Optical Recognition for Transaction Inconsistency Detection

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Solution Overview

Problem

Existing methods fail to effectively detect fraudulent electronic transactions in a timely and accurate manner, leading to potential losses due to the rise in electronic fraud with electronic transactions.

Innovation Solution

A method utilizing optical recognition to verify the consistency of identification and payment card data by scanning and digitizing customer identification and payment card information, matching it against a database to validate the legitimacy of the transaction, thereby preventing fraudulent transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If traditional electronic transaction verification methods are used, then transaction processing is simple and fast, but fraud detection accuracy is low

Engineering Contradiction:

Improvefraud detection accuracyVSAvoidverification system complexity

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The patent replaces manual verification processes with optical recognition technology. Optical scanners capture images of identification documents and payment cards, then use optical character recognition (OCR) to automatically extract and verify data, substituting human visual inspection and manual data entry with automated optical systems to improve accuracy while managing complexity.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent creates digital copies of identification documents and payment cards through optical scanning. These optical copies are then processed through recognition algorithms to extract verification data, allowing the system to analyze multiple copies and cross-reference information without handling physical documents, thereby improving detection accuracy.

Inventive Principle:

Principle #26Copying

2Measurement precision

If optical recognition is implemented for verification, then fraud detection accuracy improves, but processing time increases

Engineering Contradiction:

Improvetransaction verification accuracyVSAvoidtransaction processing time

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The patent performs optical recognition and data extraction in advance during the verification process. By capturing and processing identification and payment card information at the point of transaction initiation, the system prepares verification data beforehand, enabling faster decision-making and reducing overall processing time while maintaining high accuracy.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent uses high-speed optical scanning and rapid character recognition to quickly capture and process verification data. The system rushes through the optical recognition phase by using optimized algorithms that can extract and validate information in minimal time, preventing the process from becoming a bottleneck while ensuring accurate fraud detection.

Inventive Principle:

Principle #21Skipping (Rushing through)

Data Source

PatentUS10769637B1System, method and computer readable storage to utilize optical recognition to detect a transaction inconsistency

Publication Date: 2020.09.08 AMERICAN EXPRESS KABBAGE INC

AI summary

A method, apparatus, and computer readable storage utilize optical character recognition to authentic a transaction. Optical character recognition is used on a physical instrument and data obtained from the optical character recognition is used to query a remote database. Identification information from the remote database is compared with data obtained from the optical character recognition to determine whether there is an inconsistency of data.