Magnetic Secure Transmission Device Dynamic Cryptogram Generation
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Solution Overview
Problem
Magnetic stripe data is vulnerable to theft and fraud in both physical and online transactions due to its static nature, making it difficult to secure Card-Not-Present transactions and requiring frequent card replacements.
Innovation Solution
A magnetic secure transmission (MST) device converts static card data into dynamic cryptograms, such as dynamic-CVV, which can only be used once and are generated with a secret key, preventing replay attacks, and is used in conjunction with mobile devices to authenticate payments without changing existing merchant infrastructure.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If static magnetic stripe data is used for transactions, then ease of operation is improved, but security deteriorates due to vulnerability to theft and fraud
Solution Approach 1:
The patent transforms static magnetic stripe data into dynamic magnetic signals that change with each transaction. The MST device generates unique magnetic signatures for each transaction using cryptographic algorithms, ensuring that even if data is intercepted, it cannot be reused for fraud. This dynamic approach maintains ease of operation while dramatically improving security.
Solution Approach 2:
The patent changes the fundamental parameter of magnetic stripe data from static to dynamic. By using cryptographic functions that generate different magnetic signal patterns for each transaction based on transaction-specific parameters (timestamp, counter, random values), the system maintains operational simplicity while eliminating the security vulnerability of reusable static data.
2Reliability
If dynamic cryptograms are used to secure transactions, then security is improved, but device complexity increases
Solution Approach 1:
The patent introduces an intermediary MST device that handles the cryptographic complexity. The mobile device communicates transaction requests to the MST device, which performs the cryptographic operations and generates dynamic magnetic signals. This intermediary approach secures transactions through dynamic cryptograms while keeping the mobile device interface simple and user-friendly.
Solution Approach 2:
The patent replaces the mechanical/swipe-based magnetic stripe system with an electronic cryptographic system. Instead of physically swiping a static magnetic stripe, the system uses electronic generation of dynamic magnetic signals through cryptographic algorithms, substituting mechanical interaction with electronic security mechanisms that maintain ease of use.
3Productivity
If magnetic stripe data is transmitted frequently, then productivity is improved, but loss of information increases due to data theft
Solution Approach 1:
The patent treats each magnetic transaction signal as a disposable, short-lived credential. Each transaction generates a unique magnetic signal that becomes invalid immediately after use. Even if intercepted, the stolen data is useless for future transactions because new signals are generated for each transaction. This approach enables frequent transactions without compromising security.
Solution Approach 2:
The patent implements periodic generation of new cryptographic keys and magnetic signals for each transaction. Rather than reusing static data, the system periodically creates fresh transaction credentials through cryptographic functions, ensuring that each transmission is secure even as transaction frequency increases.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
This solution enhances security by making stolen card data useless for fraudulent transactions, as each dynamic cryptogram is valid for a short period and changes with each use, reducing the need for frequent card replacements and protecting both Card-Present and Card-Not-Present transactions.
Implementation Method 1
a magnetic field transmitter to transmit the card data to the POS device
Data Source
AI summary
Devices, systems, and methods for securely converting a user's existing static payment card data into dynamic card data that can be authenticated by card issuers or by a stand-in service provider, such as a payment network or processor without requiring the card issuers to make infrastructure changes. The dynamic data can be provisioned onto a magnetic secure transmission device (MST) either directly from a card issuer or using a swiper type device. Devices, systems, and methods are also disclosed for securely provisioning a dynamic card onto the MST by the card issuer. These dynamic cards may be used to transmit modified one-time-use card track data from the MST to a point of sale using a dynamic-CVV methodology to provide higher levels of security during a transaction.