Synthetic Identity Detection Using Encrypted Hashes on Distributed Ledgers
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Solution Overview
Problem
The challenge of synthetic identity misappropriation, where malicious actors create deceitful identities using real and fabricated information, is difficult to detect and prevent due to the lack of secure and efficient collaboration between entities holding sensitive user data, such as banks, schools, and law enforcement agencies.
Innovation Solution
A blockchain network is established for secure information sharing among entities like credit bureaus, banks, and clinical providers, using encrypted hashes and machine learning algorithms to analyze aggregated data, identify patterns, and detect anomalies, ensuring data privacy and protection while preventing misappropriation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If entities share sensitive user data to detect synthetic identity misappropriation, then detection accuracy improves, but data security and privacy protection deteriorate
Solution Approach 1:
The patent extracts only the essential identifying features from user data to create synthetic identities in the distributed ledger, rather than sharing complete sensitive datasets. This allows anomaly detection through pattern matching on extracted features while keeping the original sensitive data localized and secure at each entity.
Solution Approach 2:
The distributed ledger acts as an intermediary that receives and analyzes synthetic identity data from multiple entities without exposing the underlying sensitive information. The ledger enables collaborative detection while maintaining data privacy through its cryptographic and decentralized architecture.
2Reliability
If multiple entities collaborate to analyze user data, then synthetic identity detection capability improves, but system complexity increases
Solution Approach 1:
The system segments the detection process into distinct components: entities generate synthetic identities locally, the distributed ledger stores and manages these synthetic identities decentralized, and anomaly detection occurs through pattern matching across the network. This segmentation allows each component to remain relatively simple while achieving collective high reliability.
Solution Approach 2:
The distributed ledger serves multiple functions simultaneously: it stores synthetic identities, enables pattern matching across entities, maintains data integrity through consensus mechanisms, and provides a decentralized architecture. This multi-functionality reduces the need for separate specialized systems for each function.
3Measurement precision
If complete user data is analyzed for anomaly detection, then detection precision improves, but computing resource consumption increases
Solution Approach 1:
The system extracts only the necessary identifying features from complete user data to create synthetic identities for analysis. This extraction reduces the volume of data that needs to be processed and transmitted across the network, thereby lowering computing resource consumption while maintaining sufficient detection precision through pattern matching on the extracted features.
Data Source
AI summary
Systems, computer program products, and methods are described herein for secured data analysis and synthetic identity detection in a distributed ledger network. The present invention is configured to receive an event for a predetermined set of occurrences, generate a first hash packet and a second hash packet, wherein the first hash packet is generated by applying a hashing engine to a first identifier, and wherein the second hash packet is generated by applying the hashing engine to a second identifier, generate, by a distributed ledger server, a first key pair, generate, by the member of the distributed ledger network, a second key pair, encrypt a bundle using the first public key, wherein the bundle comprises the first and second hash packets, and appending the bundle to the transaction object, wherein the transaction object is distributed to the distributed ledger network.