Interaction Cryptogram Validation for Secure Peer-to-Peer Transfers
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Solution Overview
Problem
Peer-to-peer transactions are vulnerable to man-in-the-middle attacks, where fraudsters intercept and alter transaction messages to divert payments to themselves, compromising security and authenticity.
Innovation Solution
A system that generates and verifies cryptograms using information from both parties involved in a transaction, ensuring the authenticity of the interaction and integrity of the transaction details by validating the cryptograms with cryptographic keys, thereby preventing fraudulent alterations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If peer-to-peer transactions are enabled without cryptographic validation, then the transaction process is simple and fast, but the system becomes vulnerable to man-in-the-middle attacks and fraud
Solution Approach 1:
The system performs preliminary cryptographic validation by generating and verifying cryptograms before the actual transaction occurs. The first party generates a cryptogram based on transaction details and receiver information, and the system verifies this cryptogram against the actual transaction execution, ensuring security measures are in place before potential fraud can occur
Solution Approach 2:
The system introduces cryptographic cryptograms as an intermediary element between the transaction initiation and execution phases. This cryptogram acts as a mediator that carries authentication information, allowing the system to verify transaction integrity without directly exposing sensitive account credentials or enabling complex multi-party authentication
2Reliability
If the system validates both party cryptograms and digital signatures, then transaction authenticity and integrity are ensured, but the validation process time increases
Solution Approach 1:
The validation process is segmented into distinct phases: first party cryptogram validation, second party cryptogram validation, and digital signature verification. Each phase handles specific authentication requirements independently, allowing the system to validate multiple security layers without requiring all validations to complete simultaneously, thus reducing overall validation time while maintaining comprehensive security
3Productivity
If a single cryptogram validates both party accounts, then the process becomes more efficient, but the cryptogram must incorporate more complex multi-party information
Solution Approach 1:
The system merges the authentication requirements of both parties into a single integrated cryptogram validation mechanism. The first party cryptogram incorporates receiver information and transaction details that enable validation of both the sender's and receiver's authentication, effectively combining multiple validation functions into one efficient process that reduces the number of separate validation operations needed
Data Source
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AI summary
A method for validating an interaction is disclosed. A first interaction cryptogram can be generated by a first device using information about a first party to the interaction and a second party to the interaction. A second interaction cryptogram can be generated by a second device also using information about the first party to the interaction and the second party to the interaction. Verifying each cryptogram can validate that the interaction details have not been changed, and that both the first party and second party legitimately authorized the interaction.