Cryptology ePrint Archive: Report 2022/107

Payment with Dispute Resolution: A Protocol For Reimbursing Frauds' Victims

Aydin Abadi and Steven J. Murdoch

Abstract: An "Authorised Push Payment" (APP) fraud refers to the case where fraudsters deceive a victim to make payments to bank accounts controlled by them. The total amount of money stolen via APP frauds is swiftly growing. Although regulators have provided guidelines to improve victims' protection, the guidelines are vague and the victims are not receiving sufficient protection. To facilitate victims' reimbursement, in this work, we propose a protocol called "Payment with Dispute Resolution" (PwDR) and formally define it. The protocol lets an honest victim prove its innocence to a third-party dispute resolver while preserving the protocol participants' privacy. It makes black-box use of a standard online banking system. We evaluate its asymptotic cost and runtime via a prototype implementation. Our evaluation indicates that the protocol is efficient. It imposes only O(1) overheads to the customer and bank. Also, it takes a dispute resolver 0.09 milliseconds to settle a dispute between the two parties.

Category / Keywords: cryptographic protocols / Financial fraud, dispute resolution, blockchain, smart contracts, transparency, authorised push payment, implementation

Date: received 28 Jan 2022, last revised 28 Jan 2022

Contact author: aydin abadi at ed ac uk, s murdoch at ucl ac uk

Available format(s): PDF | BibTeX Citation

Version: 20220131:075149 (All versions of this report)

Short URL:

[ Cryptology ePrint archive ]