Method and apparatus for depositing paper checks from home or office

• US 20020065786A1
• Filed: 08/03/2001
• Published: 05/30/2002
• Est. Priority Date: 11/24/2000
• Status: Abandoned Application

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Tresser, Charles P., Martens, Marco
• Application Number:
  US09/920,740
• Publication Number:
  US 20020065786A1
• Time in Patent Office: Days
• US Class Current: 705/70
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G07D 11/009 Depositing devices
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/086 by passive credit-cards adapted therefor, e.g. constructive particularities to avoid counterfeiting, e.g. by inclusion of a physical or chemical security-layer for security documents G07D7/00; for the reading of record-carriers in general G06K7/00; for the design of coded credit-cards G06K19/10
• CPC Class Codes: G07F 7/12 Card verification

Abstract

A form of paper checks, and the apparatus and method to handle them, allows deposit from home or office. The apparatus can be implemented with a Personal Computer (PC) having a secure cryptography generator (SCG) installed. The process of depositing paper checks begins by the payee endorsing a check having printed thereon encryptions in at least selected locations where information is written by a payer. The act of writing by the payee obscuring some of the encryptions. The payee then scans the endorsed check with a scanner to generate a digitized version of the check. The computer extracts from the digitized version of the check a concatenated branch number, account number and check number and a corresponding digital signature. The payee then transmits the extracted information together with the digitized version of the check for deposit. The checks a specially designed to prevent fraud such alteration of the payee, amount and multiple deposits. In addition to the encryptions imprinted on the check, a secret key and a plurality of digital signatures are generated based on the concatenated branch number, account number and check number.

Claims

1. A method of protecting a document which will be transformed into a value bearing instrument after adding additional markings to the document from fraudulent alteration of the markings comprising the steps of:

generating encryptions of a unique identifier X of the document, the unique identifier X being printed on the document; and

covering each critical field k, k=1,2,3. . . , of the document where markings are to be added with encrypted versions of X, Sign_k,0(X), where Sign_k,0(X) is a cryptographic function or family thereof which is known only to an institution which issues the document, Sign_k,0(X) being used to authenticate the document.

2. The method of protecting a document from fraudulent alteration recited in claim 1, wherein an entire area of a field k is covered with a large number of lines of fine print, the lines of fine print comprising one of several encryptions of X.

3. The method of protecting a document from fraudulent alteration recited in claim 2, wherein each critical field k of the document, in addition to being covered by the encrypted version of X, Sign_k,0(X), is covered with another encrypted version of X, Sign_k(X), where Sign_k(X) is another cryptographic function or family thereof different from the cryptographic function Sign_k,0(X) which is known to a larger number of authorized institutions for performing an initial authentication of the document.

4. The method of protecting a document from fraudulent alteration recited in claim 2, wherein each critical field k of the document, in addition to being covered by the encrypted version of X, Sign_k,0(X), is covered with another encrypted version of X, Sec_k(X), where Sec_k(X) is another cryptographic function or family thereof different from the cryptographic function Sign_k,0(X) which is known to a small group within the institution which issues the document for performing final authentication of the document

5. The method of protecting a document from fraudulent alteration recited in claim 3, wherein each critical field k of the document, in addition to being covered by encrypted versions of X, Sign_k(X) and Sign_k,0(X), is covered with a third encrypted version of X, Sec_k(X), where Sec_k(X) is another cryptographic function or family thereof different from the cryptographic functions Sign_k,0(X) and Sign_k(X) which is known to a small group within the institution which issues the document for performing final authentication of the document

6. The method of protecting a document from fraudulent alteration recited in claim 5, further comprising the step of indexing the cryptographic functions Sign_k, Sign_k,0 and Sec_k, by a number corresponding to the field k, so that each line comprises different encryptions of X such that each cryptographic function Sign_k(X), Sign_k,0(X) and Sec_k(X) is a family of different cryptographic functions.

7. The method of protecting a document from fraudulent alteration recited in claim 6, wherein the families of cryptographic functions Sign_k, Sign_k,0 and Sec_k prevent cryptographic functions which have been obscured at different places by marks added to the document from being used to reconstitute the full cryptographic function.

8. The method of protecting a document from fraudulent alteration recited in claim 1, wherein electronic deposit of a document transformed into a value bearing instrument comprises the steps of:

scanning the document with a scanner to generate a digitized version of the document; and

transmitting the digitized version of the document for deposit.

9. The method of protecting a document from fraudulent alteration recited in claim 8, wherein electronic deposit of a document transformed into a value bearing instrument further comprises the step of endorsing the document, if needed, having printed thereon encryptions in at least selected locations where markings are added to transform the document into a value bearing instrument, the act of endorsing obscuring some of the encryptions.

10. The method of protecting a document from fraudulent alteration recited in claim 8, wherein electronic deposit of a document transformed into a value bearing instrument further comprises the steps of:

extracting from the digitized version of the document the unique identifier X and a corresponding digital encryption of X, Sign_k(X), which is known to a large number of authorized institutions; and

comparing a decrypted version of Sign_k(X) to the unique identifier X as an initial authentication of the document.

11. The method of protecting a document from fraudulent alteration recited in claim 10, wherein electronic deposit of a document transformed into a value bearing instrument further comprises the steps of:

extracting from the digitized version of the document the unique identifier X and a corresponding digital encryption of X, Sign_k,0(X), which is known only to an institution that issues the document; and

comparing a decrypted version of Sign_k,0(X) to the unique identifier X as a further authentication of the document.

12. The method of protecting a document from fraudulent alteration recited in claim 11, wherein electronic deposit of a document transformed into a value bearing instrument further comprises the steps of:

extracting from the digitized version of the document the unique identifier X and a corresponding digital encryption of X, Sec_k(X), which is known to a small group within the institution that issues the document; and

comparing a decrypted version of Sec_k(X) to the unique identifier X as a final authentication of the document.

13. The method of protecting a document from fraudulent alteration recited in claim 1, wherein portions of the lines of fine print are obscured by writing added to the document when transforming the document into a value bearing instrument.

14. The method of protecting a document from fraudulent alteration recited in claim 13, wherein the document is a check and the unique identifier X is check data comprising a bank Id number, an account Id number and a check number.

15. The method of protecting a document from fraudulent alteration recited in claim 14, wherein an issuing bank chooses a first secret key Sign_k using a secure cryptographic generator (SCG), further comprising the steps of:

computing a first family of encrypted functions Sign_k(X); and

communicating the key Sign_k to banks and other authorized institutions involved in depositing of checks, the family of encrypted functions Sign_k(X) allowing the payee'"'"'s bank to perform a first authentication of the check.

16. The method of protecting a document from fraudulent alteration recited in claim 15, wherein an issuing bank chooses a second secret key Sign_k,0 using a SCG, further comprising the steps of:

computing a second family of encrypted functions Sign_k,0(X), key Sign_k,0 remaining the exclusive property of the issuing bank; and

using SCGs, communicating the key Sign_k,0 to all branches of the issuing bank where check clearing is done, the family of encrypted functions Sign_k,0(X) being used exclusively by the issuing bank and branches involved in the clearing of checks.

17. The method of protecting a document from fraudulent alteration recited in claim 16, wherein an issuing bank chooses a third secret key Sec_k which is exclusively known to a small group within the issuing bank, further comprising the step of computing a third family of encrypted functions Sec_k(X), the secret key Sec_k being used by the issuing bank as final instrument to verify the check.

18. The method of protecting a document from fraudulent alteration recited in claim 14, wherein the check is deposited by a payee electronically from a location remote from a bank or Automatic Teller Machine (ATM).

19. The method of protecting a document from fraudulent alteration recited in claim 14, wherein electronic deposit of the check by a payee comprises the steps of:

endorsing the check having printed thereon encryptions in at least selected locations where information is written by a payer, the act of endorsing by the payee obscuring some of the encryptions;

scanning the endorsed check with a scanner to generate a digitized version of the check;

transmitting the digitized version of the check for deposit to the payee'"'"'s bank.

20. The method of protecting a document from fraudulent alteration recited in claim 19, wherein electronic deposit of the check by a payee comprises the steps of:

extracting by the payee'"'"'s bank from the digitized version of the check the unique identifier X and a corresponding digital encryption of X, Sign_k(X), which is known to a large number of authorized institutions including the payee'"'"'s bank; and

comparing by the payee'"'"'s bank a decrypted version of Sign_k(X) to the unique identifier X as an initial authentication of the check.

21. The method of protecting a document from fraudulent alteration recited in claim 20, wherein electronic deposit of the check further comprises the steps of:

extracting from the digitized version of the check the unique identifier X and a corresponding digital encryption of X, Sign_k,0(X), which is known only to a bank that issues the check; and

comparing by the payor'"'"'s bank a decrypted version of Sign_k,0(X) to the unique identifier X as a further authentication of the check.

22. The method of protecting a document from fraudulent alteration recited in claim 21, wherein electronic deposit of the check further comprises the steps of:

extracting from the digitized version of the check the unique identifier X and a corresponding digital encryption of X, Sec_k(X), which is known to a small group within the bank that issues the check; and

comparing a decrypted version of Sec_k(X) to the unique identifier X as a final authentication of the check.

23. The method of protecting a document from fraudulent alteration recited in claim 19, further comprising the step of accessing a database by the payee'"'"'s bank where the unique identifier X and first encrypted function Sign_k(X) is registered to determine whether the check has been previously presented for deposit.

24. The method of protecting a document from fraudulent alteration recited in claim 19, further comprising the step of registering a check to be deposited by the payee with an SCG to prevent multiple deposits.

26. The document recited in claim 25, wherein an entire area of field k is covered with a large number of lines of fine print, the lines of fine print comprising an encryption of X.

27. The document recited in claim 26, wherein each critical field k of the document, in addition to being covered by encrypted versions of X, Sign_k0(X), is covered with another encrypted version of X, Sign_k(X), where Sign_k(X) is another cryptographic function or family thereof different from the cryptographic function Sign_k,0(X) which is known to a larger number of authorized institutions for performing an initial authentication of the document.

28. The document recited in claim 27, wherein each critical field k of the document, in addition to being covered by encrypted versions of X, Sign_k,0(X) and Sign_k(X), is covered with a third encrypted version of X, Sec_k(X) is another cryptographic function or family thereof different from the cryptographic functions Sign_k,0(X) and Sign_k(X) which is known to a small group within the institution which issues the document for performing final authentication of the document.

29. The document recited in claim 28, wherein the cryptographic functions Sign_k, Sign_k,0 and Sec_k, are indexed by a number corresponding to the field k, so that each line comprises different encryptions of X such that each cryptographic function Sign_k(X), Sign_k,0(X), Sec_k(X) is a family of different cryptographic functions.

30. The document recited in claim 29, wherein the act of adding markings to the document to transform the document into a value bearing instrument obscures some of the encryptions, the families of different cryptographic functions preventing cryptographic functions which have been obscured at different places from being used to reconstitute the full cryptographic function.

31. The document recited in claim 25, wherein the document is a check and the unique identifier X is check data comprising a bank Id number, an account Id number and a check number.

32. The document recited in claim 31, wherein the act of adding markings to the check to transform the document into a value bearing instrument obscures some of the encryptions

33. The document recited in claim 32, wherein an entire area of field k is covered with a large number of lines of fine print, the lines of fine print comprising an encryption of X.

34. The document recited in claim 33, wherein each critical field k of the document, in addition to being covered by encrypted versions of X, Sign_k0(X), is covered with another encrypted version of X, Sign_k(X), where Sign_k(X) is another cryptographic function or family thereof different from the cryptographic function Sign_k,0(X) which is known to a larger number of authorized banks and institutions for performing an initial authentication of the check.

35. The document recited in claim 34, wherein each critical field k of the document, in addition to being covered by encrypted versions of X, Sign_k,0(X) and Sign_k(X), is covered with a third encrypted version of X, Sec_k(X) is another cryptographic function or family thereof different from the cryptographic functions Sign_k,0(X) and Sign_k(X) which is known to a small group within the bank or institution which issues the check for performing final authentication of the check.

36. The document recited in claim 35, wherein the encrypted function Sign_k(X) are communicated to banks and other authorized institutions involved in depositing checks and the encrypted function Sign_k(X) allows the payee'"'"'s bank to perform a first authentication of the check.

37. The document recited in claim 36, wherein key Sign_k,0 remains the exclusive property of the issuing bank and the encrypted function Sign_k,0(X) is used exclusively by the issuing bank and branches involved in the clearing of checks.

38. The document recited in claim 37, wherein secret key Sec_k is exclusively known to the issuing bank and the encrypted function Sec_k(X) is used by the issuing bank as a final instrument to verify the check.

25. A document protecting against fraudulent alteration of markings added to the document to transform the document into a value bearing instrument, the document having printed thereon and covering each critical field k, k=1,2,3. . . , where markings are added to the document encrypted versions a unique identifier X printed on the document, Sign_k0(X), where Sign_k0(X) is a cryptographic function or family thereof which is known only to an institution which issues the document, Sign_k0(X) being used to authenticate the document.