System and method for detecting purchasing card fraud
View Patent ↗A method and system for detecting purchasing card fraud during every aspect of a purchasing card life cycle is disclosed. A central fraud database is created for receiving potential fraud or “high risk” information. The fraudulent information may include, fraudulent customer names, addresses, phone numbers, places of employment, criminal histories, and other personal information. The central fraud database receives information from a variety of sources including but not limited to client fraud files, law enforcement files, and USPS databases. After a contact event has a occurred the fraud database is scanned for a match between the contact event information and the contents of the fraud database. If a fraud match occurs the system sends a fraud alert to the client, including a scorecard. The client is given options to respond to the contact event, such as suspending purchasing card generation.
1. A method for detecting purchasing card fraud during all phases of a purchasing card life cycle, the method comprising:
obtaining contact event information from a client during a purchasing card application process;
comparing the contact event information with fraud information used in known frauds and stored in a database to determine if there is a fraud match between the contact event information and the fraud information; and
sending a fraud alert to the client if there is a fraud match between the contact event information and the fraud information.
2. The method of claim 1 wherein obtaining contact event information further comprises obtaining a customer's name, social security number, and address.
3. The method of claim 1 further comprising receiving the fraud information at the database from a plurality of fraud information sources.
4. The method of claim 1 wherein obtaining contact event information further comprises obtaining contact event information during a purchasing card application process.
5. The method of claim 1 wherein obtaining contact event information further comprises obtaining contact event information during a purchasing card activation process.
6. The method of claim 1 wherein obtaining contact event information further comprises obtaining contact event information during a purchasing card mail order transaction from a retail participant.
7. The method of claim 1 wherein obtaining contact event information further comprises obtaining contact event information during a purchasing card phone order transaction.
8. A method of claim 1 wherein obtaining contact event information further comprises obtaining contact event information during an address change process.
9. The method of claim 1 wherein sending a fraud alert further comprises sending an account record to an online queue to be monitored by the client.
10. The method of claim 9 wherein sending an account record further comprises suspending the contact event until a manual follow-up is completed.
11. The method of claim 1 further comprising scoring the fraud match to assist in the fraud determination process.
12. The method of claim 11 wherein scoring the fraud match further comprises predicting a likelihood of a fraudulent takeover of a cardholder account.
13. The method of claim 1 further comprising suspending purchasing card generation when a fraud match occurs.
14. The method of claim 1 wherein the sending step includes sending the fraud alert in real time.
15. The method of claim 1 wherein the sending step includes sending the fraud alert via batch.
16. A system for detecting purchasing card fraud during all phases of a purchasing card life cycle, the system comprising:
a computer database for receiving contact event information from a client during a purchasing card application process;
computer software in communication with the computer database for comparing the contact event information with fraud information used in known frauds and stored in the database to determine if there is a fraud match between the contact event information and the fraud information; and
a communication network in communication with the database for sending a fraud alert to the client if there is a fraud match between the contact event information and the fraud information.
17. The system of claim 16 wherein the contact event information comprises a customer's name, social security number, and address.
18. The system of claim 16 wherein the fraud database is adapted to communicate with a plurality of fraud information sources.
19. The system of claim 16 wherein the computer database receives the contact event information during a purchasing card application process.
20. The system of claim 16 wherein the computer database receives the contact event information during a purchasing card activation process.
21. The system of claim 16 wherein the computer database receives the contact event information during a purchasing card mail order transaction from a retail participant.
22. The system of claim 16 wherein the computer database receives the contact event information during a purchasing card phone order transaction.
23. The system of claim 16 wherein the computer database receives the contact event information during an address change process.
24. The system of claim 16 wherein the fraud alert includes an account record which is sent to an online queue monitored by the client.
25. The system of claim 16 wherein the computer software is operative to score the fraud match to assist in the fraud determination process.
26. The system of claim 16 wherein the computer software and the communication network are operative to send the fraud alert in real time.
27. The system of claim 16 wherein the computer software and the communication network are operative to send the fraud alert via batch.