Mobile Loyalty System with Motion Element Fraud Prevention
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Solution Overview
Problem
Existing customer loyalty programs face issues such as forgotten or lost cards, cumbersome coupon redemption, and lack of fraud prevention in mobile redemption systems, leading to adverse impacts on customers and merchants.
Innovation Solution
A mobile loyalty system using a smartphone or mobile device to generate and redeem QR codes, with integrated fraud prevention mechanisms, such as motion elements on the screen, to prevent fraudulent redemption and allow rewards to be redeemed within specific time limits or geographical areas.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a mobile device is used to store and redeem loyalty rewards, then customer convenience is improved and physical cards are eliminated, but fraud prevention capability deteriorates due to lack of built-in mechanisms
Solution Approach 1:
The patent embeds multiple security mechanisms within the mobile loyalty reward system. A motion element (such as an accelerometer or gyroscope) is nested within the mobile device to detect physical movement. This motion detection capability is integrated into the reward redemption process, creating a layered security approach where the motion element acts as an additional verification layer beyond simple digital storage, thereby preventing fraud while maintaining convenience
Solution Approach 2:
The motion element serves as an intermediary verification mechanism between the customer and the loyalty system. When redemption is attempted, the system requires confirmation of legitimate possession through motion detection (such as shaking the device or specific movement patterns). This intermediary step validates that the device is physically held by the authorized user, adding fraud prevention without compromising the mobile convenience
2Reliability
If QR codes are generated for each customer transaction, then fraud prevention is improved through unique codes, but system complexity increases due to generation and scanning requirements
Solution Approach 1:
Instead of generating unique QR codes for each transaction, the patent uses a single static QR code that is copied and displayed on the mobile device screen during redemption. The motion element verification replaces the need for dynamically generated unique codes, simplifying the system while maintaining security through the motion-based authentication layer
Data Source
AI summary
A mobile loyalty system for preventing fraudulent redemption of a reward is disclosed which comprises a mobile communication device having a screen and configured to run a mobile application for obtaining a code representative of a visit to a merchant, the mobile application for transmitting information associated with obtaining the code representative of the visit to the merchant and for receiving information associated with a reward to be redeemed at the merchant, the screen for displaying the reward to be redeemed and a motion element for preventing fraudulent redemption of the reward.