Multi-Tier Tokenization Using Long-Term Tokens for Secure Transactions
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Solution Overview
Problem
Existing transaction systems face barriers due to the need for secure management of sensitive client data, fraud concerns, and regulatory compliance, particularly in environments where clients interact with multiple merchants or seek transaction reversals, leading to inefficiencies and security vulnerabilities.
Innovation Solution
Implementing a multi-tier tokenization system that includes a long-term unique random token, which can be used multiple times, along with single-use tokens, to enhance security and maintain data separation between merchants and clients, using a modular account security system to facilitate secure transactions and reversals.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a single-use token system is used for each transaction, then security is improved, but device complexity and operational complexity increase
Solution Approach 1:
The patent segments the token system into multiple hierarchical levels: long-term tokens (LTT) that remain stable and can be shared, and short-term tokens (STT) that are transaction-specific and single-use. This segmentation allows the system to maintain security through multiple token types while simplifying management by assigning different purposes to each token level, avoiding the need for completely new tokens for every interaction.
Solution Approach 2:
The system performs preliminary action by establishing long-term tokens in advance that can be reused across multiple transactions. Instead of generating new tokens for each transaction, the LTT is created beforehand and can be combined with STT for subsequent transactions, reducing the operational burden of token management while maintaining security.
2Productivity
If sensitive client data is stored with merchants for transaction processing, then transaction efficiency is improved, but data security and regulatory compliance worsen
Solution Approach 1:
The patent introduces tokens as intermediary representations that replace sensitive client data (such as account numbers) in merchant systems. The tokens act as mediators that allow merchants to process transactions efficiently without directly handling or storing sensitive information, thus maintaining both transaction efficiency and data security through a protective layer.
Solution Approach 2:
The system creates token copies that represent sensitive data without exposing the actual sensitive information. These token copies can be stored and processed by merchants for transaction purposes, while the original sensitive data remains protected in secure storage systems, allowing efficient processing without compromising security or compliance.
3Reliability
If long-term tokens are updated periodically, then security against malicious token generation is improved, but loss of time for token updates increases
Solution Approach 1:
The system implements periodic updates of long-term tokens at predetermined intervals or after a certain number of uses. This periodic action maintains security by ensuring tokens are refreshed before they can be compromised, while the predetermined schedule allows systems to prepare and distribute updated tokens in advance, minimizing disruption and time loss during updates.
Data Source
AI summary
Examples describe data security for communication systems. One example includes validating a user device using secure user data and generating a long term token for the user device, where the long term token is generated with a randomized unique token system. The method further includes receiving a transaction communication associated with a secure transaction, the transaction communication including the long term token, generating a transaction token that is different than the long term token for the transaction communication using the long term token from the transaction communication, and facilitating the secure transaction using the transaction token and the long term token.