Cryptographic Pattern Matching for Fraud Detection

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Solution Overview

Problem

Current fraud prevention systems in electronic access transactions are inefficient due to the need for multiple authentication procedures, which deter legitimate users, and fail to verify merchant compliance, allowing rogue merchants to engage in fraudulent behavior.

Innovation Solution

A method that uses cryptographic patterns generated from device information and base station identifiers to verify the presence of a user's portable communication device at a merchant location, reducing the need for additional authentication and ensuring merchant compliance through pattern matching during transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If multiple authentication procedures are implemented to prevent fraud, then transaction security is improved, but user convenience deteriorates

Engineering Contradiction:

Improvetransaction securityVSAvoiduser convenience

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The system uses the user's own portable communication device to perform authentication functions. The device automatically generates cryptographic patterns and communicates with the transaction system, eliminating the need for manual password entry or multiple authentication steps by the user.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

A transaction processing system acts as an intermediary between the user's portable communication device and the merchant system. This intermediary verifies cryptographic patterns and coordinates authentication, reducing the burden on the user while maintaining security.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If merchant registration processes are required for fraud prevention, then system control is improved, but system complexity deteriorates

Engineering Contradiction:

Improvesystem controlVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The merchant system automatically receives and verifies cryptographic patterns from the transaction processing system without requiring manual registration. The merchant's base station identifier is used directly in the verification process, eliminating the need for pre-registration and reducing system complexity.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The registration process is extracted from the system by using the merchant's existing base station identifier directly in cryptographic verification. This eliminates the need for a separate registration database and process, simplifying the overall system architecture.

Inventive Principle:

Principle #2Taking out (Extraction)

3Reliability

If cryptographic verification is performed for each transaction, then fraud detection is improved, but transaction processing time increases

Engineering Contradiction:

Improvefraud detectionVSAvoidtransaction processing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system generates and transmits cryptographic patterns to the transaction processing system in advance of the actual transaction. This preliminary action allows the verification process to be pre-positioned, reducing the time required during the actual transaction processing.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

Manual or complex multi-step authentication procedures are replaced with automated cryptographic pattern verification. The system uses automated generation, transmission, and verification of cryptographic patterns, which is faster and more efficient than traditional authentication methods.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS20240403863A1Multi-device authentication process and system utilizing cryptographic techniques

Publication Date: 2024.12.05 VISA INTERNATIONAL SERVICE ASSOCIATION

AI summary

In a system for verifying transactions, when a user with a portable communication device nears a resource provider location, the portable communication device provides an indication to a transaction processing system of its proximity to the location. The portable communication device then provides a universally unique identifier (UUID) of a base station of the resource provider to the transaction processing system, which generates a hash using the UUID and a primary account number (PAN) of a portable transaction device that is associated with the portable communication device. When the user conducts a transaction with the portable transaction device at the provider, the provider generates a separate hash from the UUID and the PAN and sends the hash to the transaction processing system. A match between the hashes is taken into account as a positive indicator that the transaction is not fraudulent and the resource provider is complying with the system.