Account Validation via Weighted Risk Score Aggregation
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Solution Overview
Problem
Current systems fail to effectively validate payment information to determine the likelihood of fraud in financial transactions, which can result in payments being made to fraudulent parties, posing a significant risk due to the potential for imposters intercepting payment processes.
Innovation Solution
A computer-based method and system that processes validation requests by querying multiple validation systems, calculating risk scores based on payment information comparisons, weighting these scores by past accuracy, and aggregating them into a cumulative risk score to determine the likelihood of fraud, utilizing a networked environment with financial institution, industry utility, interbank blockchain, and credit agency systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If multiple validation systems are queried to improve fraud detection accuracy, then the reliability of fraud detection is improved, but the complexity of the validation system increases
Solution Approach 1:
The validation system is segmented into multiple independent validation systems (financial institution system, industry utility system, interbank blockchain system, credit agency system), each responsible for specific validation tasks. This segmentation allows the system to maintain high reliability through diversified validation while managing complexity by distributing functions across separate modules.
Solution Approach 2:
The validation computer program acts as an intermediary that coordinates queries between the client device and multiple validation systems. It aggregates responses, calculates risk scores, and synthesizes results from various sources, thereby managing the complexity of integrating multiple validation systems while maintaining high detection accuracy.
2Reliability
If comprehensive validation across multiple systems is performed to reduce fraudulent payments, then transaction security is improved, but the processing time increases
Solution Approach 1:
The system performs preliminary validation by querying multiple validation systems in parallel before the actual transaction is finalized. Risk scores are calculated and aggregated in advance, allowing the system to make quick decisions about transaction approval or rejection without delaying the main transaction process.
Solution Approach 2:
The system implements a tiered validation approach where not all validation systems are queried for every transaction. Based on risk factors and transaction characteristics, the system selectively queries relevant validation systems, performing partial validation for low-risk transactions and excessive validation for high-risk transactions, thereby optimizing processing time while maintaining security.
Data Source
AI summary
Systems and methods for account validation are disclosed. A method may include: receiving, at a validation computer program and from a client device, a request to validate payment information; querying, by the validation computer program, a plurality of validation systems with at least some of the payment information; receiving, at the validation computer program, a query response from each validation system; calculating, by the validation computer program, a risk score for each validation system based on a comparison between the payment information and the query response; weighting, by the validation computer program, the risk score for each validation system, wherein the weighting may be based on an accuracy of past risk scores for each validation system; aggregating, by the validation computer program, the weighted risk scores into a cumulative risk score; and outputting the cumulative risk score to the client device.