Transaction Authentication System for Fraud Detection
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current systems fail to effectively identify and prevent fraudulent transactions carried out by website owners or authorized entities in online shopping, as they lack the capability to analyze and validate monetary transactions for authenticity.
Innovation Solution
A method that scans websites to identify products and their costs, calculates sets of monetary transactions based on product combinations and shipping costs, and generates an authentication score for each transaction using data from previous transactions, including factors like shipping addresses, discount coupons, and product sequences to flag suspicious activities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If current systems are used for online shopping transactions, then the system is simple and easy to operate, but it cannot identify and prevent fraudulent transactions carried out by website owners or authorized entities
Solution Approach 1:
The system performs preliminary actions by scanning the website to identify products, prices, and shipping costs before transactions occur. It calculates expected monetary transactions in advance and establishes authentication scores based on product combinations, shipping addresses, and transaction patterns before fraud can happen, enabling proactive detection rather than reactive response
Solution Approach 2:
The patent introduces an intermediary authentication mechanism that sits between the buyer and seller. This intermediary system validates transactions by comparing actual transactions against calculated expected transactions and authentication scores, acting as a mediator that doesn't require changing the core e-commerce system but adds a layer of security validation
2Measurement precision
If transaction validation is performed using multiple data points and calculations, then authentication accuracy improves, but processing time and computational resources increase
Solution Approach 1:
The validation process is segmented into distinct components: scanning website data, calculating expected transactions for different product combinations, determining authentication scores based on multiple factors (product combinations, shipping addresses, transaction sequences), and comparing actual transactions against these pre-calculated values. This segmentation allows each component to be optimized independently and enables parallel processing
3Reliability
If the system analyzes multiple factors including product combinations, shipping addresses, and transaction sequences, then fraud detection capability improves, but system complexity increases
Solution Approach 1:
The system creates a universal authentication mechanism that handles multiple fraud detection scenarios through a single framework. The same core logic validates different types of fraud patterns (unauthorized product combinations, suspicious shipping addresses, abnormal transaction sequences) using consistent authentication score calculations, making the system multi-functional without requiring separate specialized systems for each fraud type
Data Source
Figure 1
Figure 2
Figure 3
AI summary
A system and method for authenticating a monetary transaction may include scanning a website to identify a plurality of products sold at the website and a respective plurality of costs of the products; calculating a set of monetary transactions based on a respective set of combinations of products; receiving details of a monetary transaction and generating an authentication score for the transaction based on relating data in the monetary transaction to data in the set of monetary transactions.