POS-originated transaction traces as a source of contextual information for risk management systems in EFT transactions

Abstract

Transaction traces analysis is a key utility for marketing, trend monitoring, and fraud detection purposes. However, they can also be used for designing and verification of contextual risk management systems for card-present transactions. In this paper, we presented a novel approach to collect detailed transaction traces directly from payment terminal. Thanks to that, it is possible to analyze each transaction step precisely, including its frequency and timing. We also demonstrated our approach to analyze such data based on real-life experiment. Finally, we concluded this paper with important findings for designers of such a system.