Proximity-Based Mobile Payment Authorization via Anti-Fraud Service
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Solution Overview
Problem
As mobile payments become more widespread, there is a growing risk of fraudulent transactions due to the potential for stolen payment credentials being used to impersonate the legitimate user, especially when the authenticating device is not in proximity to the point of sale (POS) module.
Innovation Solution
A system that authorizes mobile payment transactions based on the proximity of an authorizing client device associated with the user to the POS module, using an anti-fraud service that compares the location information of the client device to the POS module to determine the legitimacy of the transaction, and requests additional authentication if they are not in proximity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If mobile payment credentials are transmitted to POS module for convenient payment processing, then ease of operation is improved, but security against fraudulent transactions deteriorates
Solution Approach 1:
The patent introduces an anti-fraud service as an intermediary component between the payment processing system and the POS module. This service receives payment requests, verifies device proximity to the POS module, and only allows credential transmission when the device is confirmed to be in proximity, thereby maintaining convenience while adding security validation
Solution Approach 2:
The system performs preliminary verification of device proximity to the POS module before allowing payment credentials to be transmitted. The anti-fraud service checks location information and proximity status in advance of the actual payment transaction, preventing fraudulent transactions before credentials are exposed
2Productivity
If payment credentials are stored on mobile device for quick transactions, then productivity is improved, but vulnerability to credential theft increases
Solution Approach 1:
The anti-fraud service acts as a security intermediary that monitors and controls the usage of stored payment credentials. It validates that the mobile device is in proximity to the POS module before allowing credential transmission, creating a security layer between the stored credentials and potential thieves
Solution Approach 2:
The system implements feedback mechanisms where the anti-fraud service continuously monitors device proximity status and provides real-time validation. If the device moves away from the POS module or unusual patterns are detected, the service can block credential transmission, creating a feedback loop that responds to changing security conditions
Data Source
AI summary
A method for authorizing a mobile payment transaction is provided that is based on device locations. The method includes receiving, by a server, a request from a point of sale (POS) device to authorize a payment transaction involving a payment facilitating device. In an embodiment, the request includes payment information of the payment transaction and location information of the POS device. When the request is received, an authorizing client device for the payment transaction is identified based on the payment information from the payment facilitating device. The request to authorize the payment transaction is granted when it is determined that the authorizing client device is located within a predetermined distance from the POS device.