Hierarchical authentication process and system for financial transactions

• US 6,907,408 B2
• Filed: 06/04/2002
• Issued: 06/14/2005
• Est. Priority Date: 06/04/2002
• Status: Active Grant

• Current Assignee: Albert Justin Angel
• Original Assignee: Proven Identity LLC
• Inventors: Angel, Albert J.
• Primary Examiner(s): Elisca, Pierre E.
• Application Number:
  US10/161,952
• Publication Number:
  US 20030225703A1
• Time in Patent Office: 1,106 Days
• Field of Search: 705/64, 705/40, 705/41, 380/258, 380/270, 382/124, 713/186, 700/200, 700/231, 235/380
• US Class Current: 705/64
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 30/08 Auctions

Abstract

The method of confirming an identity of a person who requests a financial transaction utilizes a plurality of confirmatory processes. Some of these processes include a voice responsive interactive session, an interactive electronic data session, acquiring and comparing a third set of acquired data with data from the person, and acquiring and comparing nth sets of acquiring data with data from the person. Each confirmatory process has time and cost factors associated therewith. The processes are prioritized and correlated to external factors such as the frequency of inquiry, communications channel data, the communications device, random selection criteria and sampling rate criteria. The financial transaction request is processed and cleared or rejected. Some acquired data is stored data and has a nominal cost and a substantially instantaneous. Other types of data are acquired from commercial data sources. Representative time and cost factors are utilized in order to establish a hierarchy of confirmatory processes based upon the external factors.

Claims

1. A method of confirming identity of a person who requests to execute a financial transaction using time-based and cost-based hierarchal confirmatory and clearance processes comprising:

(a) establishing two or more confirmatory processes from the group of confirming processes including;

a voice responsive interactive session with said person, having an assigned representative first time and cost factors, and comparing responsive data with a first set of acquired data potentially representative of said person;

an interactive electronic data session, having an assigned representative second time and cost factors, comparing electronic responsive data from said person with said first set or a second set of acquired data potentially representative of said person;

acquiring and comparing a third set of acquired data, having an assigned representative third time and cost factors, with data from said person;

acquiring and comparing further sets of acquired data, each having an assigned corresponding representative further time and cost factors, with data from said person, said nth set of acquired data having one of a higher cost factor or a longer data acquisition factor or both a higher cost factor and a longer data acquisition factor;

(b) prioritizing said confirmatory processes based upon said time factors and cost factors correlated to a plurality of external factors from the group including a frequency of inquiry for said person, previously acquired data for said person, charge back data for said person, bill payment data for said person, amount of said financial transaction, a communications channel data associated with said person seeking said financial transaction, a communications device utilized by said person seeking to execute said financial transaction, a random selection, and a sampling rate for financial transactions;

(c) processing said request for said financial transaction from said person with said confirmatory processes based upon said external factors; and

(d) clearing or rejecting said financial transaction based upon the use of the prioritized and established confirmatory processes.

2. A method of confirming identity as claimed in claim 1 including gathering said first, second, third and further sets of acquired data from commercial data sources.

3. A method of confirming identity as claimed in claim 2 wherein said commercial data sources have an assigned data acquisition time and an assigned data acquisition cost, said time and cost factors of said confirmatory processes affected by the assigned data acquisition time and an assigned data acquisition cost for said commercial data sources.

4. A method of confirming identity as claimed in claim 3 wherein a respective confirmatory process of said group of confirmatory processes have

a respective assigned time factor which is a nominal time factor and a respective assigned cost factor having a value of zero or greater;

or

a respective assigned cost factor which is a nominal cost factor and a respective assigned time factor having an assigned value of substantially instantaneous or a higher time value;

a selection technique to elect one of two or more confirmatory processes that have identical cost and time factors assigned thereto.

5. A method of confirming identity as claimed in claim 4 wherein said time factor assigned to each confirmatory process includes a data presentation time to said person and an inquiry response time from said person.

6. A method of confirming identity as claimed in claim 5 wherein the prioritization links more comprehensive confirmatory processes, via the respective assigned time and cost factors, and said plurality of external factors, said more comprehensive confirmatory processes defined by either a higher cost factor or a higher time factor or both a higher cost factor and a higher time factor, based upon one or more of the following characteristics of said plurality of external factors:

increasingly higher frequencies of inquiry compared to frequencies of inquiry incorporated as part of said previously acquired data for said person;

increasingly higher amounts of said financial transaction;

increasingly higher amounts of said financial transaction for said person based upon said previously acquired data for said person;

requests for financial transactions from a person wherein the amount of said financial transaction increasingly deviates from prior requested amounts based upon said previously acquired data for said person;

a different communications channel data currently associated with said request to execute said financial transaction than communications channel data for said person based upon said previously acquired data for said person; and

a different communications device utilized by said person than communications device for said person based upon said previously acquired data for said person.

7. A method of confirming identity as claimed in claim 6 wherein said communications channel data is channel data from the group of channel data representing an Internet Protocol (IP) address, a telephone caller id, and an automatic number identification (ANI) and wherein said communications device is a communications device from the group of devices including a computer, a personal digital assistant (PDA), a land-line telephone, and a cellular telephone.

8. A method of confirming identity as claimed in claim 7 wherein said acquired data includes a password unique to said person.

9. A method of confirming identity of a person who requests to execute a financial transaction using time-based and cost-based hierarchal confirmatory and clearance processes comprising:

(a) establishing two or more confirmatory processes from the group of confirming processes including;

(i) an operator assisted question and answer (Q and A) session with said person, having assigned representative first time and cost factors associated therewith;

(ii) a voice responsive interactive session with said person comparing responsive data, converted from said voice responsive interactive session, with a first set of acquired data potentially representative of said person, having assigned representative second time and cost factors associated therewith,

(iii) an interactive electronic data session comparing electronic responsive data from said person with said first set or a second set of acquired data potentially representative of said person, having assigned representative third time and cost factors associated therewith,

(iv) acquiring and comparing a third set of acquired data potentially representative of said person with data supplied by or from said person wherein said third set of acquired data is acquired during a first data acquisition period, and having assigned representative fourth time and cost factors associated therewith,

(v) acquiring and comparing further sets of acquired data potentially representative of said person with data supplied by or from said person wherein each said further set of acquired data is acquired during a corresponding further data acquisition period and wherein the further sets of acquired data and corresponding further acquisition periods are larger than said third set of acquired data and said first data acquisition period, respectively, and each having an assigned representative further time and cost factors associated therewith,

(b) prioritizing said established confirmatory processes based upon said time factors and cost factors correlated to at least two external factors from the group of external factors including a frequency of inquiry for said person, previously acquired data for said person, amount of said financial transaction, a communications channel data associated with said person seeking said financial transaction, a communications device utilized by said person seeking to execute said financial transaction, a random selection, and a sampling rate for financial transactions;

(c) processing said request for said financial transaction from said person with said confirmatory processes based upon said at least one external factor; and

(d) clearing or rejecting said financial transaction based upon the use of the prioritized and established confirmatory processes.

10. A method of confirming identity as claimed in claim 9 wherein a respective confirmatory process of said group of confirmatory processes have

a respective assigned time factor which is a nominal time factor and a respective assigned cost factor having a value of zero or greater.

11. A method of confirming identity as claimed in claim 9

wherein a respective confirmatory process of said group of confirmatory processes have

a respective assigned cost factor which is a nominal cost factor and a respective assigned time factor having an assigned value of substantially instantaneous or a higher time value.

12. A method of confirming identity as claimed in claim 9

wherein a respective confirmatory process of said group of confirmatory processes have

a respective assigned time factor which is a nominal time factor and a respective assigned cost factor having a value of zero or greater;

or

a respective assigned cost factor which is a nominal cost factor and a respective assigned time factor having an assigned value of substantially instantaneous or a higher time value;

and, in the event that two or more confirmatory processes have identical cost and time factors assigned thereto, the method employs a random selection therebetween or a preselected default thereetween.

13. A method of confirming identity as claimed in claim 12 wherein a plurality of confirmatory processes are utilized to clear or reject said requested financial transaction, and wherein a plurality of external factors are utilized to prioritize said plurality of confirmatory processes,

wherein the prioritization links more comprehensive confirmatory processes, via the respective assigned time and cost factors, and said plurality of external factors, said more comprehensive confirmatory processes defined by either a higher cost factor or a higher time factor or both a higher cost factor and a higher time factor, based upon one or more of the following characteristics of said plurality of external factors:

increasingly higher frequencies of inquiry compared to frequencies of inquiry incorporated as part of said previously acquired data for said person;

increasingly higher amounts of said financial transaction;

increasingly higher amounts of said financial transaction for said person based upon said previously acquired data for said person;

requests for financial transactions from a person wherein the amount of said financial transaction increasingly deviates from prior requested amounts based upon said previously acquired data for said person;

a different communications channel data currently associated with said request to execute said financial transaction than communications channel data for said person based upon said previously acquired data for said person; and

a different communications device utilized by said person than communications device for said person based upon said previously acquired data for said person.

14. A method of confirming identity as claimed in claim 13 wherein said communications channel data is channel data from the group of channel data representing an Internet Protocol (IP) address, a telephone caller id, and an automatic number identification (ANI) and wherein said communications device is a communications device from the group of devices including a computer, a personal digital assistant (PDA), a land-line telephone, and a cellular telephone.

15. A method of confirming identity as claimed in claim 14 wherein said acquired data includes a password unique to said person.

16. A method of confirming identity as claimed in claim 15 wherein said operated assisted Q and A session includes comparing answers from said person with previously acquired data for said person.

17. A method of confirming identity as claimed in claim 9 including gathering said first, second, third and further sets of acquired data from commercial data sources.

18. A method of confirming identity as claimed in claim 17 wherein said commercial data sources have an assigned data acquisition time and an assigned data acquisition cost, said time and cost factors of said confirmatory processes affected by the assigned data acquisition time and an assigned data acquisition cost for said commercial data sources.

19. A method of confirming identity as claimed in claim 18 wherein a plurality of confirmatory processes are utilized to clear or reject the requested financial transaction, and wherein a plurality of external factors are utilized to prioritize said plurality of confirmatory processes,

wherein a respective confirmatory process of said group of confirmatory processes have

a respective assigned time factor which is a nominal time factor and a respective assigned cost factor having a value of zero or greater;

or

a respective assigned cost factor which is a nominal cost factor and a respective assigned time factor having an assigned value of substantially instantaneous or a higher time value;

and, in the event that two or more confirmatory processes have identical cost and time factors assigned thereto, the method employs a random selection therebetween or a preselected default thereetween.

20. A method of confirming identity as claimed in claim 18 wherein said time factor assigned to each confirmatory process includes a data presentation time to said person and an inquiry response time from said person.

21. A method of confirming identity as claimed in claim 20

wherein the prioritization links more comprehensive confirmatory processes, via the respective assigned time and cost factors, and said plurality of external factors, said more comprehensive confirmatory processes defined by either a higher cost factor or a higher time factor or both a higher cost factor and a higher time factor, based upon one or more of the following characteristics of said plurality of external factors:

increasingly higher frequencies of inquiry compared to frequencies of inquiry incorporated as part of said previously acquired data for said person;

increasingly higher amounts of said financial transaction;

increasingly higher amounts of said financial transaction for said person based upon said previously acquired data for said person;

requests for financial transactions from a person wherein the amount of said financial transaction increasingly deviates from prior requested amounts based upon said previously acquired data for said person;

a different communications channel data currently associated with said request to execute said financial transaction than communications channel data for said person based upon said previously acquired data for said person; and

a different communications device utilized by said person than communications device for said person based upon said previously acquired data for said person.

22. A method of confirming identity as claimed in claim 21 wherein said communications channel data is channel data from the group of channel data representing an Internet Protocol (IP) address, a telephone caller id, and an automatic number identification (ANI) and wherein said communications device is a communications device from the group of devices including a computer, a personal digital assistant (PDA), a land-line telephone, and a cellular telephone.

23. A method of confirming identity as claimed in claim 22 wherein said acquired data includes a password unique to said person.

24. A computerized method of confirming identity of a person who requests to execute a financial transaction using time-based and cost-based hierarchal confirmatory and clearance processes, said person seeking to execute said financial transaction via one communications device from the group of devices including a computer, a personal digital assistant (PDA), a land-line telephone, and a cellular telephone, the method comprising:

(a) automatically selecting, based upon time and cost factors and said communications device, two or more of the following plurality of confirmatory processes;

a voice responsive interactive session, having an assigned representative first time and cost factors, with said person by comparing converted voice responsive data with a first set of acquired data potentially representative of said person;

an interactive electronic data session, having an assigned representative third time and cost factors, comparing electronic responsive data from said person with said first set or a second set of acquired data potentially representative of said person;

acquiring and comparing a third set of acquired data, having an assigned representative fourth time and cost factors, with data from said person;

acquiring and comparing further sets of acquired data, each having an assigned representative further time and cost factor, with data from said person, each said further set of acquired data having one of a higher cost factor or a longer data acquisition factor or both a higher cost factor and a longer data acquisition factor;

(b) employing more comprehensive confirmatory processes, defined by either a higher cost factor or a higher time factor or both a higher cost factor and a higher time factor, based upon a plurality of external factors from the group including;

a frequency of inquiry for said person, previously acquired data for said person, charge back data for said person, bill payment data for said person, amount of said financial transaction, a communications channel data associated with said person seeking said financial transaction, a communications device utilized by said person seeking to execute said financial transaction, a random selection, and a sampling rate for financial transactions;

(c) processing said request for said financial transaction; and

(d) clearing or rejecting said financial transaction based upon the confirmatory processes.

25. A method of confirming identity as claimed in claim 24 wherein said operated assisted Q and A session includes comparing answers from said person with previously acquired data for said person.

26. A computerized method of confirming identity as claimed in claim 24 including electronically gathering said first, second, third and nth set of acquired data from commercial data sources.

27. A computerized method of confirming identity as claimed in claim 26 wherein said commercial data sources have respective assigned data acquisition times and respective assigned data acquisition costs, said time and cost factors of respective confirmatory processes affected by the assigned data acquisition times and an assigned data acquisition costs for said commercial data sources.

28. A computerized method of confirming identity as claimed in claim 27 wherein a respective confirmatory process of said group of confirmatory processes have

a respective assigned time factor which is a nominal time factor and a respective assigned cost factor having a value of zero or greater, said nominal time factor associated with system stored data;

or

a respective assigned cost factor which is a nominal cost factor and a respective assigned time factor having an assigned value of substantially instantaneous or a higher time value, said substantially instantaneous time factor associated with system stored data;

and the method includes

selecting confirmatory processes that have low cost and time factors initially and acquiring said nth set of acquired data based upon predetermined one of said group of external factors.

29. A computerized method of confirming identity as claimed in claim 28 wherein said time factor assigned to each confirmatory process includes a data presentation time to said person and an inquiry response time from said person.

30. A computerized method of confirming identity as claimed in claim 29 wherein more comprehensive confirmatory processes are selected based upon one or more of the following characteristics of said plurality of external factors:

increasingly higher frequencies of inquiry compared to frequencies of inquiry incorporated as part of said previously acquired data for said person;

increasingly higher amounts of said financial transaction;

increasingly higher amounts of said financial transaction for said person based upon said previously acquired data for said person;

requests for financial transactions from a person wherein the amount of said financial transaction increasingly deviates from prior requested amounts based upon said previously acquired data for said person;

a different communications channel data currently associated with said request to execute said financial transaction than communications channel data for said person based upon said previously acquired data for said person; and

a different communications device utilized by said person than communications device for said person based upon said previously acquired data for said person.

31. A computerized method of confirming identity as claimed in claim 30 including detecting communications channel data from said person'"'"'s communications device, said communications channel data being an Internet Protocol (IP) address, a telephone caller id, and an automatic number identification (ANI) based upon the person'"'"'s communications device.

32. A computerized method of confirming identity as claimed in claim 31 wherein said acquired data includes a password unique to said person which was previously stored and associated with said person.