| System and method for detecting fraudulent use of stored value instruments -> Monitor Keywords |
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System and method for detecting fraudulent use of stored value instrumentsRelated Patent Categories: Data Processing: Financial, Business Practice, Management, Or Cost/price Determination, Automated Electrical Financial Or Business Practice Or Management Arrangement, Including Point Of Sale Terminal Or Electronic Cash Register, Having Security Or User Identification Provision (password Entry, Etc.)System and method for detecting fraudulent use of stored value instruments description/claimsThe Patent Description & Claims data below is from USPTO Patent Application 20080091545, System and method for detecting fraudulent use of stored value instruments. Brief Patent Description - Full Patent Description - Patent Application Claims
BACKGROUND OF THE INVENTION [0001] This application relates generally to stored-value instruments. More specifically, this application relates to methods and systems for detecting fraudulent use of stored value cards. [0002] Stored value, gift, or other pre-paid metered accounts associated with debits cards are well-known for providing access to goods and services. For example, gift cards may be purchased from various merchants such as Target.RTM., Wal-Mart.RTM., Starbucks.RTM., Sears.RTM., Blockbuster.RTM., and the like. Pre-paid debit cards are also frequently purchased for telephone services. The purchase and usage of pre-paid debit cards has continued to increase in recent years to the point that the sale of pre-paid debit cards today is a multi-billion dollar industry. Pre-paid cards, such as gift cards issued by a merchant, are advantageous to the merchant because customers using them are more likely to shop the merchant and also more likely to spend beyond the initial value of the gift card. Other prepaid cards may be issued by a bank or money transfer office, and may be used like a credit card to make purchases, up to the balance maintained within the card account. [0003] In some cases, pre-paid debit cards are printed and issued with a predetermined value and balance, and typically sold as a retail item. An example of one such a card is a pre-paid gift card which provides an individual with a set dollar amount for the purchase of goods from a particular merchant. In other cases, a gift card may be printed without a predetermined value, but when it is purchased and activated the customer pays for the amount of money to be "loaded" onto the card. [0004] Clearinghouse arrangements have been set up to handle gift card accounts on behalf of merchants. For example, ValueLink, L.L.C., a unit of First Data Corporation, provides database services that merchants may access for activating and maintaining gift card accounts. When the card is purchased, the card is electronically read (e.g., by reading a magnetic stripe and/or printed bar code on the card) by the merchant to activate the account at the database. Once activated, the card is used to make purchases (redemptions) by reading the card at the time of purchase and debiting the purchase amount from the account. [0005] In recent years, stored-value cards have become increasingly popular among consumers. The steadily increasing demand for such cards, in the form of prepaid gift cards and other types of stored-value cards, has resulted in an increased number of merchants offering stored-value cards for sale. This success in marketing stored-value cards has, however, spawned a variety of fraudulent practices related to these cards. [0006] There is, accordingly, a general need in the art for methods and systems to provide detection of unauthorized or fraudulent uses of such stored-value instruments. BRIEF SUMMARY OF THE INVENTION [0007] To address these and other needs, the present invention provides systems and methods for detecting the unauthorized or fraudulent use of stored-value instruments. [0008] Thus, in one aspect of the invention, a method for detecting potential unauthorized or fraudulent use of a stored value instrument is provided. Methods of the invention generally comprise: receiving at least one request related to at least one stored value instrument identifier; compiling predetermined information concerning the request based on the type of request made; processing the compiled information through a predetermined rule set to thereby determine whether there is a likelihood of potential unauthorized or fraudulent use of the at least one stored value instrument based on the predetermined rule set; and setting a flag if potentially unauthorized or fraudulent use of a stored-value instrument is detected in accordance with the predetermined rule set. In certain embodiments, the flagging may result in a hold being placed on the stored-value instrument identifier or deactivation of the stored-value identifier. In other embodiments, the flag may result in the source of the request being blocked from making further requests. [0009] In one embodiment, the rule set may comprise: (i) no more than a predetermined, selectable number of balance inquiries related to a single stored-value instrument identifier during a predetermined, selectable period of time; (ii) no more than a predetermined, selectable number of balance inquiries from a single ANI designation or IP address during a predetermined, selectable period of time; (iii) no more than a predetermined, selectable number of transactions of a predetermined, selectable value in a predetermined, selectable geographic locale during a predetermined, selectable period of time; (iv) no more than a predetermined, selectable number of transaction requests related to an inactive stored-value instrument identifier; (v) no more than a predetermined, selectable number of transaction requests related to a stored-value instrument identifier associated with a zero balance; (vi) no more than a predetermined, selectable number of transaction requests related to a single stored-value instrument identifier from POS terminals during a predetermined, selectable period of time; and (vii) no more than a predetermined, selectable number of activation requests related to a single stored-value instrument identifier. [0010] In another aspect of the invention, a system for detecting potential unauthorized or fraudulent use of a stored-value instrument is provided. Systems of the invention generally comprise: means for receiving at least one request related to at least one stored-value instrument identifier number; means for capturing predetermined information concerning the at least one request based on the type of request made; a database comprising a predetermined rule set useful to determine whether there is a likelihood of potential unauthorized or fraudulent use of the at least one stored value instrument based on the predetermined rule set; and means for setting a flag if potential unauthorized or fraudulent use of the stored-value instrument is detected in accordance with the predetermined rule set. [0011] In one embodiment, the means for receiving at least one request may be an automated telephone balance inquiry system, an on-line balance inquiry system, a POS terminal, or a combination thereof. In another embodiment, the means for capturing information may comprise ANI, IP address capture, and combinations thereof. In yet another embodiment, the means for flagging may comprise a database comprising the captured information related to the request, and the flag may comprise a data flag set in the database if potential unauthorized or fraudulent use of a stored-value instrument is detected in accordance with the predetermined rule set. [0012] These and other aspects will become apparent to one of skill in the art upon reading the disclosure. BRIEF DESCRIPTION OF THE DRAWINGS [0013] FIG. 1A illustrates a typical point-of-service (POS) type system for use in connection with the present invention. [0014] FIG. 1B illustrates an exemplary system in accordance with the present invention. [0015] FIG. 2 illustrates an exemplary method in accordance with the present invention. [0016] FIG. 3 illustrates an exemplary instrument-authority system of the invention. DETAILED DESCRIPTION OF THE INVENTION [0017] 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. Particular embodiments of stored-value instruments comprise stored-value cards, which may have a form factor similar to that of credit cards, etc. By way of non-limiting example, stored-value instruments, such as cards may be packaged in a manner described in detail in U.S. patent application Ser. No. 10/665,984, filed Sep. 19, 2003 by McGee et al. and entitled "Financial Presentation Instruments with Integrated Holder and Methods for Use," the entire disclosure of which is incorporated herein by reference. [0018] A stored-value instrument will generally comprise some form of identifier, which may be sufficient to uniquely identify the stored-value instrument. Merely by way of example, a stored-value instrument may comprise a magnetic stripe and/or a bar code. The stored-value identifier, which might be a serial number and/or other string of text and/or numbers, then, might be encoded onto the magnetic stripe and/or represented by the bar code. Those skilled in the art will appreciate the variety of methods that can be used to encode/decode a magnetic stripe and/or translate a bar code. Further, those skilled in the art will appreciate that there are a number of ways known in the art to store information associated with a stored value instrument, and any of them may be used as appropriate to store the first and/or second identifiers. Merely by way of example, in some embodiments, the first and/or second identifier may be stored in various ways (such as RFID tag or chips embedded in the card, holograms, etc.) and/or any appropriate scanner, RFID reader and/or hardware may be used to obtain and/or input the first and/or second identifier. Bar codes, track data, account information, etc. may also be printed on the card, as known in the art. [0019] In some cases, the stored-value instrument may comprise both a magnetic stripe and a bar code. The magnetic stripe may be used to store a first identifier (such as an account number associated with the instrument and/or the like), which may also be printed, embossed, etc. on the instrument. The bar code may represent a second identifier, which may have some relation to the first identifier, or may incorporate a personal account number, a personal identification number, etc. Merely by way of example, in some cases, the bar code may be a Code 128 bar code known in the art. As recognized by those skilled in the art, the identifier may also be encrypted. The encrypted value representing the identifier can be derived using any appropriate technique, of which many are known in the art. An exemplary technique may comprise 3DES encryption. As used herein, a stored-value instrument identifier can be any single identifier or combination of identifiers, such as a first identifier, second identifier, etc., or any combination thereof. [0020] Merely by way of example, an overview of a typical point-of-sale (POS) system that may be used to activate or perform certain transaction requests utilizing stored-value instruments is illustrated schematically in FIG. 1A. Other systems are described in U.S. patent application Ser. No. 10/405,043, filed Sep. 26, 2003 by McGee et al. and entitled "Methods and Systems for Processing Unrestricted Stored-Value Instruments," the entire disclosure of which is incorporated herein by reference. However, the invention is not so limited, and any known systems may be used in connection with the present invention, as understood by those skilled in the art. Continue reading about System and method for detecting fraudulent use of stored value instruments... Full patent description for System and method for detecting fraudulent use of stored value instruments Brief Patent Description - Full Patent Description - Patent Application Claims Click on the above for other options relating to this System and method for detecting fraudulent use of stored value instruments patent application. ###  How KEYWORD MONITOR works... a FREE service from FreshPatents1. Sign up (takes 30 seconds). 2. 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