Rewards Authentication System Preventing Fraud via Segmentation
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Solution Overview
Problem
Existing rewards programs face challenges in efficiently managing and authenticating rewards information across multiple accounts, leading to issues such as reward pooling, fraud, and customer inconvenience in tracking and redeeming rewards.
Innovation Solution
A system, method, and computer-accessible medium that receives purchase information and financial account details to generate rewards information and authentication tokens, verifying identities and updating rewards accounts securely, while requiring associated financial accounts for earning and redeeming rewards.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Quantity of substance
If a single rewards number is shared with many purchasers to pool rewards, then significant rewards can be earned, but the cost to the rewards issuer becomes significantly higher
Solution Approach 1:
The system segments the rewards tracking function by creating individual rewards accounts linked to each purchaser's financial account, preventing pooling while maintaining individual reward tracking. Each purchaser has their own segmented account rather than sharing a single rewards number.
Solution Approach 2:
The system introduces an intermediary authentication mechanism using financial account verification and authentication tokens. This intermediary layer prevents unauthorized pooling by requiring verified identity proof before rewards can be earned or transferred.
2Measurement precision
If multiple rewards accounts are monitored separately, then each account can be tracked accurately, but it becomes very difficult to keep track of every rewards account at every merchant
Solution Approach 1:
The system merges multiple rewards account tracking functions into a single centralized platform. Purchasers can access and monitor all their rewards accounts across different merchants through one unified interface, eliminating the need to separately track each account while maintaining accurate measurement.
Solution Approach 2:
The system creates a universal rewards management platform that works across multiple merchants and reward programs. A single system provides multi-functional capabilities including tracking, authentication, and management of diverse rewards accounts, making the system adaptable to various merchant requirements.
3Ease of operation
If digital storage of rewards numbers is implemented, then rewards information can be stored conveniently, but users still need to separately access each rewards account to determine rewards earned
Solution Approach 1:
The system combines multiple rewards account access functions into a single unified digital interface. Users access all their rewards information through one consolidated account rather than separately accessing each merchant's rewards system, eliminating redundant access steps.
Solution Approach 2:
The system implements automated feedback mechanisms that provide real-time updates on rewards earned across all accounts. Users receive notifications and dashboard updates showing current rewards status without needing to manually check each account, reducing the time required to monitor rewards.
Data Source
AI summary
An exemplary system, method and computer-accessible medium can include receiving information regarding a purchase by a person, receiving financial account information regarding a financial account associated with the person that was used to fund the purchase, generating rewards information associated with the purchase, generating an authentication token(s) based on the financial account information, sending the rewards information and the authentication token(s) over a network, and receiving a confirmation, over the network, that a rewards account associated with the person has been updated.