Dynamic Verification Token for Location-Based Fraud Prevention
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Solution Overview
Problem
Current methods for verifying customer identity in location-based transactions are vulnerable to fraud, as they rely on static identification methods that can be hacked or stolen, leading to unauthorized access and potential financial losses.
Innovation Solution
A dynamic verification token is generated based on real-time characteristics of the requestor user device, such as location and time, which is encrypted and decrypted by the provider user device to ensure that the service is only provided to the authorized customer, thereby preventing fraudulent activities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If static identification methods are used for verifying customer identity, then the verification process is simple and easy to implement, but the system becomes vulnerable to fraud and unauthorized access
Solution Approach 1:
The patent applies dynamics by transitioning from static identification methods to dynamic verification tokens that change over time. The verification token is generated dynamically based on real-time characteristics of the user device (such as location, time, and device identifiers), making it impossible to reuse or predict. This dynamic approach resolves the contradiction by enhancing security through complexity while maintaining usability through automated token generation and validation.
Solution Approach 2:
The patent changes the parameters of the verification system by introducing time-based and location-based variables into the verification token generation process. Instead of using fixed identification data, the system incorporates changing parameters (timestamp, geographic location, device state) to create verification tokens that are valid only for specific contexts. This parameter transformation strengthens security without requiring complex manual verification procedures.
2Reliability
If dynamic verification tokens with time limits are implemented, then fraud prevention is improved, but the verification process takes more time
Solution Approach 1:
The verification system performs self-service by automatically generating, validating, and expiring verification tokens without requiring manual intervention. The server automatically creates the verification token based on user device characteristics, and the provider device automatically validates it against the stored data. This automation reduces the time loss by eliminating manual verification steps while maintaining strong fraud prevention through dynamic token validation.
Solution Approach 2:
The system performs preliminary action by pre-generating and storing verification tokens along with their associated metadata (time limits, location constraints) before the actual service transaction occurs. This preliminary preparation allows for rapid verification during the transaction without requiring time-consuming real-time analysis, thus reducing verification time while maintaining security through pre-established validation criteria.
3Object-affected harmful factors
If verification tokens are made valid only within specific time frames and locations, then unauthorized access is reduced, but the system complexity increases
Solution Approach 1:
The verification token acts as an intermediary element that mediates between the user device and the service provider. It encapsulates all the security constraints (time validity, location requirements, device characteristics) in a single data structure that can be easily validated. This intermediary approach reduces system complexity by centralizing the verification logic in one component rather than requiring multiple separate validation systems for time, location, and security checks.
Data Source
AI summary
An example device may include one or more processors to receive a request for a service from a requestor user device; provide transaction information associated with the service to a provider user device, where the transaction information may include location information corresponding to a location at which the service may be provided; obtain verification information from the requestor user device based on an interaction associated with the requestor user device or the provider user device at the location, where the verification information may include one or more characteristics of the requestor user device; generate a verification token based on the one or more characteristics of the requestor user device; and provide the verification information to the provider user device to permit the provider user device to verify the requestor user device, based on receiving the verification information and obtaining the verification token from the requestor user device.