Dynamic Social Network Verification for Fraud Reduction
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Solution Overview
Problem
Traditional consumer identity verification methods at point of sale (POS) devices rely on static information like PIN numbers and signatures, which are prone to fraud and require manual entry, lacking dynamic and secure verification protocols.
Innovation Solution
Implementing dynamic, challenge-response protocols based on a consumer's online social network activities, using data from sites like Facebook, Myspace, Foursquare, Pinterest, and LinkedIn to determine challenge questions and responses, eliminating the need for manual entry of personal information and enhancing security by leveraging data more likely to be known by the consumer.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional static verification methods (PIN numbers and signatures) are used, then the verification process is simple to implement, but the security against fraud is weak
Solution Approach 1:
The patent transforms static verification data (fixed PINs and signatures) into dynamic verification challenges. The system generates challenge questions based on real-time social network activity data, such as recent posts, photos, or interactions, which change continuously. This dynamic approach ensures that verification data is current and difficult for fraudsters to obtain, directly improving security while maintaining operational simplicity through automated challenge generation and validation.
2Ease of operation
If manual entry of personal information is required, then the verification process is straightforward, but the transaction time increases and user convenience decreases
Solution Approach 1:
The system performs preliminary actions by continuously monitoring and storing social network activity data before verification is needed. When a transaction requires verification, the system immediately generates challenge questions from pre-collected data without requiring the user to manually enter information. The user simply selects from pre-generated response options, dramatically reducing transaction time while improving ease of operation.
Solution Approach 2:
The verification system uses the consumer's own social network activity data to generate verification challenges, eliminating the need for manual entry of personal information. The system automatically retrieves relevant data from social networks, formulates appropriate challenges, and validates responses, allowing the verification process to serve itself without requiring user effort beyond simple selection, thus reducing both transaction time and improving convenience.
3Reliability
If static verification data is used, then the system is easy to implement, but the data is more likely to be known by fraudulent users
Solution Approach 1:
The system implements continuous feedback loops by monitoring social network activity in real-time and using this data to generate verification challenges. The verification data is constantly updated based on the consumer's current social network behavior, ensuring that the most recent and accurate information is used for verification. This feedback mechanism ensures verification accuracy while maintaining data freshness, as fraudulent users cannot obtain current social network activity data that hasn't been publicly posted yet.
Data Source
AI summary
Computerized methods, systems and computer program products for determining how an identity of a consumer can be verified during a transaction involving the consumer and a merchant. Embodiments access and analyze data of an account the consumer has with an online social network to derive a challenge question response options. The social-network based challenge question and response options are presented to the consumer, and the consumer's selection of certain response options is used to confirm that the consumer is the person named on a credit card or other payment instrument or that other identification or verification information should be requested by the merchant before completing the transaction.