GPS Location Verification for Transaction Security
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Solution Overview
Problem
Current transaction systems face challenges in verifying the location of a user at the time of a transaction, leading to potential fraudulent activities, where stolen credit or debit cards are used, and either the user, the retail location, or the credit card company bears the loss.
Innovation Solution
A location verification system that uses GPS information to compare the device location of a user with the transaction location, stopping the transaction if the device is not at the transaction location, and storing GPS data to confirm the user's presence at the time of the transaction.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If location verification is implemented using GPS, then transaction security is improved, but device complexity increases
Solution Approach 1:
The patent introduces a verification server as an intermediary component that mediates between the mobile device and the point-of-sale terminal. This server handles the complex GPS location verification logic, allowing the point-of-sale terminal to remain simple while still achieving secure transactions through remote location validation.
Solution Approach 2:
The system is divided into separate functional modules: a mobile device with GPS capability, a verification server that processes location data, and a point-of-sale terminal that initiates transactions. This segmentation allows each component to be optimized independently, with the verification server bearing the computational burden of location validation.
2Reliability
If location verification is implemented using GPS, then fraudulent transactions are reduced, but loss of time increases
Solution Approach 1:
The system performs location verification before the transaction is completed. The verification server validates the mobile device's location against the expected transaction location in advance, and only if the location is verified does the system proceed to authorize the transaction. This preliminary verification prevents fraudulent transactions from consuming transaction processing time.
Solution Approach 2:
When location verification fails, the system immediately rejects the transaction without proceeding to the payment authorization step. This skipping of the verification step for failed locations eliminates unnecessary processing time and allows the system to quickly identify and reject fraudulent transactions.
3Measurement precision
If location verification is implemented using GPS, then transaction accuracy is improved, but ease of operation decreases
Solution Approach 1:
The mobile device automatically provides its location information through the GPS receiver without requiring user intervention. The verification server automatically compares the location with the expected transaction location and makes the verification decision without user input, making the process transparent and convenient for users while maintaining high location verification accuracy.
Data Source
AI summary
A location verification provision is implemented to determine the location of a device associated with a user at the time of an attempted transaction. The attempted transaction includes receiving user identification and/or payment information, which is associated with the device in an entry stored in a database. Location information of the device, as well as a time at each location, may also be stored in the database. To verify that the device is located at the location of the transaction, a comparison operation may be performed. If the device is located where the transaction is being processed, the transaction may be completed. Predetermined criteria may be defined to account for possible inaccuracies in location and time calculations.