Dynamic Risk-Based Verification Engine for Identity Authentication

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Solution Overview

Problem

Current verification and authentication systems are inadequate for securely confirming the identity of users, especially in online transactions, as they often rely on static methods like passwords and are prone to false positives/negatives, and struggle with verifying small businesses due to limited data availability and asset constraints, necessitating a more dynamic and customizable solution that can integrate multiple data sources.

Innovation Solution

A customizable verification/authentication engine that allows organizations to control access by specifying data sources and question difficulty levels, enabling dynamic risk-based authentication and verification across various channels, integrating multiple data sources and biometric methods to ensure secure and efficient identity confirmation.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If static verification methods like passwords are used, then implementation is simple and cost-effective, but security is inadequate and prone to false positives/negatives

Engineering Contradiction:
Improveverification accuracyVSAvoidsystem complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The patent implements dynamic verification that adapts based on risk assessment. The system evaluates transaction risk factors and adjusts verification methods accordingly, transitioning from static password-based authentication to dynamic multi-factor verification when risks are detected, thereby improving reliability without requiring maximum complexity for all transactions

Inventive Principle:
Principle #15Dynamics

Solution Approach 2:

The system changes verification parameters based on risk levels. It adjusts the number and type of verification questions, data sources queried, and authentication factors required depending on the assessed risk of the transaction, allowing simple verification for low-risk cases and enhanced verification for high-risk cases

Inventive Principle:
Principle #35Parameter changes

2Measurement precision

If multiple data sources are integrated for verification, then verification accuracy improves, but system complexity and implementation cost increase

Engineering Contradiction:
Improveidentity confirmation accuracyVSAvoiddata integration complexity
Core Design Contradiction:
Measurement precisionVSDevice complexity

Solution Approach 1:

The patent segments the verification process into distinct modules that query different data sources independently. Each data source (credit bureaus, utility companies, motor vehicle departments, etc.) is accessed through separate, standardized interfaces, allowing the system to integrate multiple sources without creating monolithic complexity

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The system employs an intermediary verification engine that coordinates between multiple data sources and the user. This intermediary manages the complexity of integrating diverse data sources by providing a unified interface and standardized processes for querying, comparing, and synthesizing information from various sources

Inventive Principle:
Principle #24Intermediary (Mediator)

3Adaptability or versatility

If traditional verification methods are used, then implementation is straightforward, but they fail to effectively verify small businesses due to limited data availability

Engineering Contradiction:
Improveverification coverageVSAvoidoperational simplicity
Core Design Contradiction:
Adaptability or versatilityVSEase of operation

Solution Approach 1:

The patent creates a universal verification system that handles both individual consumers and small businesses through the same platform. The system adapts its data sources and verification methods based on the entity type, providing versatile coverage for different verification needs while maintaining a single, standardized operational interface

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

Solution Approach 2:

The verification process dynamically adapts to the verification subject. For small businesses, the system automatically adjusts to query business-specific data sources (business credit reports, utility accounts, motor vehicle registrations) rather than applying static consumer verification methods, thereby improving adaptability without complicating operational simplicity

Inventive Principle:
Principle #15Dynamics

4Reliability

If risk-based verification levels are implemented, then security against fraud improves, but user convenience may be reduced

Engineering Contradiction:
Improvefraud prevention capabilityVSAvoiduser convenience
Core Design Contradiction:
ReliabilityVSEase of operation

Solution Approach 1:

The system changes verification parameters based on assessed risk levels. For low-risk transactions, it maintains simple, convenient verification processes, while automatically increasing verification stringency for high-risk transactions. This dynamic parameter adjustment improves fraud prevention capability without unnecessarily reducing user convenience for legitimate low-risk users

Inventive Principle:
Principle #35Parameter changes

Data Source

PatentEP2074513B1Verification and authentication systems and methods
Publication Date: 2016.02.24 EQUIFAX INC
  • EP2074513B1 patent drawingFigure 1
  • EP2074513B1 patent drawingFigure 2
  • EP2074513B1 patent drawingFigure 3

AI summary

Embodiments of the present invention provide verification and/or authentication service engines that provide a customizable solution that can be "dialed" based on the risk level assigned to individual or grouped applications. The systems can also incorporate internal and external sources of data used to verify information provided by the user. It is dynamic and can pull information from a myriad of sources during the verification process, enabling credit reporting agencies (e.g., Equifax and others), FSPs, and other service providers to facilitate real-time approval and access to products and services.