API Identity Verification via External Mediator
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Solution Overview
Problem
Financial institutions face challenges in verifying the identity of users during online transactions, leading to risks of fraudulent activities due to the difficulty in authenticating users based on provided information.
Innovation Solution
A financial institution computing system uses an application programming interface (API) to receive and verify user login information, providing verified user information to customers, which includes an identity verification process through matching stored login credentials and external service providers to ensure the authenticity of user identities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional information collection methods are used during profile setup, then users can provide personal information, but the retailer cannot truly verify the customer's identity
Solution Approach 1:
The patent introduces an external service provider as an intermediary to perform identity verification. The retailer's system collects user information and sends it to the external service provider, which independently verifies the identity and returns a verification result. This mediator approach allows the retailer to achieve reliable verification without building complex verification capabilities in-house.
Solution Approach 2:
The verification function is segmented from the retailer's core business operations. Instead of integrating complex verification systems into the retailer's own infrastructure, the patent separates the verification function to an external service provider, allowing the retailer to focus on e-commerce operations while maintaining verification reliability through specialized external services.
2Reliability
If comprehensive identity verification is implemented, then fraudulent transactions can be reduced, but the transaction process becomes more complex and time-consuming
Solution Approach 1:
The external service provider performs identity verification in advance before the actual transaction occurs. By completing the verification process preliminarily during profile setup or initial authentication, the system ensures transaction security is established beforehand, allowing subsequent transactions to proceed faster without repeating the full verification process.
Solution Approach 2:
The external service provider provides verification feedback to the retailer's system, which then uses this information to make authentication decisions. This feedback mechanism allows the system to quickly determine whether to allow or block transactions based on verified identity information, balancing security with transaction speed through efficient decision-making loops.
Data Source
AI summary
The described financial institution computing system provides services to customers through an application programming interface (“API”). The services include user identification services to customers. The user identification services allow the customers to verify the identity of users as non-fraudulent users. Further the user identification services allow the financial institution to provide known user information to the customers for purposes of prepopulating registration forms, completing transactions, and the like. Further services, such as user account validation services, payment services, and the like are also possible through the financial institution APIs. In some situations, users are registered with the financial institution. For example, a user may also be an account holder with the financial institution. In other situations, the users are not registered with the financial institution.