Cryptocurrency risk detection system

Patent metadata

Field	Value
Publication number	US-10275772-B2
Application number	US-201414305916-A
Country	US
Kind code	B2
Filing date	Jun 16, 2014
Priority date	Jun 16, 2014
Publication date	Apr 30, 2019
Grant date	Apr 30, 2019

Abstract

The system includes a processor operable to receive a request from a customer to perform a cryptocurrency transaction with a third party. The processor may also retrieve block chain information associated with the cryptocurrency transaction. The processor may also determine the amount of cryptocurrency associated with the cryptocurrency transaction. The processor may further calculate a risk score for performing the cryptocurrency transaction based at least in part upon the block chain information and the amount of cryptocurrency.

First claim

What is claimed is:

1. A cryptocurrency risk detection system, comprising one or more processors operable to:
receive a request from a customer account to perform a cryptocurrency transaction with a third party, the customer account being associated with a customer public key;
retrieve block chain information associated with the cryptocurrency transaction;
identify at least one block chain factor based on the block chain information;
determine that at least one block chain factor includes an age of a cryptocurrency associated with the cryptocurrency transaction;
calculate a factor score for the age of the cryptocurrency;
determine that at least one block chain factor includes a third party public key;
in response to determining that the at least one block chain factor includes the third party public key:
review a transaction history associated with the third party public key;
calculate a factor score for the third party based on the transaction history;
determine that there is at least one additional public key in a same wallet as the third party public key;
in response to determining that that there is at least one additional public key in the same wallet as the third party public key:
review a transaction history associated with the at least one additional public key in the same wallet as the third party public key;
update the factor score for the third party based on the transaction history associated with the at least one additional public key in the same wallet as the third party public key;

determine the amount of cryptocurrency associated with the cryptocurrency transaction;
calculate a risk score for performing the cryptocurrency transaction based at least in part upon the factor score for the third party and the amount of cryptocurrency;
determine, based on the risk score, that the cryptocurrency transaction is approved;
select a hash function from a plurality of hash functions based on the geographic location of a data center server where a token representing the customer public key may be stored;
apply the hash function to generate the token representing the customer public key;
store the token in the data center server;
encode the token representing the customer public key onto a payment instrument to conduct the cryptocurrency transaction;
electronically link the customer account to the payment instrument by encoding the token; and
execute the cryptocurrency transaction using the payment instrument.

2. The system of claim 1 , the one or more processors further operable to:
determine whether the transaction is approved based at least in part upon the risk score; and
communicate to the customer and the third party whether the transaction is approved.

3. The system of claim 1 , the one or more processors further operable to:
determine whether the risk score indicates suspicious activity by the third party; and
communicate a notification to the customer that the risk score indicates suspicious activity by the third party.

4. The system of claim 1 , wherein calculating a risk score comprises:
identifying at least one additional block chain factor based at least in part upon the block chain information;
determining a factor score for the at least one additional block chain factor; and
wherein the risk score is based further at least in part upon the factor score for the at least one additional block chain factor.

5. The system of claim 4 , wherein the at least one additional block chain factor comprise at least one of a customer IP address, a third party IP address, a customer public key, an age of the customer public key, an age of the third party public key, and an age of the cryptocurrency.

6. The system of claim 4 , the one or more processors further operable to: determine whether the at least one block chain factor includes a customer IP address:
in response to determining whether the at least one block chain factor includes a customer IP address:
determine a location associated with the customer IP address; and

calculate a factor score for the customer IP address based at least in part upon the location associated with the customer IP address;
determine whether the at least one block chain factor includes a third party) IP address;
in response to determining whether the at least one block chain factor includes a third party IP address:
determine a location associated with the third party IP address; and

calculate a factor score for the third party IP address based at least in part upon the location associated with the third party IP address.

7. A cryptocurrency risk detection engine comprising instructions stored in a memory, the instructions, when executed by a processor, operable to cause the risk detection engine to:
receive a request from a customer account to perform a cryptocurrency transaction with a third party, the customer account being associated with a customer public key;
retrieve block chain information associated with the cryptocurrency transaction;
identify at least one block chain factor based on the block chain information;
determine that at least one block chain factor includes an age of a cryptocurrency associated with the cryptocurrency transaction;
calculate a factor score for the age of the cryptocurrency;
determine that at least one block chain factor includes a third party public key;
in response to determining that the at least one block chain factor includes the third party public key:
review a transaction history associated with the third party public key;
calculate a factor score for the third party based on the transaction history;
determine that there is at least one additional public key in a same wallet as the third party public key;
in response to determining that that there is at least one additional public key in the same wallet as the third party public key:
review a transaction history associated with the at least one additional public key in the same wallet as the third party public key;
update the factor score for the third party based on the transaction history associated with the at least one additional public key in the same wallet as the third party public key;

determine the amount of cryptocurrency associated with the cryptocurrency transaction;
calculate a risk score for performing the cryptocurrency transaction based at least in part upon the factor score for the third party and the amount of cryptocurrency;
determine, based on the risk score, that the cryptocurrency transaction is approved;
select a hash function from a plurality of hash functions based on the geographic location of a data center server where a token representing the customer public key may be stored;
apply the hash function to generate the token representing the customer public key;
store the token in the data center server;
encode the token representing the customer public key onto a payment instrument to conduct the cryptocurrency transaction;
electronically link the customer account to the payment Instrument by encoding the token; and
execute the cryptocurrency transaction using the payment instrument.

8. The cryptocurrency risk detection engine of claim 7 , wherein the risk assessment engine is further operable to:
determine whether the transaction is approved based at least in part upon the risk score; and
communicate to the customer and the third party whether the transaction is approved.

9. The cryptocurrency risk detection engine of claim 7 , wherein the cryptocurrency risk detection engine is further operable to:
determine whether the risk score indicates suspicious activity by the third party; and
communicate a notification to the customer that the risk score indicates suspicious activity by the thir

Assignees

• Bank Of America

Inventors

• Ronca James G
• Castinado Joseph B
• Dolan Heather
• Durbin Thomas E
• Thomas Richard H

Classifications

• G06Q20/3829

  involving key management · CPC title

• G06Q20/382

  insuring higher security of transaction · CPC title

• G06Q20/4016 Primary

  involving fraud or risk level assessment in transaction processing · CPC title

• G06Q20/065

  using e-cash · CPC title