Location-Bound Virtual Card Numbers for Fraud-Resistant Transactions

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Solution Overview

Problem

There is an increase in fraud, spam, and theft related to fraudulent access and use of certification sources such as credit cards, where unauthorized parties capture and use payment mechanism information, posing security risks.

Innovation Solution

The generation and use of virtual certification numbers (VCNs) that are location-specific, associating them with geographical locations, and authorizing transactions based on location verification, ensuring secure access and authentication without transmitting actual PANs, using machine learning models for risk analysis and database updates.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If location-based VCN verification is implemented, then transaction security is improved, but system complexity increases

Engineering Contradiction:

Improvetransaction securityVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent introduces a VCN (virtual certification number) as an intermediary between the actual PAN and the transaction processing system. The VCN is location-specific and acts as a mediator that verifies transactions without exposing the actual payment information, thereby enhancing security while managing system complexity through abstraction

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent segments the certification process by creating location-specific VCNs for different geographical locations. Each VCN is generated based on a PAN and a specific location identifier, dividing the single certification system into multiple location-based virtual certifications, which improves security through granular control

Inventive Principle:

Principle #1Segmentation

2Ease of operation

If actual PANs are transmitted for transactions, then transaction processing is simplified, but security risk increases

Engineering Contradiction:

Improvetransaction processingVSAvoidsecurity risk

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The patent creates virtual copies (VCNs) of the actual PANs for transaction processing. These VCNs replicate the functionality of real payment cards but contain no actual sensitive information. The copying mechanism allows normal transaction processing while eliminating security risks associated with transmitting real PANs

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The patent employs disposable VCNs that are generated for specific locations and transactions. These virtual certification numbers are temporary and location-bound, replacing the need to repeatedly transmit actual PANs. Each VCN is essentially a single-use or limited-use credential that eliminates long-term security vulnerabilities

Inventive Principle:

Principle #27Cheap short-living objects (Disposable)

Data Source

PatentUS12574731B2Systems and methods for location based virtual certification number use

Publication Date: 2026.03.10 CAPITAL ONE SERVICES LLC

AI summary

Systems and methods include secure virtual certification number (VCN) use, and include receiving a VCN generation request comprising a primary account number (PAN) and a location identifier, generating a VCN based on the PAN, the VCN being associated with a geographical location corresponding to the location identifier, receiving a VCN use request from an external entity, the VCN use request comprising the VCN, receiving a use location data associated with the VCN use request, comparing the use location data to the geographical location associated with the VCN, and providing one of a VCN use authorization or a VCN use denial based on comparing the use location data to the geographical location.