System and method for detecting fraudulent use of stored value instruments

Abstract

The present invention is generally directed to systems and methods for detecting unauthorized or fraudulent use of stored-value instruments. A stored-value instrument can be any instrument (tangible or intangible) that may be associated with a debit account and/or may otherwise be presented for payment for goods and/or services, used to transfer money, etc. The systems and methods of the invention generally involve processing request activity through a predetermined rule set to ascertain whether the activity is potentially unauthorized or fraudulent. The systems and methods of the invention allow for real-time monitoring of request activity for potentially unauthorized or fraudulent use of stored-value instruments.

1 . A method for detecting potential unauthorized or fraudulent use of a stored value instrument, said method comprising: 
 providing a database comprising a rule set, wherein the rule set comprises at least one of (a) whether a certain number of balance inquiries have been made, (b) whether a certain number of transactions have been performed, and (c) whether a certain number of activation requests have been made;    receiving at least one request related to at least one stored value instrument identifier;    compiling information concerning said request based on the type of request made;    processing said compiled information through said rule set to thereby determine whether there is a likelihood of potential unauthorized or fraudulent use of said at least one stored value instrument based on said rule set; and    setting a flag if potentially unauthorized or fraudulent use of said stored-value instrument is detected in accordance with said rule set.    
     
     
         2 . The method of  claim 1 , wherein said compiled information comprises: stored value instrument identifier, date of request, time of request, request type, mode of request, and optionally geographic location of origin of request, point of service (POS) identifier, automatic number identification (ANI) designation, or internet protocol (IP) address.  
     
     
         3 . The method of  claim 1 , wherein said at least one request is a balance inquiry received via an automated telephone inquiry system, and the compiled information comprises an ANI designation.  
     
     
         4 . The method of  claim 1 , wherein said at least one request is a balance inquiry received via an on-line automated balance inquiry system, and the compiled information comprises IP address information.  
     
     
         5 . The method of  claim 1 , wherein said at least one request is a plurality of transaction attempts of a small increment originating from a small geographic region, and the compiled information comprises geographic location of origination of each respective request.  
     
     
         6 . The method of  claim 1 , wherein said at least one request is a plurality of transaction attempts related to a single stored value instrument identifier at point of service terminals.  
     
     
         7 . The method of  claim 1 , wherein the at least one request is a plurality of requests that relate to a single stored value instrument identifier.  
     
     
         8 . The method of  claim 1 , wherein the at least one request is a plurality of requests that relate to a plurality of stored value instrument identifiers.  
     
     
         9 . The method of  claim 8 , wherein the plurality of stored value instrument identifiers are in sequential order.  
     
     
         10 . The method of  claim 1 , wherein said rule set comprises: 
 (i) no more than a predetermined number of balance inquiries related to a single stored-value instrument identifier during a predetermined period of time;    (ii) no more than a predetermined number of balance inquiries from a single ANI designation or IP address during a predetermined period of time;    (iii) no more than a predetermined number of transactions of a predetermined value in a predetermined geographic locale during a predetermined period of time;    (iv) no more than a predetermined number of transaction requests related to an inactive stored-value instrument identifier;    (v) no more than a predetermined number of transaction requests related to a stored-value instrument identifier associated with a zero balance;    (vi) no more than a predetermined number of transaction requests related to a single stored-value instrument identifier from POS terminals during a predetermined period of time; and    (vii) no more than a predetermined number of activation requests related to a single stored-value instrument identifier.    
     
     
         11 . The method of  claim 1 , wherein said flagging of said at least one stored-value instrument identifier results in deactivation of said stored-value instrument identifier number and any stored-value instruments associated therewith.  
     
     
         12 . The method of  claim 1 , wherein said flagging of said at least one stored-value instrument identifier results in a hold being placed on said stored-value instrument identifier, and any stored-value instruments associated therewith.  
     
     
         13 . The method of  claim 1 , wherein said method further comprising transmitting a message or message code to the point of origination of the at least one request that the stored-value instrument requires verification and/or authorization.  
     
     
         14 . The method of  claim 1 , wherein receiving at least one request comprises a plurality of balance inquiries received from a single source, as identified by ANI or IP address identification, and said method further comprises blocking said source from attempting further balance inquiries.  
     
     
         15 . The method of  claim 1 , wherein said method further comprises flagging a source as identified by ANI or IP address identification for fraud watch or investigation.  
     
     
         16 . A system for detecting potential unauthorized or fraudulent use of a stored-value instrument, said system comprising: 
 means for receiving at least one request related to at least one stored-value instrument identifier number;    means for capturing information concerning said at least one request based on the type of request made;    a database comprising a rule set useful to determine whether there is a likelihood of potential unauthorized or fraudulent use of said at least one stored value instrument based on said rule set, wherein the rule set comprises at least one of (a) whether a certain number of balance inquiries have been made, (b) whether a certain number of transactions have been performed, and (c) whether a certain number of activation requests have been made; and    means for setting a flag if potential unauthorized or fraudulent use of said stored-value instrument is detected in accordance with said rule set.    
     
     
         17 . The system of  claim 16 , wherein said means for receiving at least one request is selected from the group consisting of: an automated telephone balance inquiry system, an on-line balance inquiry system, a POS terminal, or a combination thereof.  
     
     
         18 . The system of  claim 16 , wherein said means for capturing information comprises a means selected from the group consisting of: ANI, IP address capture, and combinations thereof.  
     
     
         19 . The system of  claim 16 , wherein said means for flagging comprises a database comprising said captured information related to said request, and said flag comprises a data flag set in said database if potential unauthorized or fraudulent use of said stored-value instrument is detected in accordance with said rule set.  
     
     
         20 . The system of  claim 16 , wherein said rule set comprises: 
 (i) no more than a predetermined number of balance inquiries related to a single stored-value instrument identifier during a predetermined period of time;    (ii) no more than a predetermined number of balance inquiries from a single ANI designation or IP address during a predetermined period of time;    (iii) no more than a predetermined number of transactions of a predetermined value in a predetermined geographic locale during a predetermined period of time;    (iv) no more than a predetermined number of transaction requests related to an inactive stored-value instrument identifier;    (v) no more than a predetermined number of transaction requests related to a stored-value instrument identifier associated with a zero balance;    (vi) no more than a predetermined number of transaction requests related to a single stored-value instrument identifier from POS terminals during a predetermined period of time; and    (vii) no more than a predetermined number of activation requests related to a single stored-value instrument identifier.    
     
     
         21 . A system for detecting potential unauthorized or fraudulent use of a stored-value instrument, said system comprising: 
 an input that is configured to receive at least one request of a certain request type related to at least one stored-value instrument identifier number;    a database comprising a rule set useful to determine whether there is a likelihood of potential unauthorized or fraudulent use of said at least one stored value instrument based on said rule set, wherein the rule set comprises at least one of (a) whether a certain number of balance inquiries have been made for the stored-value instrument identifier, (b) whether a certain number of transactions have been performed relating to the stored-value identifier, and (c) whether a certain number of activation requests have been made relating to the stored-value identifier; and    a computer processor that is configured to set a flag if potential unauthorized or fraudulent use of said stored-value instrument is detected in accordance with said rule set.