Confidential fraud detection system and method

Abstract

Various embodiments for maintaining security and confidentiality of data and operations within a fraud detection system. Each of these embodiments utilizes a secure architecture in which: (1) access to data is limited to only approved or authorized entities; (2) confidential details in received data can be readily identified and concealed; and (3) confidential details that have become non-confidential can be identified and exposed.

1 . A confederated fraud detection system, comprising:
 an interface for inputting transaction data; and   a tamper-resistant data processing unit (SPDU), wherein the SPDU includes:
 a security system that can restrict access to data and program execution; 
 a consolidated database for storing encrypted data from a plurality of members; 
 a consolidation system for securely importing encrypted data from each of the plurality of members; and 
 at least one computer configured to make a determination regarding a probability that inputted transaction data are fraudulent; and 
 a selection program for selecting at each of a sequence of random times a different surveillance algorithm to be used by the analysis system. 
   
     
     
         2 . The confederated fraud detection system of  claim 1 , further comprising a set of data access rules that determines access criteria to data stored in the consolidated database. 
     
     
         3 . The confederated fraud detection system of  claim 1 , further comprising a secure data communication channel through which data traffic can remain secret. 
     
     
         4 . The confederated fraud detection system of  claim 1 , further comprising an encryption system for decrypting imported data, wherein the encryption system includes a system for protecting encryption keys. 
     
     
         5 . A method for implementing a fraud detection service, comprising:
 providing a member based fraud detection service;   securely transferring data to a confederated fraud detection system from a member such that the data is maintained as confidential wherein the data includes inputted transactions;   storing the data in an encrypted form in a consolidated database along with data from other members;   using the data in the consolidated database to facilitate fraud detection; and   performing fraud detection through a plurality of surveillance algorithms stored in an encrypted database by;
 analyzing inputted transactions for fraud with a surveillance algorithm; and 
 selecting a different surveillance algorithm from the plurality of surveillance algorithms for analyzing future inputted transactions. 
   
     
     
         6 . The method of  claim 5 , wherein the data is transferred to the fraud detection service in an encrypted form. 
     
     
         7 . The method of  claim 5 , wherein the data transferred to the fraud detection service is decrypted by the fraud detection service, verified for accuracy, and approved for storage. 
     
     
         8 . The method of  claim 5 , further comprising providing a data processing service to the members, wherein the service includes:
 providing data consolidation services;   providing model construction services; and   providing transaction analysis services.   
     
     
         9 . The method of  claim 5 , further comprising random data to be received by the fraud detection service in order to ensure that secrecy is not lost to a third party observing traffic to the fraud detection service. 
     
     
         10 . The method of  claim 5 , wherein the fraud detection service includes a system for reconstructing activity networks among participating members to identify suspicious patterns. 
     
     
         11 . The method of  claim 5 , wherein the fraud detection service includes audit capabilities for replicating analysis activities performed by the fraud detection service. 
     
     
         12 . A distributed fraud detection apparatus, comprising:
 a plurality of tamper-resistant secure data processing units (SDPU) distributed among a set of members, wherein each SDPU includes:   a secure database for storing member data including at least one computer for;   analyzing inputted transactions;   determining a probability that inputted transactions are fraudulent using a plurality of surveillance algorithms stored in an encrypted database; and   selecting at each of a sequence of random times a different surveillance algorithm to be used by the analysis system.   
     
     
         13 . The distributed fraud detection apparatus of  claim 12 , wherein the secure database includes an algorithm performance system that assists the selection program in selecting surveillance algorithms. 
     
     
         15 . The fraud detection apparatus of  claim 12 , wherein the selecting includes a random selection program for selecting surveillance algorithms. 
     
     
         16 . The fraud detection apparatus of  claim 12 , further comprising an encryption program for encrypting and decrypting data.