Tokenized Authentication System for Secure Financial Transactions
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing authentication and financial services systems expose personal identity data to risks of compromise during transaction processing, leading to liability for businesses and security concerns for consumers, particularly with the transmission of sensitive information like Social Security Numbers and credit card numbers.
Innovation Solution
Implementing a system that separates private identity data from financial transactions, using reference numbers instead of actual identification numbers for authentication, and employing secure protocols to control access and protect data, allowing for secure authentication and financial services without exposing sensitive information.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If personal identity data is transmitted during authentication and financial services processing, then authentication and financial transactions can be completed, but businesses are exposed to excessive liability and consumers face risk of private identity data compromise
Solution Approach 1:
The patent introduces a token as an intermediary element that replaces direct transmission of sensitive personal identity data. The token contains encrypted or hashed representations of identity information and financial attributes, allowing authentication and transaction processing without exposing the actual personal data. This mediator approach enables the system to verify identity and process financial services while keeping the original sensitive data protected in secure storage locations.
2Productivity
If businesses hold private consumer data in their databases, then they can process financial transactions, but they incur costly expenditures for security and protection of consumer information
Solution Approach 1:
The patent extracts sensitive personal identity data from business databases and stores it in separate secure locations. Instead of businesses holding credit card numbers, social security numbers, and other private information, the system extracts these data elements and stores them in secure repositories accessible only through controlled authentication processes. This extraction eliminates the need for businesses to invest in expensive security infrastructure while maintaining transaction processing capabilities through the use of tokens and encrypted references.
3Ease of operation
If sensitive financial information like credit card numbers is recorded in business systems, then credit card transactions can be processed, but the cost of indemnifying and discovering fraudulent credit activity is expensive
Solution Approach 1:
The patent creates cryptographic copies or hashed versions of sensitive financial information that can be used for transaction verification without containing the actual usable data. Instead of storing and processing real credit card numbers, the system uses tokenized copies that preserve the necessary functionality for authorization and verification while being useless for fraud. This copying approach maintains ease of transaction processing while eliminating the costs associated with fraud detection and indemnification.
Data Source
AI summary
Devices, interfaces, methods, and systems for secure authentication of identification data and financial attributes services. An example method for transmitting data using at least one server includes receiving a data sequence that includes a resource locator, wherein the locator comprises at least one reference code, wherein the code is identifiable to one or more persons, and wherein the sequence comprises a data record. The method may also include determining an address from the reference code and transmitting a modified sequence of data that comprises the address to another server.