Contextual Data Service for Electronic Transaction Authentication

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Solution Overview

Problem

Existing systems face challenges in efficiently authenticating electronic transactions within digital networks, as entities often lack comprehensive data to determine transaction authenticity.

Innovation Solution

A computer device and method that involve receiving a transaction, accessing transaction contextual data, applying authentication decision rules to determine initial authentication assessment information, converting this information into a condensed authentication assessment indicator, and transmitting it for further evaluation and decision-making.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If entities attempt to evaluate transaction authenticity based on limited available information, then the evaluation process remains simple, but the accuracy and reliability of authentication assessment deteriorates

Engineering Contradiction:
Improveauthentication assessment accuracyVSAvoidsystem complexity
Core Design Contradiction:
Measurement precisionVSDevice complexity

Solution Approach 1:

The patent introduces a contextual data service as an intermediary component that collects, standardizes, and distributes transaction contextual data to multiple evaluating entities. This mediator enables entities to access comprehensive authentication data without each entity needing to build complex data collection systems, thereby improving authentication accuracy while maintaining system simplicity.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The contextual data service performs multiple functions including data collection from various sources, data standardization, data validation, and distribution to multiple entities. This multi-functional approach consolidates what would otherwise require separate systems at each evaluating entity, improving accuracy without proportionally increasing overall system complexity.

Inventive Principle:
Principle #6Universality (Multi-functionality)

2Reliability

If comprehensive transaction contextual data is collected and shared across the network, then the ability to detect non-authentic transactions improves, but the quantity of data to be processed increases

Engineering Contradiction:
Improvetransaction authenticity detection capabilityVSAvoiddata volume
Core Design Contradiction:
ReliabilityVSQuantity of substance

Solution Approach 1:

The patent extracts only the essential and relevant contextual data elements needed for authentication assessment from the complete set of available data. The contextual data service identifies and extracts specific high-value data points (such as device information, location data, transaction patterns) while excluding redundant information, thereby improving detection capability without proportionally increasing data volume.

Inventive Principle:
Principle #2Taking out (Extraction)

Solution Approach 2:

The system transforms raw contextual data into standardized parameters with defined formats and structures. By changing the parameter representation from unstructured raw data to standardized authentication factors, the system enables efficient processing and comparison while reducing the effective data volume that needs to be handled by evaluating entities.

Inventive Principle:
Principle #35Parameter changes

3Productivity

If multiple evaluating entities independently assess transaction authenticity, then each entity maintains operational independence, but the overall authentication efficiency and consistency deteriorates

Engineering Contradiction:
Improveauthentication processing efficiencyVSAvoidauthentication assessment consistency
Core Design Contradiction:
ProductivityVSStability of the object's composition

Solution Approach 1:

The patent implements a feedback mechanism where contextual data is systematically collected from transaction outcomes and authentication results, then fed back into the contextual data service. This feedback loop enables continuous refinement of the contextual data collection and evaluation processes, improving both processing efficiency and assessment consistency across multiple entities through learned patterns and standardized approaches.

Inventive Principle:
Principle #23Feedback

Solution Approach 2:

The authentication system is segmented into distinct functional components: contextual data collection, data standardization, evaluation rule application, and decision-making. Each evaluating entity independently applies its own evaluation rules to standardized contextual data, maintaining operational independence while ensuring consistency through the standardized data format and structured assessment process.

Inventive Principle:
Principle #1Segmentation

Data Source

PatentEP3987740B1Systems and methods for authenticating an electronic transaction
Publication Date: 2025.02.19 MICROSOFT TECHNOLOGY LICENSING LLC
  • EP3987740B1 patent drawingFigure 1
  • EP3987740B1 patent drawingFigure 2
  • EP3987740B1 patent drawingFigure 3

AI summary

Devices and methods for securing electronic transactions in a computing network are configured to receive a transaction, access transaction contextual data for the transaction, and apply one or more authentication decision rules to the transaction contextual data to determine initial authentication assessment information for the transaction. Further, aspects are configured to convert the initial authentication assessment information into a condensed authentication assessment indicator having an assessment value selected from a plurality of assessment values based on an assessment value definition, and transmit the condensed authentication assessment indicator. Also, aspects receive a transaction authentication decision based in part on the condensed authentication assessment indicator, and process or deny processing of the transaction based on the transaction authentication decision.