Smartcard Actuation Sequence Verification for Fraud Prevention
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Solution Overview
Problem
The increasing use of contactless smartcards for financial transactions poses significant security risks, including eavesdropping, card theft, cloning, and 'Card not present' fraud, which existing security measures have not adequately addressed.
Innovation Solution
Implementing an additional security step involving a personalized actuation sequence that must be entered by the cardholder before any data exchange can occur with a point of sale terminal, using a smartcard equipped with a memory for storing the actuation sequence and a checking module to authorize transactions based on its match.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If contactless smartcard transactions are implemented, then ease of operation and hygiene are improved, but security risks increase due to eavesdropping, card theft, and cloning
Solution Approach 1:
The system performs preliminary authentication by requiring the user to input a passcode or biometric data before the smartcard becomes active for contactless transactions. This preliminary action ensures that only authorized users can enable the contactless function, preventing unauthorized use while maintaining the ease of contactless operation.
Solution Approach 2:
The patent introduces an intermediary authentication layer (passcode input device or biometric sensor) that mediates between the user and the smartcard system. This intermediary verifies the user's identity before allowing contactless transactions, adding security without significantly impacting the ease of operation.
2Ease of operation
If spending limits are increased on smartcards, then user convenience is improved, but security risks and potential loss increase
Solution Approach 1:
The system dynamically adjusts spending limits based on the authentication method used. Biometric authentication enables higher spending limits compared to passcode authentication, allowing the system to adapt security measures to the specific transaction context while maintaining user convenience for legitimate high-value transactions.
Solution Approach 2:
The patent changes the security parameter (authentication method) to allow variable spending limits. By implementing different authentication mechanisms with varying security levels, the system can permit higher spending limits for more secure authentication methods while maintaining lower limits for less secure methods, balancing convenience and security.
3Reliability
If additional security measures are implemented, then security is improved, but device complexity increases
Solution Approach 1:
The smartcard system is designed with multi-functionality, supporting both contactless and contact-based transactions, as well as multiple authentication methods (passcode and biometric). This universal design allows the same device to serve multiple security levels and transaction types without requiring separate systems, managing complexity through consolidation.
Solution Approach 2:
The system incorporates self-service authentication capabilities where the user's own biometric data or passcode serves as the security mechanism. This self-service approach eliminates the need for external security verification systems, reducing overall device complexity while maintaining high security standards.
4Reliability
If actuation sequence verification is added, then security is improved, but transaction time increases
Solution Approach 1:
The actuation sequence verification is performed as a preliminary action before the actual transaction. By requiring users to input their passcode or biometric data in advance, the system secures the transaction without significantly impacting the actual payment processing time, as the authentication occurs before the contactless transaction is initiated.
Solution Approach 2:
Once the actuation sequence is successfully verified and the smartcard is activated, subsequent contactless transactions can proceed rapidly without repeated authentication. The system allows users to skip through multiple transactions using the same authenticated session, reducing overall transaction time while maintaining security through the initial verification step.
Data Source
AI summary
Provided are systems, methods and devices for increasing security in a financial transaction when using a smartcard. The system includes a smartcard for payment in a financial transaction, the smartcard having a memory for storing a first actuation sequence for confirming a user's identity; wherein the smartcard has a checking module that authorizes the transaction only when a second actuation sequence is identical to the first actuation sequence stored in the memory; a point of sale terminal for recording payment details from the smartcard once the financial transaction is authorized and transmitting a request for payment through a network to a financial institution according to the payment details; and a financial institution authorizing computer for allowing recording of an actuation sequence on the smartcard and making payment to the owner of the point of sale terminal once the transaction is authorized, according to the payment details.