Authentication Identifier for Secure Fund Transfer
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current financial transaction systems face security issues due to public disclosure of payee information, leading to potential hacking and improper funds transfers, as well as a lack of ability for payers to specify the purpose of fund transfers.
Innovation Solution
A system that generates a unique authentication identifier for payees, allowing secure fund transfers without revealing their name or account number, and includes features like freezing payment accounts and automatic batch processing to prevent unauthorized transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If payee information (name and bank account number) is publicly disclosed to enable fund transfers, then ease of operation is improved, but security is worsened due to potential hacking and improper funds transfers
Solution Approach 1:
The patent introduces a third-party payment system as an intermediary between the payer and payee. Instead of directly using the payee's bank account number, the system uses an authentication identifier that the payment system verifies. This intermediary layer prevents hackers from directly accessing or misusing bank account information while still enabling fund transfers.
Solution Approach 2:
The patent extracts the sensitive bank account number from the public domain by replacing it with an authentication identifier. The authentication identifier does not contain the actual bank account number, thus removing the security risk associated with exposing bank account information while maintaining the ability to transfer funds.
2Reliability
If authentication identifier verification is implemented to prevent hacking, then security is improved, but device complexity is worsened due to additional verification steps
Solution Approach 1:
The payment system acts as an intermediary that handles the complex verification process. The payer's device only needs to input the authentication identifier, while the payment system performs the verification and coordinates with the banking system. This distributes the complexity to a specialized intermediary rather than requiring complex security implementations in every device.
3Reliability
If batch processing with freezing mechanism is implemented to prevent unauthorized transfers, then security is improved, but productivity is worsened due to delayed fund transfers
Solution Approach 1:
The system performs preliminary actions by freezing the payment account immediately after receiving the transfer request and before actually transferring funds. This preliminary freezing prevents unauthorized transfers during the verification process. The account is unfrozen once verification is complete, allowing the transfer to proceed. This preliminary action ensures security without permanently delaying legitimate transfers.
Solution Approach 2:
The system uses periodic batch processing to verify and execute fund transfers in groups rather than continuously. This periodic verification mechanism allows the system to process multiple transfers efficiently while maintaining security checks at regular intervals, balancing security requirements with processing efficiency.
Data Source
AI summary
One embodiment provides a system that facilitates secure transfer of funds. During operation, the system generates, by a server, an authentication identifier for a payee of a bank account, wherein the authentication identifier indicates the bank account and a corresponding payment account of the payee. The system receives, from a payer, a message which indicates a first command to transfer a payment amount to the payee, wherein the first command includes the authentication identifier. In response to successfully verifying the authentication identifier, the system extracts information associated with the payment account and the bank account from the authentication identifier. The system transfers the payment amount to the bank account of the payee based on the extracted information.