Mobile Device Verification for Digital Pass Issuance
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Solution Overview
Problem
The challenge in the electronic credit account application process is detecting and deterring fraud, particularly in Internet-centric environments where traditional verification methods are insufficient, leading to risks of fraudulent charges and loss of credit information.
Innovation Solution
A mobile device verification process is implemented, which includes secondary and tertiary verification of the customer's contact information and device, using location-based fraud evaluation and a limited-use, time-constrained temporary credit account to reduce fraud risk, by pre-populating and verifying customer information on a credit application before providing a digital pass.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional verification methods are used in Internet-centric environments, then the application process is simple and fast, but fraud detection capability is insufficient
Solution Approach 1:
The verification process is divided into multiple independent stages: initial application submission, automated background checks, interview scheduling, in-person verification, and final approval. Each stage performs a specific function and can be completed independently, allowing comprehensive fraud detection without requiring all steps to occur simultaneously.
Solution Approach 2:
Background checks, credit history verification, and identity validation are performed automatically before the customer completes the application process. This preliminary verification of customer information establishes a baseline for fraud detection before the customer even submits their application.
Solution Approach 3:
An interview coordinator acts as an intermediary between the customer and the verification system. The coordinator schedules interviews, conducts preliminary assessments, and determines whether customers require in-person verification, thereby filtering out low-risk applications before they reach the final approval stage.
2Reliability
If multiple verification layers are implemented, then fraud risk is reduced, but processing time increases
Solution Approach 1:
The verification process dynamically adapts to each customer's risk profile. Low-risk customers with strong credit histories and verifiable identities can complete the process online without in-person verification, while high-risk customers are automatically flagged for additional verification steps. This dynamic approach ensures comprehensive fraud prevention for necessary cases while maintaining speed for low-risk applications.
Solution Approach 2:
Customers who pass automated background checks and identity verification can skip the in-person verification stage entirely. The system allows them to rush through the approval process by accepting electronic verification methods, thereby reducing processing time without compromising fraud prevention for those who need it.
3Measurement precision
If comprehensive background checks are performed, then fraud detection accuracy improves, but system complexity increases
Solution Approach 1:
The verification system automatically performs background checks, credit history analysis, and identity validation without requiring manual intervention. The system self-generates verification requests, processes responses from third-party databases, and automatically flags suspicious patterns, thereby achieving high detection accuracy while minimizing the complexity of manual verification procedures.
Solution Approach 2:
The system continuously monitors verification outcomes and uses feedback from detected fraud patterns to refine its detection algorithms. When new fraud methods are identified, the system automatically adjusts its verification criteria and prioritizes similar high-risk applications, improving detection accuracy over time without requiring manual reconfiguration of the entire verification system.
Data Source
AI summary
A system and method for mobile device verification for an electronic application before providing a digital pass to an approved customer is disclosed. The method and system receives, at a store's customer credit application computer, an application for a new account, the application including a contact information for a customer's mobile device providing, from the store's customer credit application computer, the contact information for the customer's mobile device to a verification system to authenticate the customer's mobile device providing, from a credit account provider, a text to the customer's mobile device, the text causing the customer's mobile device to be subjected to a second authentication; receiving, at the customer's mobile device, a message that includes a link to the digital pass; and utilizing the link to receive the digital pass at a mobile wallet of the customer's mobile device.