Method and apparatus for minimizing credit card fraud

• US 6,188,309 B1
• Filed: 01/07/1998
• Issued: 02/13/2001
• Est. Priority Date: 01/07/1998
• Status: Expired due to Term

• Current Assignee: Citicorp Holdings Incorporated (Citigroup Incorporated)
• Original Assignee: AT&T Corporation (AT&T, Inc.)
• Inventors: Levine, Ronald M.
• Primary Examiner(s): Horabik, Michael
• Assistant Examiner(s): SHIMIZU, MATSUICHIRO
• Application Number:
  US09/003,630
• Time in Patent Office: 1,133 Days
• Field of Search: 340/825.34, 340/5.1, 340/5.2, 340/5.4, 340/5.6, 340/5.66, 340/5.8, 340/5.81, 340/5.85, 235/380, 235/382, 235/449, 235/493
• US Class Current: 340/5.66
• 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 20/3415 Cards acting autonomously as pay-media
• 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 7/1025 Identification of user by a PIN code

Abstract

An intelligent credit card incudes a keypad for inputting numbers and other information, a processor for controlling the operation of the credit card, a power source, and an output device for selectively outputting the credit card number when the card is activated. The output device is a magnetic strip. A user inputs a sequence of numbers using the keypad. The received sequence of numbers are compared to a stored PIN number. If the sequence of numbers matches the PIN number, the card is activated, and the credit card number is output using the output device.

Claims

1. An intelligent credit card comprising:

a keypad;

a power source;

a magnetic strip encoded with a predetermined credit card number, wherein said credit card number is readable from said magnetic strip only when said magnetic strip is excited by said power source; and

a processor coupled to the keypad, the magnetic strip and the power source, wherein said processor causes said magnetic strip to be excited by said power source for a predetermined period of time when the processor determines that a correct Personal Identification Number has been entered at the keypad.

2. The intelligent credit card of claim 1 wherein the credit card is approximately the same size as a conventional credit card.

3. The intelligent credit card of claim 1 wherein said keypad comprises a membrane keypad.

4. The intelligent credit card of claim 1 wherein said processor comprises a micro controller.

5. An intelligent credit card comprising:

a keypad;

a power source;

a magnetic strip encoded with a predetermined credit card number, wherein said credit card number is readable from said magnetic strip only when said magnetic strip is excited by said sower source;

a memory storing a Personal Identification Number; and

a processor adapted to receive an input number from said keypad, compare the input number to the Personal Identification Number that is stored in said memory, and activate said magnetic strip for a predetermined period of time if the input number corresponds to the stored Personal Identification Number, said processor coupled to said keypad, said power source and said memory.

6. The intelligent credit card of claim 5 wherein said step of deactivating comprises the step of not supplying current to the magnetic strip.

7. The intelligent credit card of claim 5 wherein said step of activating comprises the step of supplying a current to the magnetic strip if the received input number matches the stored PIN.

8. The intelligent credit card of claim 5 wherein said step of activating comprises the step of supplying, under control of the processor, a current from the processor to the magnetic strip to activate the magnetic strip if the received input number matches the stored PIN.

9. An intelligent card system comprising:

a magnetic strip encoded with a predetermined number, wherein said number is readable from said magnetic strip only when said magnetic strip is activated;

means for inputting a number;

means for storing a Personal Identification Number;

means for comparing the inputted number to the stored Personal Identification Number;

means for activating the magnetic strip for a predetermined period of time if the input number matches the stored Personal Identification Number.

10. The intelligent credit card of claim 9 wherein said means for inputting a number comprises a keypad.

11. The intelligent credit card of claim 9 wherein said means for storing a PIN comprises a processor.

12. The intelligent credit card of claim 9 wherein said means for comparing comprises a processor.

13. The intelligent credit card of claim 9 wherein said means for activating comprises a processor.

14. A method for minimizing credit card fraud comprising:

receiving an input number from a keypad;

comparing said input number to a Personal Identification Number that is stored in a memory; and

activating, for a predetermined period of time, a magnetic strip that has been encoded with a predetermined number if said number corresponds to said Personal Identification Number.

15. The method of claim 14 wherein said step of activating comprises the step of supplying a current, under control of a processor, to the magnetic strip to activate the magnetic strip.

16. The method of claim 14 and further comprising the steps of:

allowing a user a limited number of attempts to input a number that matches the PIN;

completely deactivating the credit card if the user fails to enter a matching number within the limited number of attempts.