Common Purchase Point in fraud analytics for credit card industry

[Ajitesh]

Can someone tell how to prepare and build the logic on SAS to catch Common purchase point. CPP analysis identifies the likely merchant location from where card numbers were stolen so that banks can mitigate future fraud. 

[Reeza]

Are you using SAS Base or a specific SAS Fraud product? I don't believe there is a defined algorithm for this in SAS Base, you'll have to determine the algorithm and implement it yourself.

[SASKiwi]

The way I would approach this is to get your Fraud team to supply a list of card numbers recently hit with CPP fraud. Then I would analyse the transactions for those cards over the same period to see if I could find a common behaviour pattern linked to CPP for these cards versus 'normal' transaction behaviour.

I would then develop and test an algorithm against a population of credit card transactions to measure how effective it is in identifying CPP. This is not a trivial task and will involve processing millions of card transactions and many weeks of effort with a lot of trial and error to come up with an effective solution.

Note: every credit card providers' transaction data is different so it is highly-unlikely an off-the-shelf solution will work without a lot of customisation. DIY (Do It Yourself) is probably a better bet.

[Ajitesh]

Thank you so much.