Wireless Account Risk Scoring Using Multiple Location Data
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Solution Overview
Problem
Wireless subscriber accounts are increasingly vulnerable to fraudulent activities, particularly through SIM swap attacks, necessitating enhanced security measures to prevent unauthorized access and transactions.
Innovation Solution
A system and method utilizing multiple location data points, including current and historical device locations, to calculate a risk score for transactions, requiring secondary authorization or denial based on thresholds to enhance security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If multiple location data points are used to calculate risk scores, then security against fraudulent transactions is improved, but system complexity increases
Solution Approach 1:
The risk assessment system is segmented into multiple independent location data points (current location, home location, dominant location, store location) and multiple risk indicators. Each location is evaluated separately and contributes to the overall risk score, allowing the system to manage complexity through modular assessment of individual factors rather than treating security as a monolithic problem.
Solution Approach 2:
The system transitions from single-point location verification to multi-dimensional spatial analysis by incorporating current location, home location, dominant location, and store location across different geographical dimensions. This dimensional expansion provides richer security context without requiring a complete redesign of the authentication framework.
2Reliability
If location-based risk assessment is implemented, then fraudulent transactions are reduced, but processing time increases
Solution Approach 1:
The system performs preliminary actions by pre-establishing and storing location data (home location, dominant location) and calculating risk scores in advance. When a transaction occurs, the system only needs to retrieve pre-computed location information and calculate distances rather than performing comprehensive real-time analysis, thereby reducing processing time while maintaining fraud prevention capabilities.
Solution Approach 2:
The system replaces complex real-time location verification mechanisms with pre-computed risk scores based on historical location data. Instead of performing comprehensive location validation during each transaction, the system uses pre-established location patterns and pre-calculated risk assessments to quickly determine authentication requirements.
3Reliability
If secondary authorization is required for high-risk transactions, then account security is improved, but user convenience deteriorates
Solution Approach 1:
The system applies local quality by tailoring authentication requirements to specific transaction contexts and location scenarios. Rather than uniformly requiring secondary authorization for all transactions, the system selectively applies enhanced security only when location-based risk indicators are triggered, allowing standard transactions to proceed with minimal friction while maintaining high security where needed.
Solution Approach 2:
The system changes the parameter of authentication requirements based on calculated risk scores. When location data indicates low risk, the system uses standard authentication methods. When location data indicates high risk (such as transactions from locations far from home or dominant locations), the system automatically adjusts to require secondary authorization, thereby adapting security levels to actual risk conditions rather than applying uniform requirements.
Data Source
AI summary
Systems and methods are provided for identifying risky transactions using multiple location data points. Locations of the wireless device, wireless provider's store, dominant location of the wireless device, home location of the wireless device, and the person requesting a transaction with the wireless account of the wireless device may be determined. Using selected distances between these various location data points, a risk score is calculated. A high risk score might trigger the need for secondary authorization for the transaction. An even higher score might lead to the denial of the transaction.