Tag-Based Consortium for Fraud Detection
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Solution Overview
Problem
Existing methods for detecting Internet fraud and identity theft are inadequate as they rely on incomplete user information and lack comprehensive sharing of user and device data across multiple websites and networks.
Innovation Solution
A system and method that utilize a consortium of online hosts to share information about users and devices, including device identifiers and tag-based information, to identify and prevent fraudulent activities across networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a website operator relies on information gathered during previous transactions with that particular website, then the verification process is simple and straightforward, but the scope of fraud prevention is limited
Solution Approach 1:
The patent merges fraud detection capabilities across multiple websites by creating a consortium that shares device information. Multiple previously separate verification systems are combined into a unified network where device identifiers and behavioral data are shared across participating websites, enabling comprehensive fraud detection that transcends individual website boundaries.
Solution Approach 2:
The patent creates a universal fraud prevention system that serves multiple websites simultaneously. The consortium establishes a multi-functional platform where a single device identification and verification mechanism serves all participating websites, allowing each website to benefit from collective fraud detection capabilities without implementing separate systems.
2Reliability
If basic user information such as username, address, phone number, and e-mail address is collected, then the data collection process is simple, but the information can be altered, manipulated, fraudulently obtained, or simply false
Solution Approach 1:
The patent introduces device identifiers and behavioral analysis as intermediary verification mechanisms. Instead of relying directly on user-provided information that can be falsified, the system uses device-level identifiers and transactional behavior patterns as mediators to verify user identity, creating an indirect but more reliable verification path.
Solution Approach 2:
The patent replaces the mechanical collection and verification of user-provided information with an automated system that tracks device identifiers and behavioral patterns. This substitution moves from manual information verification to automated analytical verification, using computational methods to assess fraud risk based on device history and transaction patterns.
3Reliability
If a consortium of online hosts shares information about users and devices, then fraud detection capability is enhanced, but the system complexity and information management burden increases
Solution Approach 1:
The patent implements self-service mechanisms where the fraud detection system automatically collects, processes, and shares device information across the consortium without requiring manual intervention. The system autonomously identifies devices, tracks their behavior, and communicates findings to participating websites, reducing the operational burden on individual members.
Solution Approach 2:
The patent establishes feedback loops where device information and fraud detection results are continuously shared across the consortium. Participating websites receive real-time or near-real-time information about device risk profiles, enabling them to adjust their verification processes dynamically. This feedback mechanism allows the system to learn and improve collectively while maintaining ease of operation through automated information distribution.
Data Source
AI summary
The invention provides one or more consortia of networks that identify and share information about users and/or user devices interacting with the consortia. User devices may be identified, at least in part, by tag-based computer information. Computers and other devices accessing the Web carry device tags with date and time information describing when they were issued by a security tag server. A server time stamp may be inserted into time based computer tags such as a cookies indicating when they were created. Such time stamp information can be encrypted and analyzed during future attempts to access a secure network such as a customer attempting to log into an online banking account. When the time stamp information from the tag is compared to other selected information about the user, device and/or account, including but not limited to last account log-in date/time or account creation date, the invention may be used to detect suspicious activity. The invention may be use for identity-based applications such as network security, the detection of fraudulent transactions, identity theft, reputation-based communities, and law enforcement.