Transaction Risk Token Segmentation
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Solution Overview
Problem
Existing transaction systems face challenges in enhancing security, particularly as the number of tokens required for different payment channels increases, leading to potential vulnerabilities and complexities in managing millions of user accounts, and there is a need to further reduce the risk of fraudulent transactions.
Innovation Solution
The implementation of a method that generates a cryptogram using an encryption key based on the transaction type, which is used in conjunction with a token, ensuring that even if the token or encryption key is compromised, the unauthorized user must also know the specific transaction type for it to be effective, thereby enhancing security by limiting the token's and encryption key's use to specific transaction types.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If different tokens are created for different payment channels to reduce fraud risk, then transaction security is improved, but the number of tokens per account increases, leading to token management complexity and potential exhaustion of available tokens
Solution Approach 1:
The patent segments the encryption key into multiple parts, where different parts are used for different payment channels. Instead of creating separate tokens for each channel, the system divides a single encryption key into channel-specific segments, thereby maintaining security while avoiding token proliferation and management complexity.
2Reliability
If more encryption keys are provided for different transaction types, then fraud detection capability is improved, but the complexity of key management and selection increases
Solution Approach 1:
The patent performs preliminary segmentation of the encryption key into multiple parts, each associated with specific transaction types or channels, before actual transactions occur. This pre-organization allows the system to efficiently select and use the appropriate key segment without complex real-time decision-making, reducing operational complexity while maintaining strong fraud detection capabilities.
Data Source
AI summary
Embodiments of the invention provision multiple payment tokens on a communication device. The communication device may be provisioned with multiple limited use keys (LUK), each LUK being associated with a specific type of transaction. When the communication device is used for a transaction, the communication device automatically determines a type of the transaction and selects an appropriate LUK based on the determined transaction type. The selected LUK may be used to create a cryptogram, which can be used to verify the transaction.