Dynamic Token Masking for Secure Network Transactions

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Solution Overview

Problem

Existing methods for secure data transfer over networks, particularly in payment transactions and IoT systems, are vulnerable to 'man-in-the-middle' attacks, leading to potential fraud and security breaches due to the use of static tokens and insecure network links.

Innovation Solution

A method involving the generation of ultra-low value tokens for each transaction, masked using an ad hoc logic to simulate payment card data, combined with dynamic cryptograms, ensuring secure transfer over public networks by detokenizing the masked data on a trusted channel.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If static tokens are used for payment transactions, then transaction processing is simplified and can be stored for future use, but security is compromised due to vulnerability to man-in-the-middle attacks and replay attacks

Engineering Contradiction:
Improvetransaction processing simplicityVSAvoidtransaction security
Core Design Contradiction:
Ease of operationVSReliability

Solution Approach 1:

The patent transforms the static token into a dynamic token that changes with each transaction. The dynamic token is generated by combining a base token with transaction-specific parameters such as transaction ID, timestamp, and amount, ensuring that each token is unique to a specific transaction and cannot be reused for replay attacks.

Inventive Principle:
Principle #15Dynamics

Solution Approach 2:

The patent modifies the token structure by adding dynamic parameters (transaction ID, timestamp, amount) to the base token. This parameter transformation ensures that the token value changes with each transaction, preventing unauthorized reuse while maintaining the ease of token-based processing.

Inventive Principle:
Principle #35Parameter changes

2Reliability

If additional authentication steps are implemented to verify transactions, then security is improved, but transaction processing time increases and user experience is negatively affected

Engineering Contradiction:
Improvetransaction securityVSAvoidtransaction processing time
Core Design Contradiction:
ReliabilityVSLoss of time

Solution Approach 1:

The patent performs authentication and token generation in advance, before the actual transaction occurs. The dynamic token is pre-generated with embedded authentication data, allowing the transaction to be processed quickly without requiring additional verification steps at the point of sale.

Inventive Principle:
Principle #10Preliminary action

Solution Approach 2:

The patent introduces a token as an intermediary that carries authentication information. Instead of requiring direct verification between parties during the transaction, the pre-authenticated token serves as a mediator that validates the transaction quickly and securely.

Inventive Principle:
Principle #24Intermediary (Mediator)

3Ease of operation

If sensitive data is transmitted over public networks, then network accessibility and convenience are improved, but security is compromised due to potential data interception

Engineering Contradiction:
Improvenetwork accessibilityVSAvoiddata interception risk
Core Design Contradiction:
Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The patent extracts the sensitive authentication data from the transmission path by using tokens that represent the sensitive information rather than transmitting the actual sensitive data. The tokens can be safely transmitted over public networks as they do not contain the original sensitive information that could be exploited if intercepted.

Inventive Principle:
Principle #2Taking out (Extraction)

Solution Approach 2:

The patent creates a copy (token) of the sensitive data that can be transmitted safely over public networks. The token is a representation or substitute for the actual sensitive information, allowing the system to maintain accessibility while reducing the security risk of transmitting sensitive data over insecure channels.

Inventive Principle:
Principle #26Copying

Data Source

PatentEP4274164B1Method for secure transaction by masking sensitive data transmitted over a network
Publication Date: 2025.12.17 MASTERCARD INT INC
  • EP4274164B1 patent drawingFigure 1
  • EP4274164B1 patent drawingFigure 2
  • EP4274164B1 patent drawingFigure 3A

AI summary

The present invention discloses a method of processing a data transfer request securely over a network, the method comprising the steps of obtaining, by a first entity, a first token associated with sensitive data received from a user; associating the first token with a token reference and storing the token reference; sending the token reference to a second entity; requesting a second token from a second entity upon receiving a data transfer request from a third entity, wherein the second token is derived from the first token using an ad hoc logic; and processing the data transfer request using the second token.