IoT Device Presence Authentication for Financial Transactions
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Solution Overview
Problem
Current security mechanisms for financial transactions are inadequate in preventing fraudulent activities, as they primarily rely on payment cards without sufficient verification of the user's location or environment.
Innovation Solution
The use of Internet of Things (IoT) device presence to authenticate cardholders for financial transactions by detecting and verifying the presence of specific devices associated with the user, thereby enhancing security through location-based verification.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment card security mechanisms are used, then the ease of operation is maintained, but the reliability of transaction authorization deteriorates due to insufficient verification of user location or environment
Solution Approach 1:
The patent embeds multiple authentication layers within the transaction authorization process. The detection device scans for IoT devices, the processing device verifies identifiers against target identifiers, and the system cross-references device presence with location data. These nested verification steps operate within the existing payment card infrastructure, adding security without requiring a complete system overhaul.
Solution Approach 2:
The patent introduces a detection device as an intermediary component between the payment card and the transaction authorization system. This mediator scans for and identifies IoT devices in proximity to the user, providing additional verification data to the transaction processing device without directly complicating the user interface or payment flow.
2Reliability
If IoT device presence verification is implemented, then the reliability of transaction authorization improves, but the device complexity increases due to additional detection and verification mechanisms
Solution Approach 1:
The detection device autonomously scans for and identifies IoT devices in the user's proximity without requiring active user participation. The system automatically compares detected device identifiers against stored target identifiers and determines device presence based on location data, all without user intervention. This self-service approach maintains ease of operation while enhancing security.
Solution Approach 2:
The system performs preliminary scanning and identification of IoT devices before the actual transaction authorization occurs. By pre-verifying device presence and comparing identifiers in advance, the system prepares authentication data that streamlines the subsequent authorization process, preventing delays during the actual transaction.
3Reliability
If multiple verification steps are added to authenticate cardholders, then the reliability of financial transaction authorization improves, but the loss of time in transaction processing increases
Solution Approach 1:
The detection device continuously scans for and monitors IoT devices in the user's proximity, maintaining an up-to-date record of device presence. This continuous monitoring eliminates the need for repeated scanning during each transaction, as the system can quickly verify current device status against previously collected data, reducing verification time while maintaining security.
Solution Approach 2:
The system pre-loads and stores target identifiers for known IoT devices associated with the user. During transaction processing, the detection device quickly compares detected device identifiers against this pre-stored list, and the processing device rapidly determines device presence by comparing current location data with stored location information. This preliminary preparation of authentication data significantly accelerates the verification process.
Data Source
AI summary
Examples of the disclosure enable a user to be authenticated and/or a financial transaction to be authorized. In some examples, one or more identifiers associated with one or more detected devices in an area proximate to the detection device are received. It is determined whether at least one identifier of the one or more identifiers corresponds with one or more target identifiers, and whether a device presence of at least one device associated with the at least one identifier satisfies a predetermined threshold. The user is authenticated upon determining that the device presence satisfies the predetermined threshold. Aspects of the disclosure provide for a processing system to authenticate a user and/or authorize a financial transaction in an environment including a plurality of devices.