POS Transaction Security via AI Presence Prediction

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Solution Overview

Problem

Existing methods for preventing misappropriation at POS terminals are unreliable when location tracking is unavailable, as they cannot definitively determine if the user is present, leading to potential illicit transactions.

Innovation Solution

A real-time misappropriation detection and exposure assessment system using AI and neural networks to predict the likelihood of the user's presence at the POS terminal based on the last-known location and travel history of a designated mobile communication device, which may alert or automatically authorize/deny transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If location tracking is used to determine user presence at POS terminal, then transaction security is improved, but the system becomes unreliable when location tracking is unavailable

Engineering Contradiction:

Improvetransaction securityVSAvoidsystem reliability under different conditions

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The patent introduces an intermediary prediction mechanism that bridges the gap between location tracking availability and transaction security. When location tracking is unavailable, the system uses a prediction module that analyzes historical location data, travel routes, and transaction patterns to infer user presence probability, thereby maintaining security without direct location tracking

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system performs preliminary actions by continuously collecting and analyzing location data, travel routes, and transaction history before the actual transaction occurs. This pre-computation of user presence probability based on historical patterns enables the system to quickly make authorization decisions even when real-time location tracking is unavailable

Inventive Principle:

Principle #10Preliminary action

2Reliability

If real-time prediction and analysis is performed to detect misappropriation, then transaction security is improved, but processing time increases

Engineering Contradiction:

Improvemisappropriation detection accuracyVSAvoidtransaction processing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary analysis by continuously collecting location data, travel routes, and transaction history in the background before transactions occur. This pre-computation enables rapid real-time prediction during actual transactions without significant processing delays

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent replaces complex real-time mechanical location verification with an AI-based prediction system that uses historical data patterns. This substitution allows the system to make accurate misappropriation detection decisions through probabilistic analysis rather than direct real-time location tracking, significantly reducing processing time

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Measurement precision

If AI and neural networks are used to predict user presence, then detection accuracy is improved, but device complexity increases

Engineering Contradiction:

Improveuser presence prediction accuracyVSAvoidsystem complexity

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The patent implements a universal prediction module that handles multiple functions: analyzing location data, determining travel routes, predicting user presence probability, and making authorization decisions. This multi-functional approach consolidates complexity into a single AI system rather than requiring separate mechanisms for each function

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS12106306B2Real-time misappropriation detection and exposure assessment system

Publication Date: 2024.10.01 BANK OF AMERICA CORP

AI summary

Real-time prevention of misappropriation and/or exposure assessment posed by a transaction at a POS terminal, especially those transactions in which it is not possible to otherwise definitively determine that a user/transactor is present at the POS terminal. AI is relied on, such as, a neural network implementing sequence modeling, to predict the likelihood that a user/transactor is present at the POS terminal. Location of a user is tracked via a designated mobile communication device and in instances in which a location of the mobile communication cannot be identified at the time of the transaction, the invention performs analysis based at least on the last-in-time location of the mobile communication device, the user's travel route leading up to the last-in-time location of the mobile communication device and other factors to predict a likelihood that the user is located at the POS terminal. As a result of the predicted likelihood either the transaction is automatically decisioned or the user/transactor is alerted and requested to their approve or reject/deny the transaction.