Dynamic Itinerary Profiling for Fraud Prevention
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Solution Overview
Problem
Existing credit and debit card fraud prevention systems are inadequate in addressing cross-border transactions, as they burden cardholders with excessive data entry and lack flexibility to handle changing travel itineraries, leading to potential unauthorized use due to delayed cancellation processes.
Innovation Solution
A dynamic travel itinerary-driven profiling method that automatically sets transaction parameters based on a cardholder's travel reservations, using a system that integrates with travel reservation systems to validate geographic and time-based authorization records, thereby preventing unauthorized transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If known fraud prevention systems require cardholders to specify usage criteria, then card usage can be limited, but the burden on cardholders to enter data becomes excessive
Solution Approach 1:
The system automatically retrieves travel itinerary data from external reservation systems and uses it to set transaction parameters without requiring cardholder input. The cardholder simply enrolls in the service, and the system self-configures the fraud prevention rules based on retrieved itinerary information.
Solution Approach 2:
The system pre-loads authorized geographic locations and time periods into the transaction processing system before travel begins. By retrieving itinerary data in advance and pre-configuring the authorization rules, the system eliminates the need for real-time data entry during transactions.
2Reliability
If cross-border card cancellation is used, then fraudulent use time is extended, but additional processing and transmission time is required
Solution Approach 1:
Instead of waiting for cancellation requests to be processed after fraud is detected, the system pre-configures geographic and temporal authorization rules before travel begins. This prevents fraudulent transactions in advance rather than reacting after the fact, eliminating the time delay associated with cancellation processing.
3Reliability
If static transaction limits are imposed on cards, then fraud can be prevented, but the system lacks flexibility to handle changing travel itineraries
Solution Approach 1:
The system dynamically adjusts transaction authorization parameters based on the cardholder's travel itinerary. Geographic locations and time periods are configured to match the itinerary, allowing automatic adaptation when travel plans change. The system retrieves updated itinerary data and adjusts authorization rules accordingly.
Solution Approach 2:
The system serves multiple functions: it prevents fraud by imposing transaction limits while simultaneously adapting to changing travel itineraries. By using travel itinerary data as the basis for both fraud prevention rules and flexibility adjustments, a single mechanism achieves both objectives.
Data Source
AI summary
A method and system for preventing unauthorized card transactions via dynamic itinerary-driven profiling. Authorization record(s) including authorized geographic locations and authorized periods of time are received from a travel reservation system (TRS). The authorization record(s) identify an itinerary specified by a travel booking(s) purchased via the TRS using a debit or credit card. The itinerary specifies that the cardholder is scheduled to be in the authorized geographic locations for the authorized periods of time. In response to receiving a request for an authorization of a card transaction, a location and date associated with the card transaction are retrieved from the request. The card transaction is rejected based on a determination that the retrieved location is not within the authorized geographic locations and/or the retrieved date is not within the authorized periods of time. A notification of the retrieved location and retrieved date is logged and displayed.