Cryptographic Authentication Grid for Money Transfer Fraud Prevention
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Solution Overview
Problem
Money transfer systems face fraud risks due to untrained or unsupervised agents and potential fraudsters, necessitating an effective authentication mechanism to secure transactions.
Innovation Solution
A two-dimensional authentication grid, generated using a cryptographic hash of a control number, is printed on financial product packaging, requiring consumers to provide specific symbols to authenticate, thereby enhancing fraud protection.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If agents are hired by third parties to establish money transfer sites, then the money transfer system can expand its operational reach and accessibility, but the risk of fraud increases due to lack of training and supervision
Solution Approach 1:
The authentication grid is pre-generated and printed on the financial product packaging before the customer receives it. This preliminary action ensures that the security mechanism is already in place and cannot be added or modified later, preventing fraudsters from obtaining authentication credentials through unauthorized means.
Solution Approach 2:
The authentication grid acts as an intermediary security layer between the control number and the fund redemption process. Instead of directly using the control number for authentication, the system requires the customer to correctly identify symbols on the grid based on challenged coordinates, adding a mediating verification step that prevents direct exploitation of control numbers.
2Ease of operation
If a simple authentication method is used, then the ease of operation is improved, but the security against fraud is reduced
Solution Approach 1:
The authentication method transitions from a one-dimensional control number to a two-dimensional grid of symbols. This dimensional change allows the system to encode more information and provide stronger security while maintaining ease of use, as customers only need to look at visual coordinates and identify corresponding symbols rather than memorize or complexly process authentication data.
Solution Approach 2:
The system changes the authentication parameter from a simple secret string (control number) to a spatial arrangement of symbols on a grid. This parameter change enables the system to challenge users with coordinate pairs (row, column) and verify their ability to correctly identify the corresponding symbol, providing both security and ease of operation.
3Ease of operation
If the control number is printed on the packaging, then the ease of operation is improved, but the vulnerability to fraud increases as fraudsters can easily obtain it
Solution Approach 1:
The authentication process is segmented into multiple independent components: the control number printed on packaging, the authentication grid printed on packaging, and the verification system. Even if fraudsters obtain the control number, they cannot complete authentication without also obtaining and correctly using the authentication grid, which is designed to be resistant to unauthorized reproduction.
Solution Approach 2:
The authentication grid is pre-generated and bound to the control number through cryptographic hashing before the customer receives the packaging. This preliminary cryptographic binding ensures that the control number and authentication grid work together as a unified security system, and the control number alone is insufficient for fraud without the corresponding grid.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
The authentication grid provides an additional layer of security, ensuring that only the rightful owner of the financial product can redeem funds, thereby reducing fraud and increasing transaction security.
Implementation Method 1
generating a hash value from the control number using a cryptographic function; generating an authentication grid using characters from the hash value
Data Source
AI summary
Embodiments of the invention provide a fraud deterrent for retail money transfer or stored value product. In some embodiments, a two dimensional grid of number, letters, characters, and/or symbols can be provided retail packaging or cards that can be used as a second authentication factor in order to redeem funds. In some embodiments, methods and/or systems are also provided that associate control numbers with the grid, create the grid, provide the grid on packaging, and/or use the grid to authenticate a customer.