Security Watch: Patented Protection

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JPMorgan Chase & Co. said Tuesday that it has received a patent for its method of determining the best course of action after receiving signs of fraud on a customer's account.

The New York banking company said its First Watch Intelligence system, for which it received U.S. Patent 7,480,631, is triggered when a customer calls the company to inquire about a suspicious transaction or if JPMorgan Chase's automated real-time transaction monitoring systems observe unusual activity.

First Watch Intelligence also provides bank employees with a series of questions to help determine if fraud is taking place, and, if that cannot be determined, whether the risk level justifies closing the account.

In the text of the patent, which was granted Jan. 20, JPMorgan Chase said First Watch Intelligence is an automated version of its fraud investigation process and can increase the speed and accuracy of an otherwise manual process.