US Patent 8117097 Method and system for identifying fraudulent account activity

A method and system is provided that evaluates several pieces of information associated with bank accounts at the time they are opened in order to assess the level of fraud risk that the new account creates for the bank. When a new customer establishes an account the various information collected during the account establishment process is analyzed using a logic algorithm that makes a risk assessment. The logic algorithm assigns a risk level wherein the highest risk accounts may be refused immediately while the next highest risk tier is flagged for further monitoring. Once flagged for monitoring, the account is subject to increased scrutiny based on various customer attributes to identify any problematic patterns. If all transactions are normal, the scrutiny flag lapses. If risky transactions continue, a hold is placed on the account and additional investigation is undertaken to either clear or close the account.