Fraud Investigation System with User Verification and Affidavit Filing
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Solution Overview
Problem
The rise in credit and debit card fraud, exacerbated by merchants relaxing security standards during transactions, leads to difficulties in effectively investigating fraudulent activities.
Innovation Solution
A system comprising a device with a processor and memory that alerts users of potentially fraudulent transactions, allows them to initiate fraud claims, and guides them through a process of verifying transactions and filing reports, including presenting questions and an affidavit for electronic signing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If merchants relax security standards during transactions to improve customer experience, then ease of operation is improved, but reliability deteriorates
Solution Approach 1:
The system performs preliminary actions by notifying the user of a potentially fraudulent transaction before the transaction is completed. The notification is sent to the user's device, allowing them to verify the transaction authenticity in advance. If the user confirms the transaction is fraudulent, the system prevents the transaction from proceeding by alerting the merchant and blocking the authorization, thus maintaining both ease of operation and reliability.
2Measurement precision
If traditional fraud investigation methods are used, then measurement precision is improved, but loss of time increases
Solution Approach 1:
The system implements self-service by automatically notifying the user of a potentially fraudulent transaction and allowing them to immediately verify and report fraud through their device. This eliminates the need for time-consuming manual investigations by merchants or banks. The user themselves performs the fraud verification and reporting, providing immediate confirmation that maintains detection accuracy while dramatically reducing investigation time.
Solution Approach 2:
The system establishes a feedback loop where the user receives real-time notification of a potentially fraudulent transaction and can immediately provide confirmation or denial. This rapid feedback mechanism allows the system to quickly determine whether a transaction is fraudulent and take appropriate action, maintaining high detection accuracy while minimizing the time required for fraud investigation compared to traditional manual methods.
3Reliability
If comprehensive fraud verification procedures are implemented, then reliability is improved, but device complexity increases
Solution Approach 1:
The system extracts the complex fraud verification process from the merchant's system and relocates it to the user's device. Instead of requiring the merchant to implement complex verification procedures, the system sends a simple notification to the user's device with transaction details and a request for confirmation. The user can verify the transaction using their existing device capabilities, greatly simplifying the verification process while maintaining high reliability through direct user confirmation.
Data Source
AI summary
An apparatus comprises a memory and a processor. The memory is operable to store information associated with a user account. The processor can receive a message indicating that a transaction associated with a card has occurred and receive a first input indicating that the transaction is fraudulent. The processor can receive a second input indicating that a report should be filed and present, on a display, a plurality of questions to determine whether the card has been stolen. The processor can receive a third input indicating an answer to each of the plurality of questions and present, on the display, an affidavit. The processor can receive a fourth input indicating the affidavit has been electronically signed and present, on the display, a confirmation message indicating that the report has been filed.