Check fraud prevention system

• US 6,073,121 A
• Filed: 09/29/1997
• Issued: 06/06/2000
• Est. Priority Date: 09/29/1997
• Status: Expired due to Fees

• Current Assignee: Emil Y. Ramzy
• Original Assignee: Emil Y. Ramzy
• Inventors: Ramzy, Emil Y.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): TESFAMARIAM, MUSSIE
• Application Number:
  US08/939,872
• Time in Patent Office: 981 Days
• Field of Search: 705/45, 380/3, 380/4, 380/51, 235/380, 235/379
• US Class Current: 705/45
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G07D 7/0043 using barcodes

Abstract

A method which improves check fraud prevention systems both in printing and verifying checks at their entry points. The method operates by printing on each issued check, a line of encrypted machine-only readable symbols such as a bar-code that contains all the information printed on the check, using a special, key-selectable encryption algorithm. When a check is presented to a bank teller or a cashier, a required, modified reader/decoder device connected to a computer, will read the line of encrypted data and identify a fraudulent check for rejection. The method requires primarily computer software additions and changes. Expensive replacement of existing equipment is avoided.

Claims

1. An improvement to current check fraud prevention methods for printing a check, wherein the improvement comprises the added steps of:

(a) reading all the check data to be printed on a check face;

(b) converting said check data to a line of machine-only readable symbols, using a specially encoded, key-selectable encryption algorithm;

(c) printing said line of machine-only readable symbols containing check data, above the MICR line of symbols on the lower face of said check;

whereby, the addition of said line of machine-only readable symbols permits the detection of any unauthorized changes made to the printed data on said check.

3. The improvement according to claim 1, wherein said improvement further includes in step (b):

changing periodically, the key to the encryption code used to produce said line of machine-only readable symbols containing check data, in response to input from a system operator.

2. A method of verifying checks to prevent check fraud, for verification systems having a reader/decoder device connected to a computer, for use with checks that have, printed on their face, a specially encoded, key-selectable encrypted line of machine-only readable symbols that contains all check face data, the method comprising the steps of:

(a) inserting a presented check in said reader/decoder for scanning;

(b) reading all printed check data on the face of said check and decoding said specially encoded, key-selectable encrypted line of machine-only readable symbols, producing a decoded line of check data;

(c) comparing said printed check data with said decoded line of check data to determine if they match;

(d) displaying on a monitor, a "Reject" message if no match is found;

(e) displaying on a monitor, if a match is found, said decoded line of check data for teller or cashier review;

(f) displaying on a monitor after a short time for review, a request for teller input;

"Transmit the data to central processor for analysis? Yes or No";

(g) ending program If teller input reply is "No", else,

(h) transmitting said decoded line of check data to said central processor and requesting analysis for errors or other reasons for rejection including check duplication;

(i) displaying on said monitor a "Reject" message or an "OK (Accept)" message depending on the response received from said central processor after check analysis;

(j) ending program.

4. The method of verifying checks according to claim 2, further including in step (a):

inputting to said computer, a changed key to the encryption code used to produce said line of machine-only readable symbols containing check data when such change is required.