Mobile Remittance Verification via Intermediary Mediator
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Solution Overview
Problem
Current remittance transaction methods, particularly those using web interfaces by funds transfer agencies like Western Union and MoneyGram, are plagued by high fraud rates due to the lack of effective verification processes, leading to chargebacks and financial losses.
Innovation Solution
A computer-implemented method utilizing a mobile platform to verify remittance transactions through a mobile PIN or other identifiers, ensuring the authenticity of the user before proceeding with the transaction, which includes downloading mobile software applications, secure element data, and NFC-enabled handsets for enhanced security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If web interfaces are used for remittance transactions, then ease of operation is improved, but reliability deteriorates due to high fraud rates
Solution Approach 1:
The patent introduces a mobile device as an intermediary between the user and the remittance system. The mobile device receives transaction approval notifications and sends verification responses, acting as a trusted mediator that cannot be easily compromised. This resolves the contradiction by maintaining ease of web-based operation while improving reliability through the mobile device's secure verification process.
Solution Approach 2:
The system performs preliminary verification by sending approval notifications to the mobile device before completing the remittance transaction. The user must verify the notification on their mobile device prior to fund transfer, preventing fraudulent transactions before they occur. This preliminary action maintains operational ease while significantly improving transaction reliability.
2Device complexity
If traditional verification processes are used, then device complexity is reduced, but reliability deteriorates due to chargeback fraud
Solution Approach 1:
The mobile device performs self-service verification by automatically receiving approval notifications and enabling the user to verify transactions directly on their device. This eliminates the need for complex centralized verification systems while improving reliability, as the verification occurs at the user's own device rather than relying on potentially compromised web interfaces.
Solution Approach 2:
The verification process is segmented into separate components: the web interface handles transaction initiation, the mobile device handles verification, and the funding agency handles fund transfer. This segmentation allows each component to remain relatively simple while the combined system achieves high reliability through distributed verification.
3Reliability
If mobile verification is implemented, then reliability is improved, but device complexity increases
Solution Approach 1:
The mobile device serves as a simple intermediary that receives notifications and sends verification responses. The complexity is minimized by using standard mobile messaging protocols rather than implementing complex cryptographic verification directly on the device. This maintains reliability while keeping the mobile device's role relatively simple.
Solution Approach 2:
The system uses copies of transaction data sent to the mobile device for verification purposes. Rather than requiring the mobile device to process complex transaction information, it receives simplified notification copies that contain only the essential verification elements, reducing device complexity while maintaining reliability.
Data Source
AI summary
This invention provides a system and method for reducing the fraud related to remittance transactions initiated at web portals. In one embodiment, mobile technologies that are available to consumers can be used to reduce fraud associated with remittance transactions. For example, a funding agency computer that enables a remittance transaction can request that a mobile platform computer verify a customer with a mobile personal identifier. The mobile platform computer can request the mobile personal identifier from a customer via the customer's mobile handset device. The mobile platform computer can determine whether the identifier received from the customer's mobile handset device matches the mobile personal identifier stored for the customer. If the mobile platform computer is able to verify the customer, the mobile platform computer can provide a verification confirmation message to the funding agency computer.