US 7,433,855 B2 · System and method for detecting and managing fraud

Abstract

A system, method and computer program product for processing event records. The present invention includes a detection layer, an analysis layer, an expert systems layer and a presentation layer. The layered system includes a core infrastructure and a configurable, domain-specific implementation. The detection layer employs one or more detection engines, such as, for example, a rules-based thresholding engine and a profiling engine. The detection layer can include an AI-based pattern recognition engine for analyzing data records, for detecting new and interesting patterns and for updating the detection engines to insure that the detection engines can detect the new patterns. In one embodiment, the present invention is implemented as a telecommunications fraud detection system. When fraud is detected, the detection layer generates alarms which are sent to the analysis layer. The analysis layer filters and consolidates the alarms to generate fraud cases. The analysis layer preferably generates a probability of fraud for each fraud case. The expert systems layer receives fraud cases and automatically initiates actions for certain fraud cases. The presentation layer also receives fraud cases for presentation to human analysts. The presentation layer permits the human analysts to initiate additional actions.

Claims62

Dependent claims

A method for detecting fraud in one of a credit card or debit card system, the system generating network event records, each network event record being generated in response to an event in the system, the method comprising:

performing, via one or more servers, at least a first fraud detection test and a second different fraud detection test on the network event records, the first fraud detection test and the second fraud detection test being performed based on fraud detection rules, the fraud detection rules being dynamically reconfigured in accordance with changing patterns of fraud;
generating a first fraud alarm upon detection of suspected fraud by the first fraud detection test;
generating a second different fraud alarm upon detection of suspected fraud by the second different fraud detection test;
correlating the generated first fraud alarm with the generated second different fraud alarm based on common aspects of the first fraud alarm and the second different fraud alarm, the correlated fraud alarms being consolidated into a fraud case, the fraud case being assigned a priority based on a severity of the suspected fraud;
and
responding to the fraud case with a fraud prevention action, the fraud prevention action being based on the priority assigned to the fraud case.

3 more elements

Dependencies are inferred from the claim text.

System and method for detecting and managing fraud

Life of this patent

System and method for detecting and managing fraud

Life of this patent

Abstract

Claims62