METHOD AND APPARATUS FOR EVALUATING FRAUD RISK IN AN ELECTRONIC COMMERCE TRANSACTION

摘要

A method and system for evaluating fraud risk in an electronic commerce transaction between consumer and a merchant over a network is disclosed. An e- commerce transaction or electronic purchase order is received, the level of risk associated with each order is measured, and a risk score is returned (560). Data validation, highly predictive artificial intelligence pattern matching (520), network data aggregation and negative file checks are used t o examine numerous factors to calculate fraud risk. Other analysis includes a comparative comparison of the current transaction against past known fraudulent transactions, and a search of a transaction history database to identify abnormal velocity patterns, name and address changes, and known defrauders. In one alternative, scoring algorithms are regularly refined through the use of a closed-loop risk modeling process that enables the service provided by the system to be fine-tuned to adapt to new or changing fraud patterns.