Self authentication

Abstract

A system, method and a device for offline authentication of transactions using mobile device, based on, analytic engine such as behavioral pattern detection are provided. The behavioral pattern can be for a specific person, for group of people with similar characteristics, or a combination of the two. The invention has the advantage over the prior art centralized authentication and fraud detection systems in that it is more precise in identifying and preventing fraud in real time. The precision is better for both customer and merchant frauds. The present invention also requires fewer investments in infrastructure and uses less communication traffic when compared to the prior art.

Description

FIELD OF THE INVENTION[0001]The present invention is directed to the use of mobile devices in offline transactions, and, more particularly, to a system, method and device for self-authentication of transactions.DESCRIPTION OF THE RELATED ART[0002]Mobile devices nowadays are in widespread use. The mobile devices of today have many uses other than plain conversation and messaging. One of the emerging fields of use for the mobile devices is for transactions such as purchasing an item.[0003]The improved ability of mobile devices provides enhanced web capabilities (e.g. internet) and applications. The user interface has improved and thus created a platform for applications, innovative initiatives and new opportunities. In the context of financial transactions, the mobile device can be used in many processes, when payments by which (m-payments) are one category of financial transactions implemented by the mobile platform, along with financial services (m-services) and trade (m-commerce).[...

AI Technical Summary

Benefits of technology

The present invention is a system for authentication and fraud detection that is more precise and effective than previous methods. It can detect and prevent fraud in real-time, with high accuracy for both customer and merchant frauds. Additionally, the system requires less investments in infrastructure and communication traffic compared to previous methods.

Problems solved by technology

This is because the investment in infrastructure in order to verify small amount transactions would not be cost effective compared to the gain.

During the check, the server has to retrieve all the needed information needed for processing and perform a large amount of complex mathematical calculations.

In practice, these servers are very expensive.

Therefore the issuer compromises on the quality of the statistical models and the quantity of the checks.

The result is that the level of coverage and accuracy are insufficient and there are many mistakes:

In practice, due to the low level of accuracy, transactions are rarely blocked.

However, when self-authentication (offline approval) process estimates a possibility of fraud usage, online approval for more detailed statistical analysis processing is requested from a remote computer.

None of the current technologies and prior art, taken alone or in combination, does not address the issue of offline authorization, self-authentication and fraud detection of a transaction, e.g. there is no handling of the security aspects of the transaction without requesting the bank or the credit card company for approval.

There is also no solution to the issue of using a statistical model with lower suspicious rate then current statistical models without blocking the transaction or the card.

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