Biometric transaction system and method

• US 20040199469A1
• Filed: 03/21/2003
• Published: 10/07/2004
• Est. Priority Date: 03/21/2003
• Status: Abandoned Application

• Current Assignee: Fusion Technologies Incorporated
• Original Assignee: Fusion Technologies Incorporated
• Inventors: Barillova, Katrina A., Michalko, Robert
• Application Number:
  US10/393,884
• Publication Number:
  US 20040199469A1
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G07C 9/25 using biometric data, e.g. fingerprints, iris scans or voice recognition

Abstract

A method and system for authentication of online commercial transactions between a customer and a merchant using a computer system is provided. According to a preferred embodiment, the method comprises the steps of registering a customer, wherein the customer is given a money tag device by a communication information center (CIC) and the customer registers with the CIC a PIN, at least one registration biometric sample, and at least one customer financial account. The method may also includes a merchant registration step, wherein the merchant registers with the CIC at least one merchant financial account. In a customer identification step, the customer sends personal authentication information comprising a PIN, at least one biometric sample that is obtained from the customer'"'"'s person, and money tag ID to the CIC.

Claims

1. A method for conducting a commercial transaction comprising:

registering customers with a central unit, wherein each customer provides registration authentication information and at least one financial account to said central unit;

identifying a registered customer through said central unit by obtaining identifying authentication information from said customer and comparing said identifying authentication information with said registration authentication information for producing either a successful or failed identification;

upon a successful identification, issuing a temporary transaction code to said customer; and

conducting a transaction with a merchant using said temporary transaction code.

2. The method of claim 1, further comprising issuing to each customer a money tag device by said central unit upon registration with said central unit, wherein said identifying authentication information can be sent to said central unit using said money tag device.

3. The method of claim 2, wherein said money tag device interfaces with a customer'"'"'s computer.

4. The method of claim 2, wherein each money tag device issued to each of said customers has an associated unique money tag ID, wherein said identification authentication information from said customer comprises said unique money tag ID.

5. The method of claim 2, wherein said temporary transaction code is sent to the money tag device, and wherein said money tag device comprises a display screen for displaying said transaction code.

6. The method of claim 1, wherein said registration authentication information comprises a personal identification code, a biometric sample, or a combination thereof.

7. The method of claim 6, said personal identification code comprising a number, password, or alphanumeric combination.

8. The method of claim 1, further comprising registering merchants with said central unit wherein each of said merchants registers at least one merchant financial account.

9. The method of claim 8 wherein upon conducting said transaction between a customer and merchant, the customer'"'"'s financial account is debited, and the merchant'"'"'s financial account is credited.

10. The method of claim 1, further comprising issuing each of said customers a money tag device upon registration, each money tag device having a unique money tag ID, wherein

said registration authentication information comprises a personal identification code, a biometric sample, or a combination thereof, and wherein

identifying said customer comprises receiving from said customer, through said money tag device, said unique money tag ID, said personal identification code, said biometric sample, or a combination thereof.

11. The method of claim 1 wherein said temporary transaction code surrogates said customer'"'"'s personal authentication information while conducting said transaction.

12. The method of claim 1, further comprising offering to said customer a proposed commercial transaction, comprising transaction information, said proposed commercial transaction being offered by a merchant.

13. The method of claim 12 wherein said transaction information comprises transaction price, identification of goods, identification of services, a merchant name, a date and time related to said transaction, a location associated with said transaction, an invoice number, or a combination thereof.

14. The method of claim 13 wherein said customer indicates acceptance of said proposed commercial transaction by sending said temporary transaction code to said merchant.

15. The method of claim 14 further comprising transmitting said transaction information and said temporary transaction code, wherein said central unit verifies said temporary code.

16. The method of claim 15, wherein upon verification of said temporary transaction code, and upon verification of sufficient funds, a financial account of said customer is debited, and a financial account of said merchant is credited.

17. The method of claim 1 wherein said customer is remote from said merchant and communicates with said merchant using a computer network.

18. The method of claim 17 wherein said computer network is the Internet.

19. The method of claim 1, wherein said registration authentication information comprises a personal identification code and a biometric sample, and wherein said personal identification code is changed whenever said customer'"'"'s biometric sample is determined to have been stolen.

20. The method of claim 19 wherein said biometric sample comprises a fingerprint, hand print, voice print, retinal sample, handwriting sample, or a combination thereof.

21. The method of claim 1 wherein all electronic communication to and from the central unit is encrypted.

22. The method of claim 1 further comprising generating a database which includes identification information of individuals who have been determined as having attempted or committed fraud, wherein said individuals are denied registration.

23. The method of claim 1 wherein said temporary code substitutes said customer'"'"'s authentication information such that said transaction is completed without the need to provide customer'"'"'s personal information to said merchant, or transfer said information across a network.

24. The method of claim 1, wherein authorization and money transfer for completing the transaction is carried out by an external credit/debit network system system.

25. The method of claim 1, wherein a message indicating the success or failure of any step in the transaction is presented to said merchant and said customer.

26. A method of conducting an online transaction comprising:

receiving authentication information from a customer comprising a private code known to the customer, identification information associated with the customer and related to a token issued to the customer, and a biometric sample from said customer;

verifying said authentication information; and

providing a temporary code to said customer, said code to be used by said customer for completing a single transaction with an online merchant.

27. A method of increasing the security of online commercial transactions between a merchant and customer comprising:

storing authentication information related to the customer;

receiving authentication information through a token issued to the customer;

wherein

said authentication information is stored at a location which is operationally isolated from both the merchant and customer.

28. A method of increasing the security of online commercial transactions comprising:

providing system comprising a central unit which generates a temporary transaction code for use in conducting a transaction between a merchant and a customer, said system comprising secure transaction means;

requiring registration by said merchant and said customer as a precondition for using said system;

generating a database comprising identification information concerning individuals determined to attempted or to have committed fraud; and

denying said individual'"'"'s registration with said system.

29. A method for authentication of commercial transactions between a customer and a merchant using a computer system, the method comprising the steps of:

a. a customer registration step, wherein the customer is given a money tag device by a central unit, said money tag having a unique money tag ID, and the customer further registers with said central unit a personal identification code, at least one registration biometric sample, and at least one customer financial account;

b. a merchant registration step, wherein the merchant registers with said central unit at least one merchant financial account;

c. a customer identification step, wherein the customer sends personal authentication information comprising said personal identification code, at least one biometric sample obtained from the customer'"'"'s person using said money tag, and said money tag ID to said central unit for producing either a successful or failed identification of the customer, wherein said central unit generates and sends to said money tag a private code that surrogates customer'"'"'s personal authentication information during processing of the transaction;

d. a proposal step, wherein the merchant offers a proposed commercial transaction to the customer, the proposed commercial transaction comprising transaction data including 1s price information;

e. an acceptance step, wherein the customer signals acceptance of the merchant'"'"'s proposed commercial transaction and customer'"'"'s money tag adds to said proposed commercial transaction said private code;

f. a transmission step, wherein said transaction data including said private code is forwarded from the merchant to said central unit for verification of said private code; and

g. a payment step, wherein upon determination of sufficient resources, a financial account of the customer is debited and a financial account of the merchant is credited, wherein a commercial transaction is conducted with the customer having to use said money tag.

30. A portable device for use in conducting commercial transactions comprising:

at least one biometric scanner; and

a display screen, wherein said device is capable of interfacing with a customer'"'"'s computer for receiving and transmitting information related to a transaction, and wherein said device displays information messages on said display, such that unencrypted private information is not revealed to said customer'"'"'s computer.

31. The device of claim 30 wherein said portable device is used in a commercial transaction method wherein a customer is given a private code for use in said transaction, said private code surrogating customer'"'"'s private information.

32. The device of claim 31 wherein said unencrypted biometric data and an unencrypted private code are never revealed to said customer'"'"'s computer.

33. The device of claim 31 wherein said private code is transmitted to said customer by a central unit which authenticates said customer, and wherein the device sends encrypted authentication information to said central unit.

34. The device of claim 31 wherein said device is capable of receiving a personal identification code from said customer'"'"'s computer, and wherein said personal identification code and a biometric received from said customer are transmitted to a central unit for authenticating said customer.

35. The device of claim 34, wherein said personal identification code, said biometric, and said private code are stored on the device in RAM.

36. The device of claim 30, wherein said customer'"'"'s computer communicates with the device by sending commands and receiving results over a serial port or standard infrared IrDA port.

37. The device of claim 30 wherein the device receives and transmits information to a central unit, wherein said central unit attempts to authenticate said customer, wherein the device has a unique encryption key pair, known only to the device and said central unit.

38. The device of claim 37 wherein the device has a unique hardware identification code which is registered with said central unit, and which is transmitted to said central unit in attempting to authenticate said user.

39. The device of claim 30 further comprising:

a ROM element which stores noncritical commonly available code.

40. A device for use in conducting a commercial transaction comprising:

at least one biometric input element comprising a biometric encoding algorithm;

a display element which displays a temporary transaction code which surrogates a customers private information and is used in the transaction; and

a unique identification code associated with said device, wherein

said biometric encoding algorithm and said unique identification code are stored on the device in flash ROM, and wherein

said biometric, and said temporary transaction code are stored on the device in RAM.

41. A host or central unit which facilitates online commercial transactions between a merchant and customer comprising:

a customer database, said customer database comprising registration authentication information which is received from each customer upon registering said customer with the central unit, said registration authentication information including biometric data;

a receiving element which receives identifying authentication information from said customer, said identifying authentication information being compared to said registration authentication information for producing either a failed or successful authentication of said customer; and

an element which generates a transaction code which surrogates said the customer'"'"'s private information, and transmits said transaction code to said customer, wherein said transaction code is used by said customer for conducting a single transaction with said merchant.

42. The central unit of claim 41 wherein said customer database further includes at least one customer financial account for each registered customer.

43. The central unit of claim 41, further comprising a merchant database which includes at least one financial account for each registered merchant.

44. The central unit of claim 41 further comprising a defrauders database which has a list of known system defrauders, wherein listed defrauders are denied use of said central unit for conducting commercial transactions.

45. The central unit of claim 41 further comprising a transaction database which records system transactions.

46. A method for conducting a commercial transaction comprising:

registering an entity comprising a customer, merchant, or a combination thereof with a central unit;

issuing a certificate upon said registration, said certificate being associated with at least one key; and

conducting said transaction through said central unit, using said key for facilitating the security of said transaction, said entity being a party to said transaction.

47. The method of claim 46, further comprising filling in a demand for said certificate and generating said key through a computer operated by said entity, said central unit, an outside agent, or a combination thereof.

48. The method of claim 46, further comprising verifying the identity of said entity upon said registering of said entity.

49. The method of claim 46, further comprising checking the validity of the issued certificate by verifying that a private key generated for the certificate fits a public key in the certificate.

50. The method of claim 46 wherein the issued certificate may be renewed by generating at least one new key to replace an original key.

51. The method of claim 46 wherein the data in the issued certificate may be subsequently changed without replacing said key.

52. The method of claim 46 wherein the issued certificate may be suspended.

53. The method of claim 46 wherein a plurality of commercial transaction are conducted by a plurality of customers and merchants, further comprising checking for unusual or inconsistent transaction patterns to detect potential fraud.