Method of processing online payments with fraud analysis and management system

Abstract

Systems and methods are disclosed to detect fraud by displaying on a buyer's computer a high value item next to one or more commonly purchased items to attract a fraudster; analyzing customer purchasing behavior on the high value item for an indication of fraud; and indicating fraud if the buyer buys the high value item without prior history.

What is claimed is: 
     
         1 . A method to detect fraud in electronic payments, comprising
 collecting information on payer activities on a web page including browser parameters of the payer, payer device parameter, and payer behavorial activities on the web page;   indexing customer parameter information and activity information collected to form an index database; and   applying one or more rule sets to the index database to allow, hold, or deny a transaction.   
     
     
         2 . The method of  claim 1 , comprising collecting payment information and checking the payment information against an address verification system (AVS) to detect fraud. 
     
     
         3 . The method of  claim 1 , comprising determining fraud based on one of: customer behavioral information, bank identification number, geographic location, domain lookup, proxy list, virtual private networking list, local computer settings. 
     
     
         4 . The method of  claim 3 , comprising analyzing page browsing behavior including each page viewed and time spent on each page. 
     
     
         5 . The method of  claim 3 , comprising determining fraud by observing customer reaction to a credit card authorization failure. 
     
     
         6 . The method of  claim 3 , comprising determining fraud by analyzing customer reaction to one of: a promotion, a give-away, a test credit, a gift. 
     
     
         7 . The method of  claim 1 , comprising determining fraud by checking if two separate accounts share the same password. 
     
     
         8 . The method of  claim 7 , wherein the password is a strong password. 
     
     
         9 . The method of  claim 1 , comprising collecting unique identification for a component of a client computer used to purchase items on line. 
     
     
         10 . The method of  claim 9 , comprising collecting the unique identification using a client software. 
     
     
         11 . The method of  claim 1 , comprising determining fraud based on administrative information associated with a customer account. 
     
     
         12 . The method of  claim 1 , comprising capturing a unique Internet Protocol (IP) address from a client computer and comparing the IP to the IP used to browse the merchant's website to detect fraud. 
     
     
         13 . The method of  claim 1 , comprising detecting fraud by checking IP address nationality. 
     
     
         14 . The method of  claim 1 , comprising
 a. collecting payment information and checking the payment information against an address verification system (AVS) to detect fraud;   b. determining fraud based on customer behavioral information;   c. determining fraud by checking if two separate accounts share the same password;   d. collecting unique identification for a component of a client computer used to purchase items on line;   e. determining fraud based on administrative information associated with a customer account; and   f. capturing a unique Internet Protocol (IP) address from a client computer and using the unique IP address to detect fraud.   
     
     
         15 . A system to detect fraud, comprising:
 a. a transactional database to capture customer purchasing behavior;   b. a fraud ranking engine coupled to the transactional database to generate a fraud likelihood assessment, where in the fraud ranking engine assigns a unique customer identification by indexing and analyzing browser parameters and/or collected device parameters;   c. means for ranking each unique customer identification by analyzing browser parameters and/or collected device parameters; and   d. means to allow, hold, or deny payments based on the ranking of the customer who makes a payment.   
     
     
         16 . The system of  claim 15 , comprising an administrative panel coupled to the fraud ranking engine to control a customer account. 
     
     
         17 . The system of  claim 15 , comprising a channelized transaction pool coupled to the rule engine. 
     
     
         18 . The system of  claim 17 , comprising an action control engine coupled to the channelized transaction pool. 
     
     
         19 . The system of  claim 18 , wherein the fraud ranking engine checks one of: bank identification number, geographic location, domain lookup, proxy list, virtual private networking list, local computer settings, payment information for an address verification system (AVS), customer behavioral information, password sharing between two accounts, unique identification for a hardware component of a client computer used to purchase items on line, administrative information associated with a customer account; and Internet Protocol (IP) address. 
     
     
         20 . The system of  claim 19 , comprising a payment gateway coupled to the online shopping cart.