transaction data for each transaction of the plurality of transactions comprises at least a merchant ID, a user ID, a timestamp and a category code;
• applying one or more filters to remove transaction data corresponding to certain transactions from the dataset, wherein applying the one or more filters comprises:
• applying a category-based filter to remove transaction data corresponding to transactions having predetermined category codes;
• and
• applying a trust-based filter to remove transaction data corresponding to transactions having certain merchant IDs corresponding to trusted merchants;
• analyzing transaction data corresponding to remaining transactions of the dataset for detecting one or more potential target merchant(s) and/or for detecting one or more potentially comprised user(s), wherein analyzing the transaction data corresponding to the remaining transactions of the dataset to detect one or more potential target merchant(s) and/or to detect one or more potentially comprised user(s) comprises:
• determining, with respect to the remaining transactions of the dataset, for each respective merchant ID, a number of unique user IDs corresponding thereto;
• and/or
• determining, with respect to the remaining transactions of the dataset, for each respective user ID, a number of unique merchant IDs corresponding thereto;
• and
• outputting a detection result indicative of the one or more potential target merchant(s) and/or the one or more potentially comprised user(s), wherein:
• the detection result is indicative of a respective merchant being a potential target merchant based on a merchant ID corresponding to the respective merchant having at least a threshold number of unique user IDs corresponding thereto, the detection result is indicative of a respective user being a potentially compromised user based on the respective user having transacted with any potential target merchant, and/or the detection result is indicative of a respective user being a potentially compromised user based on a user ID corresponding to the respective user having at least a threshold number of unique merchant IDs corresponding thereto.

A fraud detection method, comprising:

• obtaining, by a fraud detection system, a dataset of transaction data corresponding to a plurality of transactions between a plurality of users and a plurality of merchants, wherein the plurality of transactions of the obtained dataset corresponding to a certain time period, and wherein the transaction data for each transaction of the plurality of transactions comprises at least a merchant ID, a user ID, a timestamp and a category code;
• applying, by the fraud detection system, one or more filters to remove transaction data corresponding to certain transactions from the dataset, wherein applying the one or more filters comprises:
• applying a category-based filter to remove transaction data corresponding to transactions having predetermined category codes;
• and
• applying a trust-based filter to remove transaction data corresponding to transactions having certain merchant IDs corresponding to trusted merchants;
• analyzing, by the fraud detection system, transaction data corresponding to remaining transactions of the dataset for detecting one or more potential target merchant(s) and/or for detecting one or more potentially comprised user(s), wherein analyzing the transaction data corresponding to the remaining transactions of the dataset to detect one or more potential target merchant(s) and/or to detect one or more potentially comprised user(s) comprises:
• determining, with respect to the remaining transactions of the dataset, for each respective merchant ID, a number of unique user IDs corresponding thereto;
• and/or
• determining, with respect to the remaining transactions of the dataset, for each respective user ID, a number of unique merchant IDs corresponding thereto;
• and
• outputting, by the fraud detection system, a detection result indicative of the one or more potential target merchant(s) and/or the one or more potentially comprised user(s), wherein:
• the detection result is indicative of a respective merchant being a potential target merchant based on a merchant ID corresponding to the respective merchant having at least a threshold number of unique user IDs corresponding thereto, the detection result is indicative of a respective user being a potentially compromised user based on the respective user having transacted with any potential target merchant, and/or the detection result is indicative of a respective user being a potentially compromised user based on a user ID corresponding to the respective user having at least a threshold number of unique merchant IDs corresponding thereto.