Mobile Payment Interchange System Fraud Risk Assessment
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current mobile transaction systems lack secure and efficient methods for facilitating online transactions, particularly in ensuring the security and convenience of personal identification information and payment processes through mobile devices.
Innovation Solution
A system and method that utilizes a data storage facility to associate personal identification information with a mobile phone number, employing an interchange with converters to interface with various mobile communication controllers, allowing for secure payment confirmations and fund collection through telecommunication carriers, using a common format processor to assess fraud risk and transmit premium messages for payment processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If personal identification information is stored and processed in mobile transaction systems, then transaction security is improved, but the risk of fraudulent activities increases due to potential data breaches
Solution Approach 1:
The system segments personal identification information into multiple components stored in a data storage facility, processing only necessary portions during transactions. This reduces the exposure of complete sensitive data while maintaining security verification capabilities.
Solution Approach 2:
The patent introduces an interchange system with converters that act as intermediaries between mobile devices and transaction processors. This intermediary layer encrypts and protects personal identification information during transmission and processing, reducing direct exposure to fraud risks.
2Adaptability or versatility
If multiple communication protocols and controllers are supported for mobile device compatibility, then adaptability is improved, but system complexity increases due to multiple interface requirements
Solution Approach 1:
The interchange system implements universal converters that can handle multiple communication protocols (SMS, MMS, email, instant messaging) through a unified interface. This multi-functional approach allows the system to support various mobile devices and carriers without requiring separate specialized components for each protocol.
Solution Approach 2:
The patent introduces an interchange with protocol converters as intermediaries between diverse mobile communication controllers and the core transaction system. These converters translate different protocols into a common format, reducing system complexity by centralizing protocol handling rather than requiring direct integration with each protocol.
3Reliability
If real-time fraud detection is performed during transactions, then security is improved, but transaction processing time increases due to additional verification steps
Solution Approach 1:
The system performs preliminary fraud detection by analyzing personal identification information and transaction patterns before completing the transaction. Risk assessment is conducted in advance using stored data, allowing legitimate transactions to proceed quickly while flagging suspicious ones for further review.
Solution Approach 2:
The patent implements feedback mechanisms where transaction outcomes and fraud detection results are fed back into the system to refine future risk assessments. This learning process improves detection accuracy over time, reducing false positives that would otherwise increase processing time.
Data Source
AI summary
Systems and methods are provided to improve security of payment transactions via mobile communications. In one aspect, a system includes an interchange having a common format processor and a plurality of converters to interface with a plurality of different controllers of mobile communications. The converters are configured to communicate with the controllers in different formats and to communicate with the common format processor in a common format for the confirmation of payment requests, made via mobile phones. The common format processor is to determine a risk of a payment request being fraudulent based on the personal identification information associated with a mobile phone and, after the payment request is confirmed and when the risk is below a threshold, to communicate one or more premium messages to the mobile phone to collect funds to fulfill the payment request.