Beneficiary Feedback Response for Fraud Risk Reduction

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Solution Overview

Problem

Conventional systems fail to provide entities with an indication of the accuracy of beneficiary information and analysis of historical beneficiary patterns, leading to increased fraud risks and inefficient transaction processes.

Innovation Solution

The system generates a beneficiary feedback response by performing verification, scoring, and analytics processes on beneficiary accounts, providing insights into the accuracy of beneficiary information and historical transaction patterns to aid in selecting appropriate payment types or verifying beneficiary credibility.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional systems are used for transactions without beneficiary analysis, then transaction speed is maintained, but fraud risk increases and transaction reliability deteriorates

Engineering Contradiction:

Improvetransaction reliabilityVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system performs beneficiary analysis, verification, scoring, and analytics processes before the actual transaction is executed. This preliminary action allows the entity to assess beneficiary credibility and select appropriate payment types in advance, ensuring transaction reliability without adding complexity to the core transaction mechanism.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system introduces an intermediary analysis layer between the entity and beneficiary that provides feedback responses without directly interfering with the transaction execution. This intermediary layer includes verification processes, scoring models, and analytics components that assess risk and guide payment type selection while maintaining the existing transaction infrastructure.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Measurement precision

If comprehensive beneficiary analysis is performed, then fraud detection capability is improved, but processing time increases

Engineering Contradiction:

Improvebeneficiary information accuracy assessmentVSAvoidtransaction processing time

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The beneficiary analysis process is segmented into distinct components: verification processes that check beneficiary information accuracy, scoring processes that evaluate payment type suitability, and analytics processes that examine historical transaction patterns. This segmentation allows each component to operate independently and efficiently, reducing overall processing time while maintaining comprehensive analysis.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system performs only the necessary level of analysis based on transaction requirements and risk levels. Not all transactions require the full suite of verification, scoring, and analytics processes - the system adapts the depth of analysis to match the specific transaction context, avoiding unnecessary processing time while maintaining adequate fraud detection.

Inventive Principle:

Principle #16Partial or excessive action

3Measurement precision

If manual verification of beneficiary information is performed, then information accuracy is improved, but computational resource consumption increases

Engineering Contradiction:

Improvebeneficiary information accuracyVSAvoidcomputational resource usage

Core Design Contradiction:

Measurement precisionVSUse of energy by moving object

Solution Approach 1:

The system uses automated verification processes, scoring models, and analytics algorithms that self-evaluate beneficiary information without requiring manual intervention. The verification process automatically compares provided beneficiary information against known data sources, the scoring process automatically evaluates payment type suitability, and the analytics process automatically examines historical patterns, significantly reducing computational resource consumption compared to manual verification.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The system replaces manual verification mechanisms with automated electronic processes including database queries, algorithmic scoring, and computational analytics. This substitution of mechanical/manual processes with electronic and algorithmic systems maintains high information accuracy assessment capability while dramatically reducing computational resource usage and enabling scalable processing.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS20250094957A1Systems and methods for dynamic and flexible beneficiary analysis

Publication Date: 2025.03.20 WELLS FARGO BANK NA

AI summary

Systems, apparatuses, methods, and computer program products are disclosed for generating and providing a beneficiary feedback response. An example method includes receiving an inquiry request and identifying a beneficiary account for a beneficiary of interest. The example method further includes determining at least one process to be performed on the inquiry data and (i) generating a verification response, (ii) a scoring response, and/or (iii) an analytics response. The example method further includes generating a beneficiary feedback response which includes the verification response, the scoring response, and/or the analytics response and providing the beneficiary feedback response.