Abstract

The present disclosure relates to a system and method for relationship‑validated fraud prevention in digital payment reversal transactions. The system may be configured to monitor incoming transactions to a user account. Based on monitoring, the system may be configured to detect a user initiation of an outgoing payment following receipt of an incoming payment. Thereafter, the system may be configured to determine whether a payer and payee associated with the payment have an established transaction history and further evaluates timing between the incoming payment and the outgoing payment. The system may be then configured to compare an outgoing transaction amount against a recent incoming transaction amount to detect disproportionate refund attempts. The system is further configured to combine behavioral, timing, amount, and relationship data to calculate a real-time risk score. The system may be then configured to determine an appropriate control action based on the calculated real-time risk score. The system may be further configured to execute the determined control action. Thus, the present disclosure provides protection against manipulation‑based refund fraud by enabling relationship‑aware and context‑validated controls, reducing fraudulent fund transfers while maintaining real‑time payment efficiency and user experience.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.

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