US Patent 11954688 Apparatus for fraud detection rule optimization

An improved method and apparatus for determining if a financial transaction is fraudulent is described. The apparatus in one embodiment collects transactions off of a rail using promiscuous listening techniques. The method uses linear programming algorithms to tune the rules used for making the determination. The tuning first simulates using historical data and then creates a matrix of the rules that are processed through the linear programming algorithm to solve for the variables in the rules. With the updated rules, a second simulation is performed to view the improvement in the performance. The updated rules are then used to evaluate the transactions for fraud.