IoT-based financial security system for detecting malicious links and enabling secure transactions

Abstract

An IoT-based financial security system (100) for detecting malicious links and enabling secure transactions, comprising the following: a user interface device (1) used for sending and receiving financial transaction requests; a module (2) for detecting malicious links, configured to analyze URLs embedded in transactional communications using machine learning algorithms trained on phishing URL datasets and behavioral threat patterns, compare URLs against whitelists, blacklists and heuristic-based filters, perform a real-time URL reputation assessment and flag suspicious links; a network security sensor (3) that is communicatively coupled with IoT devices (31) to monitor network packets and detect unauthorized traffic redirection, DNS spoofing and man-in-the-middle attacks; a transaction authentication module (4) capable of generating multi-factor authentication requests and verifying user identity via biometric sensors or one-time passwords (OTPs); a secure transaction routing module (5) configured to redirect legitimate financial requests to authorized servers, block phishing attempts, and ensure secure communication using HTTPS, TLS, and VPN protocols; and a central control unit (6) connected to the user interface device (1), the malicious connection detection module (2), the network security sensor (3), the transaction authentication module (4) and the Safe Transaction Routing Engine (5), wherein the central control unit (6) includes a reporting unit (61) to log detected threats, transaction attempts and blocked violations and to provide real-time alerts to users and financial institutions, wherein the system (100) secures financial transactions by detecting and neutralizing malicious connections via IoT-connected financial applications.

Description

[0001] The present invention relates to the field of financial security systems, particularly to an Internet of Things (IoT) powered system that detects malicious connections and ensures secure financial transactions through real-time threat detection, multi-factor authentication, and secure routing.

[0002] The present invention relates to the field of financial technology and cybersecurity. More specifically, it relates to an Internet of Things (IoT)-enabled financial security system that protects digital financial transactions from cyber threats by integrating multiple security layers. The invention includes machine learning-based malicious link detection, real-time network security monitoring, multi-factor user authentication, and secure transaction routing with blockchain verification. The system is designed to be deployed on various IoT devices such as smartwatches, home assistants, and point-of-sale (POS) terminals to ensure a seamless and secure user experience during financial interactions.

[0003] The field also includes the implementation of cloud-based security analytics that collects, processes, and updates threat data to mitigate new and evolving threats. The invention addresses the growing vulnerabilities in IoT-connected financial ecosystems and provides a robust, adaptable framework that prevents unauthorized access, phishing attacks, DNS spoofing, and data manipulation, improving the integrity and reliability of financial operations.

[0004] In particular, the present invention relates to an IOT-based financial security system for detecting malicious links and enabling secure transactions. BACKGROUND OF THE INVENTION

[0005] The subject matter discussed in the "Background" section should not be assumed to be prior art merely by virtue of its mention in the "Background" section. Likewise, it should not be assumed that a problem mentioned in the Background section or related to the subject matter of the Background section has already been recognized in the prior art. The subject matter of the Background section merely presents various approaches, which may also be inventions in their own right.

[0006] With the proliferation of IoT-connected financial devices and services, users are increasingly vulnerable to phishing attacks, unauthorized redirects, DNS spoofing, and man-in-the-middle (MITM) attacks. Financial institutions and consumers alike face significant challenges as cybercriminals' tactics become increasingly sophisticated, including creating highly convincing phishing websites and employing complex identity theft techniques.

[0007] Traditional security systems often rely on static detection methods that are difficult to adapt to rapidly evolving threats, leaving financial transactions unprotected. Many existing solutions focus on isolated security aspects such as URL filtering or password authentication, which alone cannot provide comprehensive protection against multi-vector attacks. Furthermore, the emergence of IoT devices such as smartwatches, home assistants, and POS terminals has expanded the attack surface for cybercriminals.

[0008] The integration of IoT devices into financial processes has created an urgent need for a holistic approach to financial security that encompasses both user authentication and real-time threat detection across multiple endpoints. Such a system must be able to continuously monitor network activity, detect malicious URLs, secure communication channels, and ensure user identity verification with minimal impact on the user experience.

[0009] Therefore, there is a need for a robust IoT-based financial security system that addresses these limitations by integrating advanced machine learning, secure communication protocols, blockchain verification, and multi-factor authentication to prevent unauthorized access and ensure the integrity of financial transactions.

[0010] The information disclosed in this Background section is provided solely to facilitate an understanding of the background of the invention and may therefore contain information that is not prior art and that is already known to a person of ordinary skill in the art in this country. SUMMARY

[0011] Before describing the present systems and methods, it should be noted that this application is not limited to the systems and methods described, as there may be several possible embodiments not expressly shown in this disclosure. It should also be understood that the terminology used in the description is for the purpose of describing the particular versions or embodiments only and is not intended to limit the scope of the present application.

[0012] The IoT-based financial security system is designed to protect financial transactions in real time by leveraging a combination of advanced machine learning, secure communication protocols, and blockchain verification. The system comprises several interconnected components, including a user interface for interaction, a malicious link detection module that identifies phishing URLs, a network security sensor for monitoring data flow and detecting unauthorized attempts, and a transaction authentication module ( ) that verifies the user's identity using multi-factor authentication methods. The secure transaction routing module ensures that legitimate requests are securely routed to authorized servers by using encryption technologies and blockchain verification to prevent unauthorized changes.

[0013] The central control unit coordinates the operation of all modules and creates detailed logs of detected threats, transaction attempts, and security breaches, which are sent to users and financial institutions in real time. This ensures transparency and enables timely responses to threats. The system also integrates various IoT devices such as smartwatches, home assistants, and POS terminals, all of which are monitored for anomalies via a central platform.

[0014] Furthermore, the cloud-based security analytics platform improves overall security by collecting, processing, and updating threat data across multiple endpoints. By generating predictive security reports, it improves the system's ability to detect new threats and keeps detection engines up to date with the latest threat signatures.

[0015] This invention provides a robust and comprehensive solution to the challenges of modern cyber threats, ensuring the integrity, confidentiality, and authenticity of financial transactions while ensuring a seamless user experience.

[0016] The present invention provides an IoT-based financial security system (100) that addresses the security challenges associated with financial transactions conducted via connected devices. The system includes a user interface device (1), a malicious link detection module (2), a network security sensor (3), a transaction authentication module (4), a secure transaction routing engine (5), and a central control unit (6). These components work together to detect malicious URLs, secure communication channels, and send real-time alerts to users and financial institutions. BRIEF DESCRIPTION OF THE DRAWING

[0017] To clarify various aspects of some embodiments of the present invention, a more detailed description of the invention will be given by reference to specific embodiments illustrated in the accompanying drawings. It is understood that these drawings show only illustrative embodiments of the invention and are therefore not to be considered limiting its scope. The invention will be described and explained with additional specificity and detail through the use of the accompanying drawings.

[0018] In order that the advantages of the present invention may be readily understood, a detailed description of the invention is discussed below in conjunction with the accompanying drawings, which, however, should not be construed as limiting the scope of the invention to the accompanying drawings, in which: Fig.shows the block diagram of an IOT-based financial security system (100) for detecting malicious links and enabling secure transactions. DETAILED DESCRIPTION

[0019] The present invention relates to an IOT-based financial security system (100) for detecting malicious links and enabling secure transactions.

[0020] The IoT-based Financial Security System (100) is designed to provide a comprehensive solution for secure financial transactions by integrating multiple components into a seamless workflow. Each feature of the system is described in detail below: User Interface Device (1): The user interface device (1) is the primary medium through which users interact with the system. It is used to send and receive requests for financial transactions and can include mobile devices, web interfaces, smart wearables, and point-of-sale (POS) terminals. This device enables users to initiate and manage transactions securely while receiving real-time security alerts.

[0021] Malicious Link Detection Module (2): The Malicious Link Detection Module (2) is the heart of the system and is configured to analyze URLs embedded in transaction-related messages. This module uses machine learning algorithms based on comprehensive phishing URL datasets and behavioral threat patterns. It compares URLs against whitelist and blacklist databases and employs heuristic-based filters to increase detection accuracy. URL reputation is assessed in real time to identify and flag suspicious links before they reach the user.

[0022] Network Security Sensor (3): The Network Security Sensor (3) is communicatively coupled with IoT devices (31) and monitors network packets to detect unauthorized traffic redirection, DNS spoofing, and man-in-the-middle attacks. This sensor continuously examines incoming and outgoing data packets for anomalies that could indicate security breaches. Furthermore, it detects unauthorized device tampering and data access attempts and transmits immediate alerts to the user interface device (1) so the user can be aware and take immediate action.

[0023] Transaction Authentication Module (4): The Transaction Authentication Module (4) ensures that only authorized users can complete transactions by generating multi-factor authentication (MFA) requests. In addition to traditional one-time passwords (OTPs), the module also supports biometric inputs such as facial recognition, fingerprint scans, and voice-based verification. It also includes session-based tokenization to protect user data and prevent theft or unauthorized reuse of data.

[0024] Safe Transaction Routing Engine (5): The Safe Transaction Routing Engine (5) processes legitimate financial transaction requests and routes them to authorized servers. It ensures secure communication by implementing protocols such as HTTPS, TLS, and VPN to protect sensitive data during transmission. The engine is also equipped with blockchain-based verification mechanisms that ensure the immutability and traceability of financial transactions, thus protecting them from unauthorized modification or interception.

[0025] Central Control Unit (6): The Central Control Unit (6) is the central hub that connects the user interface (1), the malicious link detection module (2), the network security sensor (3), the transaction authentication module (4), and the secure transaction routing module (5). It coordinates the operation of all modules and ensures seamless communication. The Central Control Unit (6) includes a reporting unit (61) responsible for logging detected threats, transaction attempts, and blocked violations. Real-time alerts are generated and sent to users and financial institutions to enable rapid response to potential threats.

[0026] IoT Devices (31): The IoT devices (31) integrated into the system (100) include smart wearable devices, connected home assistants, and POS terminals. These devices are securely connected to the network security sensor (3) for continuous monitoring and centralized security management. This ensures that all IoT endpoints remain protected from unauthorized access attempts and potential threats.

[0027] Cloud-based security analytics platform: In one embodiment, the system (100) includes a cloud-based security analytics platform that collects, processes, and updates threat data across multiple IoT endpoints. This platform generates predictive security reports based on detected patterns and trends, further improving the system's ability to prevent future attacks.

[0028] System Operation: The workflow of the IoT-based financial security system (100) includes the following steps: • Initiation of a transaction request: The user initiates a transaction via the user interface (1). • URL Analysis: The Malicious Link Detection module (2) analyzes URLs for potential phishing threats. • Network monitoring: The network security sensor (3) monitors network traffic for unauthorized redirections or attacks. • User authentication: The transaction authentication module (4) verifies the user’s identity through MFA. • Secure Routing: The secure transaction routing module (5) redirects legitimate requests while blocking unauthorized transactions. • Threat logging and reporting: The central control unit (6) logs security incidents and sends real-time notifications.

[0029] Industrial Applicability: The invention is applicable to secure online banking, digital wallets, e-commerce platforms, and financial services conducted via IoT-connected devices. By providing robust protection against cyber threats, the system increases the security and reliability of financial transactions.

[0030] The IoT-based financial security system (100) described here provides an innovative and comprehensive solution for detecting malicious links and securing financial transactions. By integrating advanced machine learning, multi-factor authentication, secure routing protocols, and real-time threat intelligence updates, the system's ability to prevent unauthorized transactions and protect sensitive financial data is significantly enhanced. Example of an invention in use

[0031] A financial transaction initiated by a user named Alice via her smartwatch (user interface device). Alice decides to transfer $1,000 to her friend's account. Once the request is made, the system performs the following steps: • URL analysis: The malicious link detection module scans the communication URL and determines that it matches the bank's authorized whitelist. • Network Monitoring: The Network Security Sensor checks for signs of DNS spoofing or MITM attacks and finds no unauthorized redirects. • Authentication: Alice is asked to scan her fingerprint using her smartwatch. The transaction authentication module successfully verifies her identity. • Secure Routing: The secure transaction routing engine encrypts the transaction request using HTTPS and TLS protocols, ensuring that the data remains confidential. • Blockchain audit: The transaction is recorded on the blockchain for traceability to ensure that no changes can be made after transmission. • Logging and reporting: The central control unit logs the transaction attempt, marks it as secure, and sends Alice a confirmation message. • Security analytics: The cloud-based analytics platform updates its records with transaction data and looks for patterns that could indicate potential threats.

[0032] This example demonstrates how the system components work together to provide the user with a secure, seamless experience while ensuring continuous monitoring for threats and data integrity.

Claims

[1] An IoT-based financial security system (100) for detecting malicious links and enabling secure transactions, comprising: a user interface device (1) for sending and receiving financial transaction requests; a malicious link detection module (2) configured to analyze URLs embedded in transaction-related communications using machine learning algorithms trained on phishing URL datasets and behavioral threat patterns, compare URLs against whitelists, blacklists, and heuristic-based filters, perform real-time URL reputation assessment, and flag suspicious links; a network security sensor (3) communicatively coupled to IoT devices (31) to monitor network packets and detect unauthorized traffic redirection, DNS spoofing, and man-in-the-middle attacks; a transaction authentication module (4) capable of generating multi-factor authentication requests and verifying user identity via biometric sensors or one-time passwords (OTPs); a secure transaction routing module (5) configured to redirect legitimate financial requests to authorized servers, block phishing attempts, and ensure secure communication using HTTPS, TLS, and VPN protocols; and a central control unit (6) connected to the user interface device (1), the malicious connection detection module (2), the network security sensor (3), the transaction authentication module (4), and the Safe Transaction Routing Engine (5), wherein the central control unit (6) comprises a report generation unit (61) to log detected threats, transaction attempts, and blocked violations and to provide real-time alerts to users and financial institutions, the system (100) securing financial transactions by detecting and neutralizing malicious connections via IoT-connected financial applications. [2] The system (100) of claim 1, wherein the malicious link detection module (2) is regularly updated using external threat data to incorporate new threat signatures and improve detection accuracy. [3] The system (100) of claim 1, wherein the transaction authentication module (4) uses facial recognition, fingerprint scanning, or voice-based verification as biometric inputs and includes session-based tokenization to secure user credentials. [4] The system (100) of claim 1, wherein the secure transaction routing engine (5) includes blockchain-based verification to ensure the immutability and traceability of financial transactions. [5] The system (100) of claim 1, wherein the network security sensor (3) detects unauthorized device tampering and unauthorized data access attempts and issues warnings via the user interface device (1). [6] The system (100) of claim 1, wherein the IoT devices (31) include smart wearable devices, networked home assistants, POS (point-of-sale) terminals, and other financial interfaces, all securely integrated into the system (100) for centralized security monitoring. [7] The system (100) of claim 1 further comprises a cloud-based security analytics platform to collect, process, and update threat data across multiple IoT endpoints and generate predictive security reports.

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