Incentive Management Platform Fraud Resistance
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Solution Overview
Problem
Current systems for verifying user eligibility for incentives associated with transaction accounts are resource-intensive and vulnerable to fraud, leading to discouraged merchant verification and increased computing resource usage.
Innovation Solution
A device that dynamically manages incentives by providing an indication of the current incentive status to merchant devices, using machine learning to determine the probability of users maintaining a transaction account status, thereby reducing resource consumption and enhancing security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional verification systems are used to check user eligibility for incentives, then incentive eligibility can be determined, but computing resource consumption increases and fraud risks increase
Solution Approach 1:
The system performs preliminary verification of user eligibility and account status before the merchant needs to provide the incentive. By pre-determining whether the user meets the required criteria and maintaining this information in advance, the system eliminates the need for resource-intensive real-time verification during the incentive dispensing process, thereby reducing computing resource consumption while maintaining fraud resistance
Solution Approach 2:
The patent introduces an intermediary verification mechanism that acts as a mediator between the user and the merchant. This intermediary system handles the complex verification logic and fraud detection, allowing the merchant to simply query the pre-verified eligibility status without performing resource-intensive verification themselves, thus reducing overall computing resource consumption while maintaining high reliability
2Measurement precision
If merchants verify user eligibility for incentives, then accurate incentive application is ensured, but computing resource usage increases
Solution Approach 1:
The system performs the accuracy-critical verification of user eligibility and account status in advance, before the merchant needs to dispense the incentive. By pre-determining and storing the eligibility status, the system ensures measurement precision for incentive application while eliminating the need for computationally intensive real-time verification at the point of dispensing
Solution Approach 2:
The system creates a copy or representation of the user's eligibility status and account information that can be quickly queried by the merchant without performing the full verification process again. This copied information maintains the necessary accuracy for incentive application while being much faster and less resource-intensive to retrieve and process
3Productivity
If users can easily activate accounts to receive incentives, then user acquisition increases, but account cancellation behavior increases leading to resource waste
Solution Approach 1:
The system provides clear feedback to users about the conditions required to maintain incentive eligibility and the consequences of account cancellation. By communicating the value and requirements of maintaining the account status, the system reduces frivolous account activations and cancellations, thereby reducing wasted computing resources while maintaining legitimate user acquisition
Solution Approach 2:
The system takes preliminary actions to prevent account cancellation by verifying and communicating the ongoing requirements for maintaining eligibility. By establishing clear expectations and providing continuous feedback about account status requirements, the system reduces the likelihood of users canceling accounts after receiving incentives, thereby preventing resource waste
Data Source
AI summary
A device may receive, from a user device, credentials for a transaction account associated with a user. The device may provide, to a merchant device, authorization information enabling access to an indication of an incentive status associated with the user and the transaction account, wherein the incentive status indicates whether an incentive is available for the user. The device may receive, from the merchant device, an incentive status request including the authorization information. The device may determine that the authorization information is valid and is associated with the transaction account. The device may determine a current incentive status for the incentive, wherein the current incentive status is based on a satisfaction of a condition associated with the transaction account. The device may provide, to the merchant device, the indication of the current incentive status for the incentive.