Secure transaction system and method utilized therein

• US 5,555,303 A
• Filed: 05/22/1995
• Issued: 09/10/1996
• Est. Priority Date: 11/17/1992
• Status: Expired due to Fees

• Current Assignee: Leon Stambler
• Original Assignee: Leon Stambler
• Inventors: Stambler, Leon
• Primary Examiner(s): CANGIALOSI, SALVATORE A
• Application Number:
  US08/445,612
• Time in Patent Office: 477 Days
• Field of Search: 380/4, 380/25
• US Class Current: 705/75
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/347 Passive cards
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• CPC Class Codes: G06Q 20/401 Transaction verification
• 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 7/10 together with a coded signal , e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
• CPC Class Codes: G07F 7/1016 Devices or methods for securing the PIN and other transaction-data, e.g. by encryption arrangements for secret communication, see H04L9/00
• CPC Class Codes: G07F 7/1066 PIN data being compared to data on card
• CPC Class Codes: G07F 7/12 Card verification
• CPC Class Codes: G07F 7/125 Offline card verification
• CPC Class Codes: G16H 20/10 relating to drugs or medications, e.g. for ensuring correct administration to patients
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 9/3226 using a predetermined code, e.g. password, passphrase or PIN network architectures or network communication protocols for supporting authentication of entities using passwords in a packet data network H04L63/083

Abstract

A transaction system is disclosed wherein, when a transaction, document or thing needs to be authenticated, information associated with one or more of the parties involved is coded together to produce a joint code. This joint code is then utilized to code information relevant to the transaction, document or record, in order to produce a variable authentication number (VAN) at the initiation of the transaction. This VAN is thereafter associated with the transaction and is recorded on the document or thing, along with the original information that was coded. During subsequent stages of the transaction, only parties capable of reconstructing the joint code will be able to uncode the VAN properly in order to re-derive the information. The joint code serves to authenticate the parties, and the comparison of the re-derived information against the information recorded on the document serves to authenticate the accuracy of that information.

Claims

1. In a transaction system comprising a first storage means in possession of a first party, containing party information, the party information comprising a predetermined first non-secret code (ROC1), a predetermined arbitrary first transaction number (TN1), and predetermined party information used to form a predetermined address (PA), a second storage means, and party information stored in the second storage means, the second storage means party information comprising a predetermined arbitrary first secret number (RN1), and a predetermined second transaction number (TN2) corresponding to the TN1, a method for authenticating the first party, the first storage means, and transaction information comprising the steps of:

receiving a personal identification number (PIN) from the first party, at a first site, and generating first coded authentication information using the received PIN;

retrieving the party information from the first storage means, at the first site;

coding the transaction information and the TN1 with the first coded authentication information to generate a first anti-duplication variable authentication number (ADVAN1), at the first site;

transmitting the ADVAN1, and a portion of the retrieved first storage means party information, said portion comprising the ROC1 and the predetermined party information used to form the PA, from the first site to a second site;

deriving the PA at the second site from the received predetermined party information;

accessing the second storage means using the derived PA to locate and retrieve RN1 and TN2;

generating second coded authentication information using the received ROC1 and the retrieved RN1;

uncoding the ADVAN1 using the second coded authentication information to derive the TN1 and the transaction information;

comparing the derived TN1 to the retrieved TN2;

authenticating the first party, the first storage means, and the transaction information if the derived TN1 corresponds to the retrieved TN2;

forming a revised third transaction number (TN3) and a revised second secret number (RN2);

storing the TN3 and the RN2 in the second storage means at the predetermined address (PA);

generating a revised second non-secret code (ROC2) using the second coded authentication information and the RN2;

coding the TN3 with the second coded authentication information to generate a second anti-duplication variable authentication number ADVAN2);

transmitting the ADVAN2 and the ROC2 from the second site to the first site;

uncoding the received ADVAN2 at the first site using the first coded authentication information to derive the TN3; and

storing the derived TN3 and the received ROC2 in the first storage means for use in a subsequent transaction.

2. The method of claim 1 wherein the PIN is unrecoverable within the system.

3. The method of claim 1 wherein the TN3 is coded with the second coded authentication information and TN2, to generate the ADVAN2;

and

the received ADVAN2 is uncoded at the first site using the first coded authentication information and TN1, to derive the TN3.

4. The method of claim 1, further comprising the step of:

coding the predetermined address (PA) with the first coded authentication information to form a coded predetermined address (CPA) so that the PA is secret; and

storing the CPA in the first storage means.

5. The method of claim 4 wherein at least a portion of the CPA is revisable.

6. The method of claim 5 wherein a first terminal transfer code (TTC1) is stored at the first site and a corresponding second terminal transfer code (TTC2) is stored at the second site, further comprising the steps of:

deriving the PA at the first site using the first coded authentication information by uncoding the CPA;

coding the derived PA with TTC1 to generate a terminal coded address (TCA);

transmitting the TCA from the first site to the second site;

uncoding the TCA at the second site using the TTC2 to derive the PA; and

accessing the second storage means using the derived PA to locate and retrieve the second storage means party information.

7. The method of claim 6 further comprising the steps of:

revising the TTC2 at the second site to form a third terminal transfer code (TTC3) for use in a subsequent transaction;

storing the TTC3 at the second site;

coding the TTC3 with the TTC2 to generate a coded transfer number (CTN);

transmitting the CTN from the second site to the first site;

uncoding the CTN at the first site using the TTC1 to derive the TTC3;

storing the uncoded TTC3 at the first site.

8. The method of claim 1 wherein the step of transmitting the ADVAN1, and a portion of the retrieved first storage means party information, said portion comprising the ROC1 and the predetermined party information used to form the PA, from the first site to the second site, further comprises transmitting at least a portion of the transaction information;

the step of comparing the derived TN1 to the retrieved TN2, further comprises the step of comparing the transaction information uncoded from the ADVAN1 using the second coded authentication information with the at least a portion of the transaction information transmitted; and

the step of authenticating additionally requires that the uncoded transaction information corresponds to the transmitted transaction information.

9. In a computer system comprising a memory containing computer information stored in a controlled memory area to which access is granted only upon proper authentication of an authorized user of the computer system, the memory further including a stored control program for interacting with a user and for making a determination as to whether the user is an authorized user, the memory further including a first area, not readily accessible to a user, the first memory area containing a first revisable code (RN) and a second revisable code (TSN1) and a second area containing a third revisable code (ROC) and a fourth revisable code (TSN2), the fourth revisable code (TSN2) being identical to the second revisable code (TSN1), a method of authentication of a user comprising the steps of:

receiving in the computer system a personal identification number IPIN) from a user;

generating first encoded authentication information (CPN1) using the received personal identification number (PIN);

retrieving the fourth revisable code (TSN2) and encoding the fourth revisable code (TSN2) with the first encoded authentication information (CPN1) to obtain a first anti-duplication variable number (ADVAN1);

retrieving the first revisable code (RN) from the first memory area and the third revisable code (ROC) from the second memory area and deriving therefrom second encoded authentication information (CPN2);

retrieving the second revisable code (TSN1) from the first memory area and encoding the second revisable code (TSN1) with the second encoded authentication information (CPN2) to obtain a second anti-duplication variable number (ADVAN2);

comparing the first anti-duplication variable number (ADVAN1) with the second anti-duplication variable number (ADVAN2);

granting access to the computer information stored in the controlled memory area to the user only if the first and second anti-duplication variable numbers (ADVAN1 and ADVAN2) are identical; and

revising and storing the first, second, third and fourth revisable codes (RN, TSN1, ROC and TSN2) in the original respective memory areas only if the first and second anti-duplication variable numbers (ADVAN1 and ADVAN2) are identical.

10. The method as recited in claim 9 wherein the computer information comprises a software program.

11. The method as recited in claim 9 wherein the computer information comprises a derivative of a software program.

12. The method as recited in claim 9 further comprising the step of permitting the computer information stored in the controlled memory area to be reproduced only if the first and second anti-duplication variable numbers (ADVAN1 and ADVAN2) are identical.

13. The method as recited in claim 11 wherein the software derivative is one of a text file, a document file, a chart, an image file, a video file, a fax file, an audible file, a command, a procedure, a function, a sub routine and a software module.

14. The method as recited in claim 9 wherein the computer information comprises one of a video media, a facsimile media, an audible media and a CD-ROM.

15. In a transaction system comprising a first storage means at a first site in possession of a first party containing party information, the party information comprising a predetermined first non-secret code (ROC) and a predetermined arbitrary first transaction number (TN1), a second storage means at a second site, and party information stored in the second storage means, the second storage means party information comprising a predetermined arbitrary second number (RN), a method for authenticating the first party, the first storage means and transaction information comprising the steps of:

previously receiving a personal identification number (PIN) from the first party at a first site and generating coded authentication information (CPN) using the received personal identification number (PIN);

previously storing the coded authentication information (CPN) in the first storage means;

retrieving the stored coded authentication information (CPN) and the stored first party information (ROC and TN1) from the first storage means;

coding the transaction information and the first transaction number (TN1) with the coded authentication information (CPN) to generate a first anti-duplication variable authentication number (ADVAN) at the first site;

transmitting the first anti-duplication variable authentication number (ADVAN) and at least a portion of the first party information retrieved from the first storage means comprising at least a portion of the first transaction number (TN1) and at least a portion of the first non-secret code (ROC) from the first site to the second site;

retrieving the predetermined arbitrary second number (RN) from the second storage means at the second site;

uncoding the anti-duplication variable authentication number (ADVAN) using the first non-secret code (ROC) and the retrieved predetermined second arbitrary number (RN) to derive the first transaction number (TN1) and the transaction information;

comparing the derived first transaction number (TN1) and the received first transaction number (TN1); and

authenticating the first party, the first storage means, and the transaction information if the derived first transaction number (TN1) corresponds to the received first transaction number (TN1).

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

forming a revised arbitrary first transaction number; and

storing the revised transaction number in the first storage means in place of the original first transaction number (TN1) for use in a subsequent transaction.

17. The method as recited in claim 15 wherein the transaction information is transmitted with the ADVAN, TN1 and ROC.