Blackhawk Network has developed a system to detect and prevent fraudulent transactions by analyzing requests for website access and card transactions. The system dynamically updates risk thresholds and banned lists to catch individual actors and BOTs. It also provides information to financial institutions, merchants, and government agencies. GlobalData’s report on Blackhawk Network gives a 360-degree view of the company including its patenting strategy. Buy the report here.

According to GlobalData’s company profile on Blackhawk Network, Transaction splitting was a key innovation area identified from patents. Blackhawk Network's grant share as of January 2024 was 46%. Grant share is based on the ratio of number of grants to total number of patents.

Fraud detection system for transactions using stored-value cards

Source: United States Patent and Trademark Office (USPTO). Credit: Blackhawk Network Holdings Inc

A recently granted patent (Publication Number: US11887125B2) outlines a system designed to detect fraud by utilizing a combination of memory, processor, and applications. The system is capable of receiving requests related to website viewing or transaction engagement using stored-value cards, associated with artifacts such as profiles, keys, fingerprints, and digital fingerprints. By analyzing risk scores, banned access lists, and artifact associations, the system determines the approval status for using the stored-value card. In cases where fraud risk is high or the party is on a banned list, the system declines the request and initiates an alternate environment transaction involving a dummy website. This process allows for the acquisition of information from the party and updates their profile accordingly, including the risk score.

Furthermore, the system's functionality extends to updating profiles with behavioral and environmental information, determining risk components associated with stored-value cards, and taking actions such as disabling cards, reversing transactions, or adjusting website accessibility based on risk assessments. The system also offers functional benefits to parties with low risk scores, such as service upgrades, discounts, rewards, and access to high-risk products. The alternate environment transaction, which involves no actual goods or services, allows for the collection of information like logins, card numbers, security codes, and biometrics. Overall, the system aims to enhance fraud detection capabilities by dynamically updating risk thresholds, analyzing multiple components of risk, and providing a secure environment for transactions.

To know more about GlobalData’s detailed insights on Blackhawk Network, buy the report here.

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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData Patent Analytics tracks bibliographic data, legal events data, point in time patent ownerships, and backward and forward citations from global patenting offices. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.