ATM Fraud Detection via GPS Location Verification

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Automated banking machines face challenges in securely conducting transactions and preventing unauthorized access, particularly due to the risk of fraud devices being installed near card readers and keypads, which can intercept user data.

Innovation Solution

The implementation of an automated banking machine with enhanced security features, including radiation emitting and sensing devices to detect unauthorized card reading devices, and a system to prevent interception of card data, along with GPS technology for tracking and securing the machines, and a fraud prevention system using cell phone location verification to authenticate transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional card reading and data transmission methods are used, then transaction simplicity is maintained, but security against fraud devices is compromised

Engineering Contradiction:

Improvetransaction securityVSAvoidsecurity system complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system performs preliminary actions by detecting fraud devices and verifying user location before the actual transaction occurs. The fraud device detection system continuously monitors for unauthorized card readers near the card reader, and the location verification system checks the user's GPS coordinates before allowing data transmission, preventing potential fraud before it can occur.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent introduces intermediary verification mechanisms between the user and the transaction system. A fraud detection intermediary monitors for unauthorized devices, and a location verification intermediary confirms user presence through GPS coordinates, adding security layers without requiring direct user interaction with complex security systems.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If GPS location verification is implemented, then fraudulent transaction authorization is prevented, but transaction processing time increases

Engineering Contradiction:

Improveauthorization accuracyVSAvoidtransaction processing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system obtains and verifies user location information in advance before the transaction is finalized. By checking GPS coordinates and comparing them with the ATM location beforehand, the system ensures authorization accuracy while streamlining the actual transaction process.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent replaces traditional manual verification methods with automated GPS-based location verification. Instead of requiring physical presence confirmation or manual ID checks, the system uses electronic location data to automatically verify user presence, reducing processing time while maintaining high authorization accuracy.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Reliability

If fraud device detection systems are added, then unauthorized data interception is prevented, but machine vulnerability to fraud increases

Engineering Contradiction:

Improvedata protectionVSAvoidfraud device interference

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The system applies preliminary anti-action by detecting fraud devices and preventing their operation before they can intercept data. The fraud detection system identifies unauthorized card readers and blocks their ability to capture information, neutralizing the harmful effect before it can impact the transaction.

Inventive Principle:

Principle #9Preliminary anti-action

Solution Approach 2:

The patent converts the presence of fraud devices into a benefit by using their detection as a security feature. Rather than being vulnerable to fraud devices, the system uses the detection of such devices to trigger security protocols, transforming a potential threat into an enhanced protection mechanism.

Inventive Principle:

Principle #22Blessing in disguise (Convert harm into benefit)

Data Source

PatentUS10546468B2Accepting a check deposit from a mobile device in communication with an automated teller machine

Publication Date: 2020.01.28 DIEBOLD NIXDORF INCORPORATED

AI summary

An automated banking machine operates to cause financial transfers responsive at least in part to data read from data bearing records. The automated banking machine includes a card reader that is operative to read card data corresponding to financial accounts from user cards. The card data is linked in at least one data store to data indicating that the card data corresponds to a financial account that is authorized to be used to conduct at least one transaction through use of the automated banking machine. The automated banking machine may be used to carry out financial transfers involving financial accounts by users who are determined to be authorized users of such accounts. Data corresponding to a financial account can also be linked to a mobile wireless device so as to enable financial transfers by authorized users of such accounts.