Method and device for preventing unauthorized use of credit cards

• US 6,095,416 A
• Filed: 02/24/1998
• Issued: 08/01/2000
• Est. Priority Date: 02/24/1998
• Status: Expired due to Fees

• Current Assignee: Privicom Incorporated
• Original Assignee: Privicom Incorporated
• Inventors: Gambino, Richard J., Grant, Alan H.
• Primary Examiner(s): Lee, Michael G
• Assistant Examiner(s): FUREMAN, JARED
• Application Number:
  US09/028,855
• Time in Patent Office: 889 Days
• Field of Search: 235/379, 235/380, 235/382, 235/449, 235/450, 235/487, 235/492, 235/493, 902/4, 902/5
• US Class Current: 235/449
• CPC Class Codes: G06K 19/073 Special arrangements for circuits, e.g. for protecting identification code in memory protection against unauthorised use of computer memory G06F12/14
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/347 Passive cards
• CPC Class Codes: G06Q 20/4097 using mutual authentication between devices and transaction partners
• 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 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07F 7/1058 PIN is checked locally

Abstract

An authorization card, such as a credit card, has a security feature. The authorization card generally has two operational states, a disabled state and an enable state. In the disabled state, which is the default mode of operation, access to confidential information stored on the card is denied. The card remains in the disabled state until a PIN code is entered on a keypad provided on the card. Once the card is enabled, access to the confidential information is permitted for a predetermined period of time, after which the card reverts back to the default disabled state. The security feature is implemented on a magnetic card, an electronic smart card, and passive electronic card.

Claims

1. A card for storing confidential information to be accessed by a card reader comprising

a magnetic strip permanently storing the confidential information on the card,

means for retaining the magnetic strip in a disable state so that the confidential information permanently stored on the magnetic strip cannot be accessed by the card reader, and

means for enabling the magnetic strip for a predetermined period of time so that the confidential information permanently stored on the magnetic strip can be accessed by the card reader.

2. The card of claim 1, wherein the card at all times physically appears to be usable.

3. The card of claim 1, wherein the means for enabling further automatically returns the card to the disable state upon expiration of the predetermined period of time.

4. The card of claim 1, wherein the means for enabling comprises a keyboard having keys.

5. The card of claim 1, wherein said means for retaining the magnetic strip in a disable state comprises means for disabling the magnetic strip.

6. The card of claim 1, wherein said means for enabling are internal to said card.

7. The card of claim 1, wherein said means for enabling comprise an identification code.

10. The method of claim 7, wherein the magnetic strip cannot be enabled external from the card.

8. A method for securing confidential information stored on a magnetic strip of a card, the method comprising the steps of retaining the card in a disabled state during which the confidential information stored on the magnetic strip cannot be accessed and enabling a user to place the card in an enabled state for a predetermined period of time during which the confidential information can be accessed from the magnetic strip.

9. The method of claim 8, further comprising the step of automatically returning the card to the disabled state upon expiration of the predetermined period of time.

11. The method of claim 8, wherein the step of enabling comprises entering an identification code.

12. A card for storing confidential information to be accessed by a card reader comprising

a magnetic strip for permanently storing the confidential information,

at least one permanent magnet for inducing a magnetic disable field across the magnetic strip for retaining the card in a disable state so that the confidential information stored on the magnetic strip cannot be accessed by the card reader, and

a keyboard having keys for entering a PIN code, entry of a correct PIN code enabling the magnetic strip for a predetermined period of time so that the confidential information stored on the magnetic strip can be accessed by the card reader.

13. The card as set forth in claim 12, wherein said at least one permanent magnet is placed such that the magnetic strip runs adjacent to said at least one magnet.

14. The card as set forth in claim 13, further comprising:

a yoke connecting two of said at least one permanent magnet, said yoke being located directly beneath the keys and having gaps filled with a polymer such that, when keys corresponding to the correct PIN code are depressed, the polymer located in the gaps increases in size, increasing a size of respective gaps and decreasing a permeability of the yoke, thereby reducing the magnetic disable field and enabling the magnetic strip.

15. The card as set forth in claim 14, wherein, upon key release, the polymer gradually returns to its original size and the magnetic disable field is reinstated, disabling the magnetic strip.

16. The card as set forth in claim 13, further comprising:

a yoke connecting two of said at least one permanent magnet; and

a secondary permanent magnet divided into sections and positioned parallel to and directly beneath said yoke, those sections of said secondary magnet corresponding to correct PIN keys having a reverse-bias such that, when the correct PIN code is entered, the reverse-biased sections move into openings in the yoke to resist magnetic flux in the yoke, thereby reducing the magnetic disable field and enabling the magnetic strip.

17. The card as set forth in claim 16, wherein entry of false keys in addition to the correct PIN code lowers an output signal of the magnetic strip so as to be below a threshold level necessary for enablement.

18. The card as set forth in claim 13, wherein the yoke comprises a plurality of parallel yoke bands.

19. The card as set forth in claim 18, wherein a number of said plurality of parallel yoke bands is equal to a number of digits in said correct PIN code.

20. The card as set forth in claim 12, further comprising:

a flux closure yoke connecting two of said at least one permanent magnet; and

a yoke of permeable magnetic material extending from one of the permanent magnets to a point beyond a far side of the magnetic strip, the permeable material at the far side making a turn back toward the permanent magnets to a near side, such that said permeable material passes beneath said magnetic strip, the permeable material at the near side making a turn back toward the far side, such that said permeable material passes beneath said magnetic strip, and said permeable material again making a turn to pass back under said magnetic strip and toward the permanent magnets;

wherein both of said permanent magnets are on a same side of said magnetic strip and only control a magnetic state of said magnetic strip through passage of magnetic flux through said yoke of permeable magnetic material.