Homomorphic Computation System for Encrypted Account Validation
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Solution Overview
Problem
Conventional payment processing networks face challenges in providing real-time indications of account availability for financial transactions, leading to delays in fraud detection and increased computational loads due to the inability to expose confidential customer data to unauthorized parties.
Innovation Solution
Implementing privacy-preserving homomorphic computations on encrypted data to validate account availability without accessing sensitive information, using a distributed computing system that encrypts and decrypts account identifiers, allowing real-time verification of account status without exposing sensitive data.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional payment processing networks access confidential customer data to validate account availability, then real-time fraud detection can be performed, but data privacy and security are compromised
Solution Approach 1:
The system segments the validation process into two independent parts: (1) generating encrypted account identifiers from account data without exposing the original data, and (2) validating these encrypted identifiers against a database of unavailable accounts. This segmentation allows fraud detection to proceed while maintaining data privacy, as the confidential customer data never leaves the customer's financial institution in plaintext form.
Solution Approach 2:
The system introduces encrypted account identifiers as an intermediary element between the customer's account data and the validation database. These identifiers serve as a mediator that carries the necessary validation information without exposing sensitive customer data. The encrypted identifiers can be processed by the validation system while the original confidential data remains protected at the customer's institution.
2Object-affected harmful factors
If account validation is performed in real-time without exposing confidential data, then data privacy is maintained, but computational complexity increases due to encryption and decryption operations
Solution Approach 1:
The system performs preliminary encryption of account identifiers at the customer's financial institution before transmission to the validation system. By encrypting the data in advance, the computational burden of encryption is shifted to the customer's system, and the validation system only needs to perform decryption and comparison operations, reducing overall computational complexity in the validation process.
3Speed
If encrypted account identifiers are generated and validated through a distributed system, then real-time validation is achieved, but system complexity and communication overhead increase
Solution Approach 1:
The system extracts only the essential validation information (encrypted account identifiers) from the customer's account data, separating it from the confidential customer information. This extraction allows the validation process to proceed using only the necessary data elements, reducing communication overhead and simplifying the distributed system architecture by eliminating the need to transmit or process unnecessary confidential data.
Data Source
AI summary
The disclosed exemplary embodiments include computer-implemented apparatuses and methods that validate confidential data based privacy-preserving homomorphic computations involving encrypted data. For example, an apparatus may receive, from a first computing system, encrypted data that includes a first encrypted value representative of at least one of first account data or an element of cryptographic data. Based on the first encrypted value and on second encrypted values, the apparatus may generate encrypted residual values representative of second account data associated with one or more reference accounts, and the apparatus may request and receive a decrypted residual value associated with each of the encrypted residual values from a second computing system. The apparatus may transmit the decrypted residual values to the first computing system, which may validate the first account data based on at least the decrypted residual values and perform operations associated with the validated first account data.