Wireless Device Money Transfer Authentication
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Solution Overview
Problem
Online transactions face significant fraud risks due to anonymity, particularly in money transfer services, where authentication of users and funding sources is inadequate, leading to potential disputes and loss.
Innovation Solution
A system and method utilizing wireless communication devices, such as cellular phones, to associate with payment source accounts for money transfer transactions, where personal identification information is verified based on user profiles, and payment source account status is checked to authorize transactions, reducing fraud through pre-directed phone access and risk scoring.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If online money transfer services allow anonymous transactions, then ease of operation is improved, but fraud risk increases
Solution Approach 1:
The patent introduces an intermediary authentication system that mediates between the user and the money transfer service. The system uses multiple authentication factors (password, security questions, biometric data) verified by the service provider before allowing transactions, thus maintaining ease of operation while significantly reducing fraud risk through layered verification
2Reliability
If credit card authentication methods (CVV, card reader) are used, then fraud risk is reduced, but device complexity increases
Solution Approach 1:
The patent makes the wireless communication device itself multi-functional by integrating authentication capabilities directly into the device. The device can store security data, perform biometric scanning, and communicate with the service provider, eliminating the need for separate CVV cards or external card readers while maintaining strong security
Solution Approach 2:
The authentication system is self-contained within the user's wireless communication device. The device automatically provides authentication credentials and verifies user identity through built-in security features, eliminating the need for additional external authentication devices or complex manual verification processes
3Reliability
If multiple authentication factors are required, then fraud risk is reduced, but ease of operation deteriorates
Solution Approach 1:
The system performs preliminary authentication actions by pre-configuring multiple verification methods (password, security questions, biometric templates) in the user's wireless device before transactions are needed. During actual use, the device automatically sequences and executes these authentication steps, making the multi-factor process seamless and reducing the perceived complexity for the user
Data Source
AI summary
Systems and methods for performing money transfer transactions via a wireless communication device, such as a cellular phone, are provided. The wireless communication device may be associated with, or automatically linked to, at least one payment source account. The wireless communication device may be associated with at least one pre-paid payment source account. In one example, the wireless communication device is a pre-paid cellular phone and/or is associated with a pre-paid money transfer account. The wireless communication device may access a pre-directed phone number, e.g., *55, to access a money transfer service provider. Once connected to a money transfer service provider, a user may initiate a money transfer via the wireless device, which is optionally paid to a payee in-person at a money transfer service provider location.