Digital Identity Verification With Confidence Scoring and Guarantees
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Solution Overview
Problem
There is a need for a trustworthy, comprehensive digital identity verification service with guarantees to ensure the legitimacy of parties in online transactions, particularly in peer-to-peer platforms, as existing methods like knowledge-based and biometric verification are vulnerable to fraud.
Innovation Solution
A system that provides a third-party identity verification service, utilizing a financial institution or similar entity to verify user identities, calculate a confidence score based on various data points, and offer liability insurance to platforms, reimbursing them for damages caused by fraudulent users.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If knowledge-based verification (passwords, security questions) is used, then ease of operation is improved, but reliability deteriorates due to vulnerability to phishing attacks
Solution Approach 1:
The patent introduces a trusted third-party identity verification service as an intermediary between the user and the online platform. This mediator performs comprehensive background checks, verifies identity documents, and provides confidence scores, thereby resolving the contradiction by shifting the verification burden to a specialized entity that enhances reliability without compromising ease of operation for end users
2Reliability
If possession-based verification (smartphone, OTP) is used, then reliability is improved, but device complexity increases
Solution Approach 1:
The patent creates a universal identity verification service that consolidates multiple verification methods (biometric, knowledge-based, possession-based) into a single multi-functional platform. This approach improves reliability by offering diverse verification options while reducing overall system complexity through centralization and standardized processes
3Reliability
If biometric verification (fingerprint, facial recognition) is used, then reliability is improved, but ease of operation deteriorates due to technical requirements
Solution Approach 1:
The patent enables users to perform biometric verification themselves through their personal devices without requiring specialized equipment or technical assistance. The system automatically captures and processes biometric data, making the process self-service oriented and thereby maintaining ease of operation while achieving high reliability through accurate biometric matching
4Reliability
If comprehensive identity verification is implemented, then reliability is improved, but loss of time increases due to extensive data collection and analysis
Solution Approach 1:
The patent performs comprehensive identity verification in advance before the user engages in transactions on the platform. By conducting thorough background checks, document verification, and risk assessment beforehand, the system establishes reliable user profiles that can be quickly referenced during actual transactions, thereby resolving the contradiction between comprehensive verification and time efficiency
Data Source
AI summary
Various systems and methods for managing digital identity verification are described herein. A digital identity verification system is configured to receive an electronic indication of a transaction from a client device, the transaction being for a rental or purchase of an asset, the electronic indication including consumer identifying information to identify a consumer of the asset, business identifying information to identify a business from whom the consumer is renting or purchasing the asset, and transaction details; determine, based on the consumer identifying information that the consumer is a customer of the digital identity verification system; and in response to determining that the consumer is a customer of the digital identity verification system: determine, based on the consumer identifying information, the business identifying information, and the transaction details, a probability that the consumer is legitimate, the probability represented as a confidence score; determine, based on the confidence score, a fee for a monetary reimbursement for damage to the asset due to the consumer not being legitimate; and transmit an electronic response to the client device, the electronic response including the fee.