Virtual Account Transaction Security via Segmentation

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Solution Overview

Problem

Users face risks of account vulnerability and fraudulent exploitation when submitting sensitive account details for online transactions, as these details can be intercepted and stolen, making it difficult to detect and recover from fraudulent activities.

Innovation Solution

A method and system utilizing virtual accounts linked to physical accounts, where the unique identifier of the virtual account is used for transactions without disclosing the physical account details, with individual controls and validation processes to enhance security and reduce fraudulent exploitation.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If users submit sensitive account details for online transactions, then transactions can be completed, but account vulnerability increases and fraudulent exploitation risk increases

Engineering Contradiction:
Improvetransaction completionVSAvoidaccount vulnerability
Core Design Contradiction:
Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The account system is segmented into virtual accounts (with unique identifiers used in transactions) and physical accounts (kept secure). This segmentation allows transaction functionality while protecting the sensitive physical account details from exposure during online transactions.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

Virtual accounts act as intermediaries between users and the payment system. Instead of exposing physical account details directly, the system uses virtual account identifiers as a mediator to facilitate transactions while keeping the actual account information secure and hidden.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Object-affected harmful factors

If physical account details are kept secure using virtual accounts, then account vulnerability is reduced, but transaction processing complexity increases

Engineering Contradiction:
Improveaccount vulnerabilityVSAvoidtransaction processing
Core Design Contradiction:
Object-affected harmful factorsVSDevice complexity

Solution Approach 1:

Virtual accounts serve multiple functions: they enable transaction processing, maintain security by hiding physical account details, and provide a layer for monitoring and control. This multi-functionality reduces the need for separate systems for each purpose.

Inventive Principle:
Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system creates virtual copies of account functionality without exposing the original physical account details. These virtual account identifiers can be used freely in transactions while the actual account information remains secure, effectively copying the necessary transactional capabilities without the risks.

Inventive Principle:
Principle #26Copying

3Difficulty of detecting and measuring

If virtual accounts are used with individual controls, then fraudulent exploitation detection is improved, but system complexity increases

Engineering Contradiction:
Improvefraudulent exploitation detectionVSAvoidsystem structure
Core Design Contradiction:
Difficulty of detecting and measuringVSDevice complexity

Solution Approach 1:

The system implements feedback mechanisms by monitoring transactions against predefined controls and requirements associated with each virtual account. When transactions comply with the controls, they are processed; when they don't comply, they are blocked. This automated feedback loop enables effective fraud detection without requiring complex manual intervention.

Inventive Principle:
Principle #23Feedback

Data Source

PatentEP3951688A1A method, system and computer program product for instructing a transfer from an account
Publication Date: 2022.02.09 MASTERCARD INT INC
  • EP3951688A1 patent drawingFigure 1~2
  • EP3951688A1 patent drawingFigure 3
  • EP3951688A1 patent drawingFigure 4~5

AI summary

A method of instructing a transfer from an account is provided, the method comprising: receiving, using communication circuitry, a message requesting a transfer from a first account, the first account being identified by a unique identifier; determine, using processing circuitry, that the first account is a virtual account on the basis of one or more characteristics of the unique identifier; wherein, when it is determined that the first account is a virtual account, the method comprises: identifying, using the processing circuitry, a link between the virtual account and a physical account, and performing validation of the link; retrieving, using retrieving circuitry, data related to the virtual account from the storage related to the physical account; and instructing, using the processing circuitry, a transfer from the virtual account when the requested transfer complies with one or more requirements of the data related to the virtual account.