Dynamic Payment Processing Time Extension for Fraud Investigation
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current payment card systems immediately cancel cards upon suspected fraud, preventing law enforcement from apprehending thieves and failing to gather evidence for prosecution.
Innovation Solution
A system that monitors suspicious transactions, performs predictive modeling to assess the risk of continued use, and modifies transaction processing times to allow additional evidence collection while notifying law enforcement, thereby balancing the cost of continued fraud with the investigative value.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If the card is immediately cancelled upon suspected fraud, then financial loss is minimized, but law enforcement cannot gather evidence and apprehend the thief
Solution Approach 1:
The system performs preliminary actions by notifying law enforcement and extending transaction processing time before the fraud is fully executed. This allows authorities to intervene and apprehend the thief while still preventing significant financial loss through proactive rather than reactive card cancellation.
2Reliability
If the card is immediately cancelled upon suspected fraud, then the user's account is protected, but the thief is rarely apprehended
Solution Approach 1:
The system introduces law enforcement as an intermediary between the fraudulent transaction and the card cancellation. By notifying authorities and extending processing time, the system maintains account protection while enabling third-party intervention that increases thief apprehension rates.
3Productivity
If transaction processing time is extended to allow evidence collection, then thief apprehension increases, but financial loss and operational efficiency decrease
Solution Approach 1:
The system extends transaction processing time as a preliminary action only when fraud is suspected, allowing law enforcement to intervene before the fraud is completed. This selective extension increases thief apprehension rates while limiting financial loss by preventing only the fraudulent portion of transactions.
Solution Approach 2:
The transaction processing time is made dynamic rather than static. The system can extend processing time when fraud is detected and revert to normal processing when no fraud is suspected, optimizing both thief apprehension rates and operational efficiency through adaptive time management.
4Loss of information
If predictive modeling is used to assess risk of continued use, then evidence collection is optimized, but system complexity increases
Solution Approach 1:
The system performs self-service by automatically analyzing transaction patterns and predicting fraud risk without requiring manual intervention. This automated predictive modeling optimizes evidence collection efficiency while managing system complexity through algorithmic rather than procedural solutions.
Data Source
AI summary
Systems, methods, and computer-readable storage media for monitoring risk levels in continuing to allow a potentially compromised payment card to continue to be used. An exemplary system can include a processor which receives a notification of unauthorized use of a card, retrieves a transaction history of authorized use of the card, and performs predictive modeling based on the transaction history based to determine a predicted transaction amount for future transactions. The system can then determine a risk level of continued use of the card and modify processing of the ongoing transaction based on the risk level. The system can then issue a risk level notification to proper authorities.