System and method for identifying a point of compromise in a payment transaction processing system

1. An apparatus for reducing fraud in a payment transaction system, the apparatus comprising:

an electronic processor programmed to execute a set of instructions; and

a data storage device coupled to the electronic processor and having the set of instructions stored therein, wherein when the set of instructions are executed by the programmed electronic processor, the apparatus:

determines a point of compromise measure for each of one or more entities involved in accessing or processing payment transaction data;

determines a payment transaction measure for a payment transaction, the payment transaction measure obtained by combining the point of compromise measure for each of those of the entities involved in accessing or processing data for the payment transaction;

determines a payment account measure for a payment account, wherein the payment account measure is obtained by combining the payment transaction measures for each of a plurality of payment transactions conducted using the payment account;

evaluates the payment account measure to determine if it satisfies a predetermined condition indicating that the account is at-risk for fraud in the future, wherein evaluating the payment account measure to determine if it satisfies the predetermined condition comprises one or more of:

determining if the payment account measure exceeds a threshold value;

determining if the payment account measure exceeds a specified value for a specified amount of time; or

determining if a ratio of the payment account measure for a first time period and the payment account measure for a second time period exceeds a specified value; and

generates a notification or alters the operation of the account if the payment account measure satisfies the predetermined condition.

2. The apparatus of claim 1 , wherein the apparatus determines the point of compromise measure for each of the one or more entities by:

accessing a set of input data;

receiving a selection of an indicator to be obtained from the input data; and

determining a value of the point of compromise measure from the indicator.

3. The apparatus of claim 2 , wherein the indicator is one of

a subsequent fraud rate or number of fraud events for an entity after a set of accounts engaged in a transaction with that entity or transactions were processed by that entity;

an accumulated time-to-fraud for an entity;

a presence of testing activity; or

an elevation of transaction authorization scores.

4. The apparatus of claim 2 , wherein the apparatus determines a value of the measure from the indicator by applying a statistical model to the indicator.

5. The apparatus of claim 1 , wherein the one or more entities includes one or more of a merchant, an issuer, a point of sale terminal, an acquirer, or a data processor for an acquirer.

6. The apparatus of claim 1 , wherein the apparatus generates a notification or alters the operation of the account by:

generating a notification to an issuer that the account may be at-risk;

generating a notification to an account owner that the account may be at-risk;

blocking use of the account to prevent using the account to conduct a payment transaction; or

placing conditions on the type of transactions that may be conducted using the account.

7. A method of reducing fraud in a payment transaction system, the method comprising:

determining, by a computer processor, a point of compromise measure for each of one or more entities involved in accessing or processing payment transaction data;

determining a payment transaction measure for a payment transaction, the payment transaction measure obtained by combining the point of compromise measure for each of those of the entities involved in accessing or processing data for the payment transaction;

determining a payment account measure for a payment account, wherein the payment account measure is obtained by combining the payment transaction measures for each of a plurality of payment transactions conducted using the payment account;

evaluating the payment account measure to determine if it satisfies a predetermined condition indicating that the account is at-risk for fraud in the future, wherein evaluating the payment account measure to determine if it satisfies the predetermined condition comprises one or more of:

determining if the payment account measure exceeds a threshold value;

determining if the payment account measure exceeds a specified value for a specified amount of time; or

determining if a ratio of the payment account measure for a first time period and the payment account measure for a second time period exceeds a specified value; and

generating a notification or altering the operation of the account if the payment account measure satisfies the predetermined condition.

8. The method of claim 7 , wherein determining the point of compromise measure for each of the plurality of entities further comprises:

selecting a set of input data;

selecting an indicator to be obtained from the input data; and

determining a value of the point of compromise measure from the indicator.

9. The method of claim 8 , wherein the indicator is one of:

a subsequent fraud rate or number of fraud events for an entity after a set of accounts engaged in a transaction with that entity or transactions were processed by that entity;

an accumulated time-to-fraud for an entity;

a presence of testing activity; or

an elevation of transaction authorization scores.

10. The method of claim 8 , wherein determining a value of the measure from the indicator further comprises applying a statistical model to the indicator.

11. The method of claim 7 , wherein the one or more entities includes one or more of a merchant, an issuer, a point of sale terminal, an acquirer, or a data processor for an acquirer.

12. The method of claim 7 , wherein generating a notification or altering the operation of the account further comprises one or more of:

generating a notification to an issuer that the account may be at-risk;

generating a notification to an account owner that the account may be at-risk;

blocking use of the account to prevent using the account to conduct a payment transaction; or

placing conditions on the type of transactions that may be conducted using the account.

13. The method of claim 7 , wherein the point of compromise measure for the entity provides an indication of whether the entity involved in accessing or processing payment transaction data is likely to be a compromised entity at which a breach of security occurs resulting in an unauthorized release of data.

14. A method of identifying a point of compromise in a payment transaction processing system, the method comprising:

selecting, by a computer processor, a set of input data including transaction data of a payment account associated with an entity;

selecting an indicator to be obtained from processing the set of input data;

determining the indicator for the entity, wherein determining the indicator includes determining a payment account measure for the payment account, the payment account measure determined based on one or more payment transactions conducted using the payment account:

determining a point of compromise measure for the entity based on the indicator;

evaluating if the point of compromise measure satisfies a predetermined condition, wherein evaluating if the point of compromise measure satisfies the predetermined condition comprises one or more of:

determining if the point of compromise measure exceeds a threshold value;

determining if the point of compromise measure exceeds a specified value for a specified amount of time; or

determining if a ratio of the point of compromise measure for a first time period and the point of compromise measure for a second time period exceeds a specified value; and

identifying the entity as a point of compromise if the point of compromise measure satisfies the predetermined condition.

15. The method of claim 14 , wherein the indicator is one of:

a subsequent fraud rate or number of fraud events for an entity after a set of accounts engaged in a transaction with that entity or transactions were processed by that entity;

an accumulated time-to-fraud for an entity;

a presence of testing activity; or

an elevation of transaction authorization scores.

16. The method of claim 14 , wherein determining the point of compromise measure based on the indicator comprises applying a statistical model to the indicator.

17. The method of claim 14 , wherein the entity is a merchant, an issuer, a point of sale terminal, an acquirer, or a data processor for an acquirer.

18. The method of claim 14 , further comprising generating a notification if the point of compromise measure for the entity satisfies the predetermined condition.

19. The method of claim 14 , further comprising processing the selected indicator to increase a signal-to-noise ratio prior to determining the point of compromise measure for the entity from the indicator.

20. A system comprising:

one or more processors; and

a memory device coupled to the one or more processors, the memory device including a set of instructions to be executed, wherein the set of instructions, when executed by the one or more processors, causes the one or more processors to:

receive a set of input data;

identify an indicator to be obtained from processing the set of input data;

determine the indicator for an entity, wherein determining the indicator includes determining a payment account measure for a payment account associated with the entity, the payment account measure determined based on one or more payment transactions conducted using the payment account;

determine a point of compromise measure for the entity from the indicator;

evaluate if the point of compromise measure satisfies a predetermined condition, wherein evaluating if the point of compromise measure satisfies the predetermined condition comprises one or more of:

determining if the point of compromise measure exceeds a threshold value;

determining if the point of compromise measure exceeds a specified value for a specified amount of time; or

determining if a ratio of the point of compromise measure for a first time period and the point of compromise measure for a second time period exceeds a specified value; and

identify the entity as a point of compromise if the point of compromise measure satisfies the predetermined condition.

21. The system of claim 20 , wherein the indicator is one of:

a subsequent fraud rate or number of fraud events for an entity after a set of accounts engaged in a transaction with that entity or transactions were processed by that entity;

an accumulated time-to-fraud for an entity;

a presence of testing activity; or

an elevation of transaction authorization scores.

22. The system of claim 20 , wherein the set of instructions that causes the one or more processors to determine a point of compromise measure from the indicator further causes the one or more processors to apply a statistical model to the indicator.

23. The system of claim 20 , wherein the entity is a merchant, an issuer, a point of sale terminal, an acquirer, or a data processor for an acquirer.

24. The system of claim 20 , wherein the set of instructions further causes the one or more processors to generate a notification if the point of compromise measure for the entity satisfies the predetermined condition.

25. The system of claim 20 , wherein the set of instructions further causes the one or more processors to process the indicator to increase a signal-to-noise ratio prior to determining the point of compromise measure for the entity from the indicator.