TECHNICAL FIELD

This application relates generally to Internet information processing technologies and computer technologies, and more specifically, to a risk management method and related devices.

BACKGROUND

Risk management is an important component of payment security. It generally includes determining a proper risk management action (i.e., control decision) for a potentially risky transaction. Possible risk management actions to a transaction may include: direct approval (no further verification needed) and requesting further identity verifications such as text message verification, face verification, etc.

Risk management action is a safety net of payment security and also a direct contact point for customer experience. The soundness of a risk management decision directly impacts the effectiveness of risk management and customer experience. An ideal control decision may include the following two aspects: on one hand, it should approve as many as possible authorized transactions; on the other hand, it should at least request further verifications for as many as possible unauthorized transactions, and these further verifications should be difficult, if possible at all, to bypass. These two aspects affect customer experiences and the effectiveness of risk management.

Conventional ways to make control decision for risk management may include two types. The first type is a rule-based method. In this type, risk management rules are determined based on a understanding to the business and transaction. These rules may take into consideration transaction elements such as transaction amount, transaction scenario, magnitude of possible loss, etc. For an actual transaction, various elements of the transaction will be analyzed, and a rule that incorporates elements most closely matching with those of the transaction will be selected. A corresponding risk decision will be made based on the selected rule. For example, for a low risk, small amount, offline transaction, such as a transaction for a ride-hailing service fee, the corresponding rule-based control decision may be requesting text message verification. The second type is a combination of the aforementioned rule-based method with additional field data from methods such as user survey. In the second type, the rules may be adjusted based on the field data. Since the user survey results may include, to some extent, personalized information of a particular type of users, customer experiences may be improved with the second type of risk management method.

The aforementioned conventional ways to make control decision, however, may have the following drawbacks. First, the rule-based method heavily relies on the rule maker's subject understanding of a business and transaction, and such understanding is inevitably prone to errors. Moreover, the rule-based method does not take into account that elements of a transaction may change over time, and thus may not be able to adapt to these changes timely. These deficiencies will lead to false positive or false negative in risk management. False negative means an unauthorized transaction is erroneously identified as an authorized transaction, and false positive means an authorized transaction is erroneously identified as an unauthorized transaction. False negative adversely affects the effectiveness of the risk management, while false positive adversely affects customer experiences in the transactions. Second, the method that takes into account the field data from user survey inevitably faces the challenges of high cost associated with the user survey and election bias due to insufficient sample sizes in the user survey. Thus, there is also room for improvement for the this type of risk management method.

SUMMARY

In view of the limitations of conventional risk management methods described above, this application provides a risk management method and related devices that address at least some of the aforementioned limitations. Various embodiments of this specification can include systems, methods, and non-transitory computer readable media for a risk management method.

Various factors, such as minimizing financial loss due to failed risk management, minimizing unnecessary interference to authorized transactions, and minimizing the cost associated with identity verification, are taken into consideration in this risk management method. Thus, this application provides a risk management method that improves transaction security without sacrificing customer experience.

This application provides a risk management method. This method may include determining a candidate verification mode set for a target event, wherein the candidate verification mode set may include one or more verification modes; determining output weights for at least some of the verification modes in the verification mode set; and selecting a verification mode for risk management of the target event from the candidate verification mode set based on the output weights.

This application further provides a risk management device, comprising one or more processors and one or more non-transitory machine-readable memories coupled to the one or more processors and configured with instructions executable by the one or more processors to cause the device to perform operations. The operations may include: determining a candidate verification mode set for a target event, wherein the candidate verification mode set may include one or more verification modes; determining output weights for at least some of the verification modes in the candidate verification mode set; and selecting a verification mode for risk management of the target event from the candidate verification mode set based on the output weights.

This application further provides a non-transitory machine-readable storage medium associated with a risk management method, configured with instructions executable by one or more processors to cause the one or more processor to perform operations. The operations may include: determining a candidate verification mode set for a target event, wherein the candidate verification mode set may include one or more verification modes; determining output weights for at least some of the verification modes in the candidate verification mode set; and selecting a verification mode for risk management of the target event from the candidate verification mode set based on the output weights.

In the risk management method of this application, multiple factors, such as risk type, device type, user preference, are taken into consideration in a quantification process of the method. Thus, this method avoids excessive reliance on subject understanding of a transaction, improves the robustness of the risk management against unauthorized transactions, and reduces unnecessary interference to authorized transactions.

The risk management method of this application utilizes existing data to the largest extent possible, and it may be easily adjusted and expanded according to different business requirements. New elements of the transactions, such as new business scenarios and new identify verification modes can also be easily incorporated into the method of this application.

These and other features of the systems, methods, and non-transitory machine-readable media disclosed herein, as well as the methods of operation and functions of the related elements of structure and the combination of parts and economies of manufacture, will become more apparent upon consideration of the following description and the appended claims with reference to the accompanying drawings, all of which form a part of this specification, wherein like reference numerals designate corresponding parts in the various figures. The drawings are for purposes of illustration and description only and are not intended as a definition of the limits of the invention.

Embodiments of this application will be described in details below with reference to the accompanying drawings to fully illustrate the purposes, characteristics and advantages of the aforementioned methods and devices.

