Method and apparatus for securing communications

• US 6,766,161 B2
• Filed: 10/17/2001
• Issued: 07/20/2004
• Est. Priority Date: 09/03/1997
• Status: Expired due to Term

• Current Assignee: Interlok Key Management LLC
• Original Assignee: Interlott Technologies Incorporated (International Game Technology)
• Inventors: Geiselman, John Milton, Lerner, Daniel M., Bobola, Robert E.
• Primary Examiner(s): Nguyen, Duc M.
• Application Number:
  US09/981,309
• Publication Number:
  US 20020072349A1
• Time in Patent Office: 1,007 Days
• Field of Search: 455/410, 455/411, 455/422, 455/403, 455/412, 455/414.1, 705/44, 705/39, 705/64, 705/67, 705/71-76, 705/26, 705/27, 235/380-382
• US Class Current: 455/411
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: H04W 12/126 Anti-theft arrangements, e.g. protection against subscriber identity module [SIM] cloning

Abstract

The present invention provides a method and apparatus for identifying and minimizing the use of cloned communicating devices which communicate with a host device. The method requires that the communicating devices send a transaction specific code and an identification code, along with each communication wherein the transaction specific code changes between each communication. One communicating device, either the authentic device or a fraudulent device might communicate with the host successfully any number of times. However, when a second devices attempts communication whether that device is the authorized device or fraudulent device, the host device will receive a transaction specific code which is inconsistent or out of sequence with that expected by the host. The host device will preferably disallow all further communications involving the particular identification code until the authorized user can be contacted and the transaction specific code reset or even a new set of transaction specific codes are provided. Alternatively, upon detection of the inconsistent transaction specific code, the host computer may prompt the user for information specific to the authorized user that is not stored in the communicating device and would not be readily available to the clone device or the user of the clone device.

Claims

1. A method for credit card authorization and approval, comprising:

(a) verifying, using a host computer, that a communication from a communicating device is being initiated by an authorized credit card user;

(b) selecting and storing, using the host computer, a next transaction specific code;

(c) handing, using the host computer, the next transaction specific code to the communicating device; and

(d) authorizing, using the host computer, a subsequent credit card transaction accompanied by the next transaction specific code.

2. The method of claim 1, wherein the step of verifying includes the step of prompting the user to enter a personal identification code (PIN).

3. The method of claim 1, wherein control over the selection of the next transaction specific code is provided solely to the host computer.

4. The method of claim 1, wherein the step of handing includes the step of displaying the next transaction specific code on the communicating device for manually entry of the next transaction specific code into a point-of-sale computer.

5. The method of claim 1, wherein the communicating device is a hand held electronic device.

6. The method of claim 1, wherein the step of selecting includes the step of providing an algorithm for calculating the next transaction specific code.

7. The method of claim 6, wherein the algorithm calculates random codes.

8. The method of claim 1, further comprising:

(e) repeating steps (a) through (d) for each credit card transaction.

9. The method of claim 1, wherein the transmitted communication passes through a plurality of communicating devices.

10. The method of claim 1, wherein the communicating device is a computer.

11. The method of claim 1, wherein the transmitted communication passes through a computer network.

12. The method of claim 1, wherein the step of transmitting the communication includes a manual entry.

13. The method of claim 1, wherein the communication is part of a credit card transaction.

14. The method of claim 1, wherein the subsequent credit card transaction does not include an account number for the credit card.

15. The method of claim 1, wherein the step of selecting and storing a next transaction specific code includes independently selecting.

16. The method of claim 1, wherein the communicating device does not possess the next transaction specific code until after the host computer hands the next transaction specific code to the communicating device.

17. The method of claim 1, wherein the credit card user is authorized on a given credit card account, and wherein the subsequent credit card transaction is associated with the given credit card account.