System and method for consumer fraud protection

Abstract

The present invention relates to system and method for authorizing a financial transaction using user-data collected from third party websites, such as Social Media Networks. In operation, collected user-data may be compared to a financial-data collected during a financial transaction to identify potential fraud and/or other discrepancies, confirming the identity of the user with a greater degree of accuracy.

1 . A process for authorizing a financial transaction comprising the steps of: receiving transaction-data related to said financial transaction from a financial institution over a communication network;
 receiving user-data from a third-party information source; and   comparing said transaction-data to said user-data to authorize or deny said financial transaction.   
     
     
         2 . The process according to  claim 1 , wherein said user-data is selected from a list of approved merchants, unapproved merchants, shared locations, user behaviors, or calendar events. 
     
     
         3 . The process according to  claim 1 , wherein said third-party information source is a social media network. 
     
     
         4 . The process according to  claim 1 , wherein said financial transaction is associated with a financial account at said financial institution. 
     
     
         5 . The process according to  claim 4 , wherein said financial account is linked to a user account at said third-party information source by a user. 
     
     
         6 . The process according to  claim 1 , wherein said financial institution is authorized to retrieve said user-data prior to authorizing said financial transaction. 
     
     
         7 . The process according to  claim 1 , wherein said financial-data comprises a transaction location, and said financial transaction is authorized if said transaction location is within a predetermined distance of said user-data. 
     
     
         8 . The process according to  claim 1 , wherein said financial-data comprises a merchant name, and said financial transaction is authorized if said merchant name is contained in said user-data. 
     
     
         9 . The process according to  claim 1 , wherein said financial-data comprises a transaction category type, and said financial transaction is authorized if said transaction category type is contained in said user-data. 
     
     
         10 . The process according to  claim 1 , wherein said user-data comprises a list of allowed behavior types, and said financial transaction is authorized if said allowed behavior type matches a behavior category contained in said financial-data. 
     
     
         11 . The process according to  claim 1 , wherein said user-data comprises a list of prohibited behavior types, and said financial transaction is denied if said prohibited behavior type matches a behavior type contained in said financial-data. 
     
     
         12 . The process according to  claim 1 , wherein said user-data comprises a user location and said financial-data comprises a merchant location, and said financial transaction is authorized if said user location is within a predetermined distance of said merchant location. 
     
     
         13 . The process according to  claim 1 , wherein said user-data comprises a transaction type related to a calendar event,
 and wherein said financial transaction is authorized if said transaction type is contained in said financial-data and a date of said financial transaction is within a predetermined date range of a date of said calendar event.   
     
     
         14 . The process according to  claim 1 , wherein said financial-data comprises a transaction merchant name and said user-data comprises a list of blocked merchant names,
 and wherein said financial transaction is denied if said transaction merchant name is contained in said list of blocked merchant names.   
     
     
         15 . The process according to  claim 1 , further comprising the steps of:
 if said financial transaction is denied, using a heuristic module to authorize or deny said financial transaction.   
     
     
         16 . A transaction authentication system for managing financial transactions, said transaction authentication system comprising:
 a data storage device storing a database linking at least one financial account at a financial institution with at least one third-party information source; and   at least one processor, operatively coupled to the data storage device,   wherein, when financial-data related to a financial transaction for the at least one financial account is received at said transaction authentication system, said at least one processor (a) retrieves user-data from said third-party information source and (b) compares said financial-data to said user-data to authorize or deny said financial transaction.   
     
     
         17 . The transaction authentication system according to  claim 16 , wherein said transaction authentication system is facilitated by said financial institution. 
     
     
         18 . The transaction authentication system according to  claim 16 , further comprising:
 a linking module that allows a user to link said at least one financial account to said at least one third-party information source.   
     
     
         19 . The transaction authentication system according to  claim 18 , wherein said linking module further allows a user to link a second financial account to said at least one third-party information source and store said link in said database.