Multi-Factor Authentication for Tax Filing Fraud Prevention
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing tax filing systems face challenges with fraudulent activities, inefficiencies in verification processes, and inability to authenticate tax filings securely, leading to financial losses and resource-intensive fraud detection.
Innovation Solution
A multi-factor authentication system that includes an authentication computing device storing cardholder profiles with identifiers, device information, and trusted authentication data, which generates identity challenges and compares response authentication data to determine the authenticity of users attempting to access or submit tax filings, thereby preventing fraudulent access and reducing resource allocation for fraud detection.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If multi-factor authentication is implemented, then security against fraudulent tax filings is improved, but system complexity increases
Solution Approach 1:
The patent introduces an authentication computing device as an intermediary between the revenue computing device and user devices. This mediator handles the complex multi-factor authentication processes, including generating identity challenges, collecting authentication data, and determining authentication status, thereby isolating the complexity from the core tax filing system while maintaining enhanced security.
Solution Approach 2:
The authentication system is segmented into distinct functional components: the revenue computing device that manages tax filings, the authentication computing device that handles verification, and user devices that provide authentication data. This segmentation allows each component to specialize in specific tasks, improving overall security while distributing system complexity across multiple independent modules.
2Measurement precision
If authentication data is collected from multiple sources, then fraud detection accuracy is improved, but processing time increases
Solution Approach 1:
The system performs preliminary actions by pre-establishing the authentication computing device and pre-configuring the multi-factor authentication framework before actual tax filing operations. Identity challenges are generated and authentication data collection is initiated as part of the standard filing process, allowing verification to occur concurrently with other operations rather than as a sequential bottleneck.
Solution Approach 2:
User devices automatically provide authentication data in response to identity challenges without requiring manual intervention from users. The authentication computing device autonomously collects, verifies, and processes authentication data from multiple sources, reducing both processing time and the burden on users while maintaining high fraud detection accuracy.
Data Source
AI summary
An authentication computing device stores a cardholder profile that is associated with a candidate cardholder and includes a cardholder identifier, a device identifier, payment account data, and trusted authentication data in a database system, receives an authentication request that is associated with a tax filing of the candidate cardholder and includes a filing identifier from a revenue computing device, detects the authentication request is associated with the candidate cardholder based upon the filing identifier and the cardholder profile, transmits an identity challenge requesting authentication data associated with the candidate cardholder to a user device associated with the device identifier, receives a challenge response including response authentication data from the user device, determines an authentication status associated with the authentication request based on a comparison of the response authentication data and the trusted authentication data, and transmits the authentication status to the revenue computing device.