Authentication Data Collection System for Fraud Analytics
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Solution Overview
Problem
In online shopping and 'card not present' transactions, merchants face challenges in authenticating whether the person using a payment card is the authorized cardholder, leading to difficulties in reducing credit card fraud, as existing authentication systems are complex and costly.
Innovation Solution
A system and method that collect authentication data from various entities within an authentication ecosystem, store it in a data repository, and use it for business analytics and reporting, providing an end-to-end view of transactions, including authentication data for fraud scoring and pattern analysis.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional authentication systems (3DS Protocol) are used to verify cardholder identity in online transactions, then fraud reduction capability is improved, but system complexity and implementation cost increase
Solution Approach 1:
The patent segments the authentication ecosystem into distinct entities (merchants, issuers, authentication service providers, data repositories) and collects authentication data from each separately. This modular approach allows each entity to maintain its own authentication processes while contributing data to a comprehensive analytics system, reducing overall system complexity while maintaining fraud reduction capability.
Solution Approach 2:
The patent introduces an intermediary data repository and analytics system that collects, stores, and analyzes authentication data from multiple sources. This intermediary layer enables fraud detection and pattern analysis without requiring direct integration between all authentication ecosystem participants, thereby reducing implementation complexity while improving reliability.
2Reliability
If comprehensive authentication data collection from multiple entities is implemented, then fraud detection capability is improved, but data processing and storage requirements increase
Solution Approach 1:
The patent extracts only the necessary authentication data elements from each entity in the authentication ecosystem and stores them in a centralized repository. By taking out only the relevant data (authentication results, transaction identifiers, timestamps) rather than complete transaction records, the system achieves improved fraud detection capability while controlling data storage and processing requirements.
Solution Approach 2:
The patent creates a universal data repository that serves multiple functions: storing authentication data, enabling fraud detection analytics, supporting pattern analysis, and providing data to multiple stakeholders. This multi-functional system consolidates data processing requirements into a single infrastructure that serves the entire authentication ecosystem.
Data Source
AI summary
Methods, media, and systems directed to a platform for determining, processing, storing, and analyzing authentication data from various internal and external systems within an authentication ecosystem, and from other authentication systems providing authentication services.