Proximity-Based OTP Authentication Against SIM Swap Fraud
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Solution Overview
Problem
Wireless subscriber accounts are increasingly vulnerable to fraudulent access through SIM swap attacks and phishing schemes, where cybercriminals hijack mobile phone numbers to gain control of user accounts, leading to potential financial loss and identity theft.
Innovation Solution
Implement a proximity-based two-factor authentication system that requires a One-Time Password (OTP) to be transmitted only if the requesting device is within a certain distance threshold of the designated wireless device, with secondary authorization steps if the distance exceeds this threshold, using location determination methods like GPS, triangulation, and database queries to verify device proximity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional OTP transmission is used without proximity verification, then the authentication process is simple and fast, but the system is vulnerable to fraudulent access and SIM swap attacks
Solution Approach 1:
The system performs preliminary proximity verification by calculating the distance between the requesting device and the wireless device before transmitting the OTP. This advance check ensures that the OTP is only sent to devices in close proximity, preventing fraudulent access attempts from remote locations while maintaining a straightforward authentication flow for legitimate users.
Solution Approach 2:
The patent introduces distance calculation as an intermediary verification step between the authentication request and OTP transmission. This mediator layer adds security by verifying physical proximity without significantly complicating the user experience, as the distance check occurs automatically in the background.
2Reliability
If proximity-based verification is added to OTP transmission, then security against fraudulent access is improved, but the authentication process becomes more complex and time-consuming
Solution Approach 1:
The system calculates device proximity in advance before initiating OTP transmission, so that when a legitimate user requests authentication, the verification is already complete or can be performed rapidly. This preliminary action prevents security delays for authenticated users while still providing thorough verification when needed.
Solution Approach 2:
The patent implements a tiered approach where full proximity verification is applied selectively based on risk assessment. For low-risk scenarios with established users and devices, the system may use simplified verification, while applying full proximity checks to high-risk scenarios. This partial application of the security measure reduces overall processing time while maintaining security where most needed.
Data Source
AI summary
Systems and methods are provided for enhance Two-Factor Authentication using proximity. This may include receiving a request to perform an account transaction with an account of a wireless device requiring a One-Time Password (OTP) from a requesting device. The distance between the requesting device and the wireless device may be calculated. If the distance is at or below a first distance threshold, the OTP may be transmitted to the wireless device. If the distance is above the first threshold, secondary authorization may be required before transmitting the OTP to the wireless device. If the distance is above a second distance threshold, higher than the first distance threshold, the account transaction may be denied.