Partial Card Number Authentication for Fraud Reduction
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Solution Overview
Problem
Online banking authentication relying on usernames and passwords poses a significant risk of fraud, particularly for high-value transactions, as it can be easily compromised.
Innovation Solution
A system and method that uses a partial payment card number associated with a cardholder to authorize transactions, where the computer server authenticates the cardholder by requesting an authentication credential when a high-risk transaction is detected, using a database with clusters uniquely associated with each cardholder, and verifies the cardholder using the partial payment card number and additional credentials like expiration date and card security code.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If username and password authentication is used for online banking, then ease of operation is improved, but security and reliability deteriorate due to fraud risk
Solution Approach 1:
The patent segments the payment card number into a partial card number (first portion) and a unique account number (second portion). The partial card number is used for authentication purposes, while the unique account number is stored in the database. This segmentation allows the system to use a simplified authentication mechanism (improving ease of operation) while maintaining secure authentication (improving reliability) by linking the partial card number to the unique account number in the database.
2Reliability
If partial payment card number is used for authentication, then security is improved, but device complexity increases due to database cluster requirements
Solution Approach 1:
The patent creates a universal authentication mechanism where the partial payment card number serves multiple functions: it is used for authentication, it is linked to the unique account number in the database, and it maintains the connection between the payment card and the cardholder's account. This multi-functionality allows the system to achieve enhanced security without requiring overly complex additional components, as the partial card number integrates into the existing authentication flow while enabling secure verification.
3Reliability
If authentication credential request is made for high-risk transactions, then security is improved, but loss of time increases due to additional verification steps
Solution Approach 1:
The patent implements a dynamic authentication process where the system automatically determines whether to request additional authentication credentials based on the risk level of the transaction. For low-risk transactions, the system uses the partial card number alone for authentication, while for high-risk transactions, it requests additional credentials from the cardholder. This dynamic approach allows the system to maintain fast authentication for most transactions (improving productivity) while providing enhanced security only when necessary (improving reliability).
Data Source
AI summary
An authorization system includes a database, and at least one computer server in communication with the database. The database includes a plurality of database records, each including an account number and an associated card number. Each card number has fewer digits than the associated account number. The server is configured to receive, from a communications terminal, a request message that initiates a transaction with the server. The server is configured to request an authentication credential from the terminal, and in the database locate the card number that matches the received authentication credential and locate the account number that is associated with the located card number. The server is configured to request authorization of a test transaction using the account number, receive an authorization response confirming authorization of the test transaction, and authorize the initiated transaction in response to the authorization response. The test transaction is different from the initiated transaction.