Identity theft and fraud protection system and method

• US 20070083460A1
• Filed: 10/07/2005
• Published: 04/12/2007
• Est. Priority Date: 10/07/2005
• Status: Active Grant

• Current Assignee: Aura Sub, LLC
• Original Assignee: Kemesa Incorporated
• Inventors: Bachenheimer, Steven
• Granted Patent: US 8,396,747 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network 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 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A system and method for preventing personal identity theft when making online and offline purchases requires a purchaser to first subscribe and become a member user by registering and providing relevant personal identity information. Once registered, the member is assigned a user name and a password. The subscribing member'"'"'s personal identity information is then encrypted and stored at one or more highly secure locations. The ID protection system obtains a controlled use card (CUC) through a CUC issuer on behalf of the member for use to make each purchase transaction. The CUC is anonymous with respect to user (member) identity and may be a purchase-specific single-use card or a multiple-use stored value card with no traceable connection to any other financial account. When the member makes a secure online purchase, the system software enters anonymous information (i.e. not revealing the member'"'"'s real name, email address, billing information, etc.) on the merchant'"'"'s order placement screen, except in instances where the member'"'"'s real identity information is required (e.g. airline tickets). The merchant receives the completed checkout screen, obtains credit approval through a credit card association, and sends the shipping information to a shipper which independently obtains the correct shipping name and address from the ID protection system prior to shipping the purchased product(s).

Claims

1. A method for protecting against theft of personal identity information during purchase transactions, said method comprising the steps of

registering individual subscribers as members and obtaining personal identity information from each individual member, including the subscribing member'"'"'s name and account information for at least one financial account of the subscribing member;

entering the personal identity information of each subscribing member as data in a computer-based system;

encrypting the entered personal identity information data and storing the encrypted data;

issuing an anonymous card on behalf of each subscribing member for use to conduct at least one purchase transaction;

requesting credit authorization for a monetary purchase value amount to be charged against the at least one financial account of the subscribing member;

obtaining approval for the monetary purchase value amount and assigning the approved monetary purchase value amount to the issued anonymous card;

presenting the anonymous card to a merchant when the subscribing member is conducting a purchase transaction with the merchant; and

allowing the merchant to obtain credit approval and payment for the purchase transaction in an amount not exceeding the approved monetary purchase value amount and without revealing any personal identity information of the subscribing member.

2. The method as recited in claim 1 wherein said personal identity information obtained during said step of registering further includes a mailing address of the subscribing member.

3. The method as recited in claim 1 wherein said personal identity information obtained during said step of registering further includes a telephone number of the subscribing member.

4. The method as recited in claim 1 wherein said personal identity information obtained during said step of registering further includes an email address of the subscribing member.

5. The method as recited in claim 1 wherein said at least one financial account of the subscribing member is a credit card account.

6. The method as recited in claim 5 wherein said account information obtained during said step of registering includes a plurality of credit card accounts.

7. The method as recited in claim 1 wherein said monetary purchase value amount is selected by the member.

8. The method as recited in claim 5 wherein said step of requesting credit authorization for the monetary purchase value amount further comprises the step of

charging the monetary purchase value amount against the credit card account.

9. The method as recited in claim 1 comprising the further steps of

providing a recipient'"'"'s real name and real shipping address to a shipper, as specified by the member;

allowing the shipper to obtain one or more items purchased by the subscribing member during the purchase transaction from the merchant without revealing the subscribing member'"'"'s personal identity information to the merchant including the recipient'"'"'s and the subscribing member'"'"'s real names and real addresses; and

instructing the shipper to label a package containing the items purchased by the subscribing member with the recipient'"'"'s real name and real address on the label, so that the package can be shipped and delivered to the recipient'"'"'s real address.

10. The method as recited in claim 1 comprising the further steps of

providing the subscribing member'"'"'s real name and real shipping address to a shipper;

allowing the shipper to obtain one or more items purchased by the subscribing member during the purchase transaction from the merchant without revealing the subscribing member'"'"'s personal identity information to the merchant; and

instructing the shipper to label a package containing the items purchased by the subscribing member with the subscribing member'"'"'s real name and address on the label, and instructing the shipper to ship the labeled package to the subscribing member.

11. The method as recited in claim 1 wherein said purchase transaction is conducted between the subscribing member and the merchant via a global computer network and said anonymous card is virtual and is identified by an assigned temporary card number.

12. The method as recited in claim 11 further comprising the steps of

providing the subscribing member with a user name and password;

and

providing a software application for installation on a computer used by the subscribing member.

13. The method as recited in claim 12 further comprising the steps of

allowing the subscribing member to shop on a global computer network using the subscribing member'"'"'s computer having the software application installed therein;

instructing the subscribing member to enter the subscribing member'"'"'s user name and password when conducting the purchase transaction with the merchant via the global computer network; and

entering anonymous information in an order placement screen of the merchant on behalf of the subscribing member to avoid revealing any unnecessary personal identity information of the subscribing member to the merchant.

14. The method as recited in claim 13 further comprising the steps of

establishing an anonymous email address on behalf of the subscribing member;

providing the anonymous email address to the merchant;

receiving email communications from the merchant at the anonymous email address;

forwarding email communications from the merchant to the subscribing member at the subscribing member'"'"'s real email address;

receiving email communications from the subscribing member via the subscribing member'"'"'s real email address; and

forwarding email communications from the subscribing member to the merchant via the anonymous email address without ever revealing the subscribing member'"'"'s real email address to the merchant.

15. The method as recited in claim 1 wherein the purchase transaction conducted between the subscribing member and the merchant is a card present transaction.

16. The method as recited in claim 15 further comprising the steps of

providing an anonymous card in physical form to the subscribing member for use in conducting one or more card present purchase transactions;

assigning the authorized monetary purchase value amount to an anonymous account associated with the anonymous card;

allowing the subscribing member to present the anonymous card to the merchant when conducting the card present purchase transaction without revealing the subscribing member'"'"'s personal identity information to the merchant;

allowing the merchant to obtain credit approval and payment for the card present purchase transaction up to the assigned monetary purchase value amount; and

debiting the merchant payment against the anonymous account to reduce the assigned authorized monetary purchase value amount.

17. A method for protecting against theft of personal identity information during purchase transactions, said method comprising the steps of

registering individual subscribers as members and obtaining personal identity information from each individual member, including the subscribing member'"'"'s name and account information for at least one financial account of the subscribing member;

entering the personal identity information of each subscribing member as data in a computer-based system;

encrypting the entered personal identity information data and storing the encrypted data;

issuing an anonymous controlled use card on behalf of each subscribing member for use to conduct at least one purchase transaction;

assigning a temporary controlled use card number to the issued anonymous controlled use card;

requesting credit authorization for a monetary purchase value amount to be charged against the at least one financial account of the subscribing member;

obtaining approval for the monetary purchase value amount and assigning the approved monetary purchase value amount to the issued anonymous controlled use card;

presenting the anonymous controlled use card number to a merchant when the subscribing member is conducting a purchase transaction with the merchant; and

allowing the merchant to obtain credit approval and payment for the purchase transaction in an amount not exceeding the approved monetary purchase value amount and without revealing any personal identity information of the subscribing member.

18. The method as recited in claim 17 wherein said personal identity information obtained during said step of registering further includes a mailing address of the subscribing member.

19. The method as recited in claim 17 wherein said personal identity information obtained during said step of registering further includes a telephone number of the subscribing member.

20. The method as recited in claim 17 wherein said personal identity information obtained during said step of registering further includes an email address of the subscribing member.

21. The method as recited in claim 17 wherein said at least one financial account of the subscribing member is a credit card account.

22. The method as recited in claim 21 wherein said account information obtained during said step of registering includes a plurality of credit card accounts.

23. The method as recited in claim 17 wherein said monetary purchase value amount is selected by the member.

24. The method as recited in claim 21 wherein said step of requesting credit authorization for the monetary purchase value amount further comprises the step of

charging the monetary purchase value amount against the credit card account.

25. The method as recited in claim 17 comprising the further steps of

providing a recipient'"'"'s real name and real shipping address to a shipper, as specified by the member;

allowing the shipper to obtain one or more items purchased by the subscribing member during the purchase transaction from the merchant without revealing the subscribing member'"'"'s personal identity information to the merchant including the recipient'"'"'s and the subscribing member'"'"'s real names and real addresses; and

instructing the shipper to label a package containing the items purchased by the subscribing member with the recipient'"'"'s real name and real address on the label, so that the package can be shipped and delivered to the recipient'"'"'s real address.

26. The method as recited in claim 17 comprising the further steps of

providing the subscribing member'"'"'s real name and real shipping address to a shipper;

allowing the shipper to obtain one or more items purchased by the subscribing member during the purchase transaction from the merchant without revealing the subscribing member'"'"'s personal identity information to the merchant; and

instructing the shipper to label a package containing the items purchased by the subscribing member with the subscribing member'"'"'s real name and address on the label, and instructing the shipper to ship the labeled package to the subscribing member.

27. The method as recited in claim 17 wherein said purchase transaction is conducted between the subscribing member and the merchant via a global computer network.

28. The method as recited in claim 27 further comprising the steps of

providing the prescribing member with a user name and password;

and

providing a software application for installation on a computer used by the subscribing member.

29. The method as recited in claim 28 further comprising the steps of

allowing the subscribing member to shop on a global computer network using the subscribing member'"'"'s computer having the software application installed therein;

instructing the subscribing member to enter the subscribing member'"'"'s user name and password when conducting the purchase transaction with the merchant via the global computer network; and

entering anonymous information in an order placement screen of the merchant on behalf of the subscribing member to avoid revealing any unnecessary personal identity information of the subscribing member to the merchant.

30. The method as recited in claim 29 further comprising the steps of

establishing an anonymous email address on behalf of the subscribing member;

providing the anonymous email address to the merchant;

receiving email communications from the merchant at the anonymous email address;

forwarding email communications from the merchant to the subscribing member at the subscribing member'"'"'s real email address;

receiving email communications from the subscribing member via the subscribing member'"'"'s real email address; and

forwarding email communications from the subscribing member to the merchant via the anonymous email address without ever revealing the subscribing member'"'"'s real email address to the merchant.

31. A method for protecting against theft of personal identity information during purchase transactions, said method comprising the steps of

registering individual subscribers as members and obtaining personal identity information from each individual member, including the subscribing member'"'"'s name and account information for at least one financial account of the subscribing member;

entering the personal identity information of each subscribing member as data in a computer-based system;

encrypting the entered personal identity information data and storing the encrypted data;

issuing an anonymous controlled use card on behalf of each subscribing member for use to conduct at least one purchase transaction;

assigning a temporary controlled use card number to the issued anonymous controlled use card;

presenting the anonymous controlled use card number to a merchant when conducting a purchase transaction with a merchant;

requesting credit authorization for a monetary purchase value amount of the purchase transaction to be charged against the at least one financial account of the subscribing member;

obtaining approval for the monetary purchase value amount and assigning the approved monetary purchase value amount to the issued anonymous controlled use card; and

sending an approval indication to the merchant acknowledging approval for the monetary purchase value amount of the purchase transaction without revealing any personal identity information of the member.

32. The method as recited in claim 31 wherein said at least one financial account of the subscribing member is a credit card account.

33. The method as recited in claim 31 wherein said account information obtained during said step of registering includes a plurality of credit card accounts.

34. The method as recited in claim 32 wherein said step of requesting credit authorization for the monetary purchase value amount further comprises the step of

charging the monetary purchase value amount against the credit card account of the subscribing member.

35. The method as recited in claim 31 wherein said purchase transaction is conducted between the subscribing member and the merchant via a global computer network.

36. The method as recited in claim 35 further comprising the steps of:

providing the subscribing member with a user name and password; and

providing a software application for installation on a computer used by the subscribing member.

37. The method as recited in claim 36 further comprising the steps of

allowing the subscribing member to shop on a global computer network using the subscribing member'"'"'s computer having the software application installed therein;

instructing the subscribing member to enter the subscribing member'"'"'s user name and password when conducting the purchase transaction with the merchant via the global computer network; and

entering anonymous information in an order placement screen of the merchant on behalf of the subscribing member to avoid revealing any unnecessary personal identity information of the subscribing member to the merchant.

38. The method as recited in claim 37 further comprising the steps of

establishing an anonymous email address on behalf of the subscribing member;

providing the anonymous email address to the merchant;

receiving email communications from the merchant at the anonymous email address;

forwarding email communications from the merchant to the subscribing member at the subscribing member'"'"'s real email address;

receiving email communications from the subscribing member via the subscribing member'"'"'s real email address; and

forwarding email communications from the subscribing member to the merchant via the anonymous email address without ever revealing the subscribing member'"'"'s real email address to the merchant.

39. A method for protecting against theft of personal identity information during purchase transactions, said method comprising the steps of

registering individual subscribers as members and obtaining personal identity information from each individual member, including the subscribing member'"'"'s name and account information for at least one financial account of the subscribing member;

entering the personal identity information of each subscribing member as data in a computer-based system;

encrypting the entered personal identity information data and storing the encrypted data;

issuing an anonymous card on behalf of each subscribing member for use to conduct at least one purchase transaction;

establishing an anonymous purchase account associated with the anonymous card;

requesting credit authorization for a monetary value amount to be charged against the at least one financial account of the subscribing member and credited to the anonymous purchase account;

obtaining approval for the monetary value amount and crediting the approved monetary value amount to the anonymous purchasing account;

allowing the subscribing member to present the anonymous card to the merchant when conducting a card present purchase transaction without revealing the subscribing member'"'"'s personal identity information to the merchant;

allowing the merchant to obtain credit approval and payment for the card present purchase transaction up to the assigned and approved monetary value amount; and

debiting the merchant payment against the anonymous purchasing account to reduce the assigned authorized monetary value amount.

40. The method as recited in claim 39 wherein said at least one financial account of the subscribing member is a credit card account.

41. The method as recited in claim 40 wherein said account information obtained during said step of registering includes a plurality of credit card accounts.

42. A system for protecting against theft of personal identity information during purchase transactions, said system comprising:

at least one service provider center capable of receiving and entering personal identity information of individual subscribing members of the system, including each subscribing member'"'"'s name and account information for at least one financial account of the subscribing member, and said service provider center being further capable of entering the personal identity information as data in a computer-based system, encrypting and storing the entered data in at least one computer database, issuing an anonymous card on behalf of each subscribing member for use to conduct at least one purchase transaction, requesting credit authorization for a monetary purchase value amount to be charged against the at least one financial account of the subscribing member, obtaining approval for the monetary purchase value amount and assigning the approved monetary purchase value amount to the issued anonymous card, presenting the anonymous card to a merchant when the subscribing member is conducting a purchase transaction with the merchant, and allowing the merchant to obtain credit approval and payment for the purchase transaction in an amount not exceeding the approved monetary purchase value amount and without revealing any personal identity information of the subscribing member.

43. A system for protecting against theft of personal identity information during purchase transactions, said system comprising:

means for registering individual subscribers as members and obtaining personal identity information from each individual member, including the subscribing member'"'"'s name and account information for at least one financial account of the subscribing member;

means for entering the personal identity information of each subscribing member as data in a computer-based system;

means for encrypting the entered personal identity information data and storing the encrypted data;

means for issuing an anonymous card on behalf of each subscribing member for use to conduct at least one purchase transaction;

means for requesting credit authorization for a monetary purchase value amount to be charged against the at least one financial account of the subscribing member;

means for obtaining approval for the monetary purchase value amount and assigning the approved monetary purchase value amount to the issued anonymous card;

means for presenting the anonymous card to a merchant when the subscribing member is conducting a purchase transaction with the merchant; and

means for allowing the merchant to obtain credit approval and payment for the purchase transaction in an amount not exceeding the approved monetary purchase value amount and without revealing any personal identity information of the subscribing member.