Risk-Adjusted Indicator System for Transaction Verification
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Solution Overview
Problem
Existing transaction systems face challenges in accurately assessing and managing the risk that users pose to relying parties across various transactions, as current risk assessments are often transaction-specific and do not account for broader user risks.
Innovation Solution
A relying party risk-adjusted indicator generation system that uses a computing device to receive user requests, generate one-time transaction identifiers, access user data, and create risk signifiers based on transaction history and other factors, ultimately generating a relying party risk-adjusted indicator for each transaction.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If traditional transaction-specific risk assessment is used, then the assessment process is simple, but the accuracy of risk evaluation is insufficient and does not account for broader user risks
Solution Approach 1:
The risk assessment system is segmented into multiple independent modules: user identification module, transaction-specific risk assessment module, broader user risk assessment module, and integrated risk indicator generation module. This segmentation allows the system to handle complex multi-dimensional risk evaluation while maintaining manageable system architecture and clear functional boundaries.
Solution Approach 2:
The system performs preliminary action by conducting broader user risk assessment in advance of specific transaction evaluation. User profiles and risk indicators are pre-calculated and stored, so when a transaction occurs, the system can quickly retrieve and integrate this pre-assessed information with transaction-specific factors to generate comprehensive risk indicators efficiently.
2Reliability
If comprehensive user data is collected for risk assessment, then the risk management effectiveness is improved, but the data processing time and computational resources increase
Solution Approach 1:
The system performs preliminary risk assessments and generates user profiles in advance, storing them for quick retrieval. When a transaction occurs, the system retrieves pre-calculated broader risk indicators and combines them with transaction-specific factors, significantly reducing real-time processing time while maintaining comprehensive risk evaluation.
Solution Approach 2:
The system dynamically adjusts the weight and relevance of different data parameters based on transaction context and user history. Not all data points are processed with equal intensity - the system adapts parameter importance to match the specific risk scenario, optimizing computational resources while maintaining assessment accuracy.
3Adaptability or versatility
If dynamic risk indicators are generated for each transaction, then the adaptability to different transaction types is improved, but the computational load increases
Solution Approach 1:
The system pre-calculates broader user risk indicators and stores them in user profiles before specific transactions occur. During transaction processing, it retrieves these pre-computed indicators and combines them with transaction-specific factors, avoiding redundant calculations and reducing real-time computational energy consumption while maintaining dynamic adaptability.
Solution Approach 2:
The system creates a universal user profile structure that can serve multiple transaction types and relying parties. The broader risk indicators are computed once and reused across different transactions and transaction types, eliminating redundant computations and reducing overall energy consumption while maintaining versatility across diverse transaction scenarios.
Data Source
AI summary
Provided is a method including receiving, by a user device, a request from an identity service to approve communicating a user proof-of-identity to a relying party. A user of the user device is prompted to request a one-time transaction identifier based on the request. Based on a first input from the user, the user device requests the one one-time transaction identifier from the identity service. In response to the request for the one-time transaction identifier, the user device receives the one-time transaction identifier from the identity server and displays the one-time transaction identifier on a first user device screen. The user inputs the one-time transaction identifier on a second user device screen and the user device communicates the one-time transaction identifier to the identity service. In response to receiving the at least one inputted one-time transaction identifier, the relying party determines whether to approve or deny a transaction.