Verifying financial services card transactions using tags

• US 7,083,085 B1
• Filed: 05/12/2005
• Issued: 08/01/2006
• Est. Priority Date: 05/12/2005
• Status: Expired due to Fees

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Daniels, Fonda J., Figgins, Timothy Earl, Kumhyr, David Bruce, Senegal, John Kenneth
• Primary Examiner(s): Le, Thien M.
• Assistant Examiner(s): Caputo, Lisa M.
• Application Number:
  US10/908,444
• Time in Patent Office: 446 Days
• Field of Search: 235/380, 235/382, 705 16- 18
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• 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: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/086 by passive credit-cards adapted therefor, e.g. constructive particularities to avoid counterfeiting, e.g. by inclusion of a physical or chemical security-layer for security documents G07D7/00; for the reading of record-carriers in general G06K7/00; for the design of coded credit-cards G06K19/10
• CPC Class Codes: G07F 7/125 Offline card verification

Abstract

For added security against fraud, a financial services card such as a credit card is paired with a separate tag such as an RFID tag. A system for minimizing fraud includes a card reader for reading a card ID, a tag reader for reading a tag ID, and a controller for comparing the card ID with the tag ID, and approving or rejecting a card transaction based on the comparison. A method for minimizing fraud includes reading a card ID from the financial services card, reading a tag ID from the tag, comparing the tag ID with the card ID, and approving or rejecting a transaction based on the comparison. The card reader may send a security stamp to the tag, which may combine and encrypt a partial tag ID and the security stamp to provide the tag ID.

Claims

1. A tag to accompany a financial services card for verifying a financial services card transaction by reading a card ID from the financial services card, reading a tag ID from the tag, and approving a transaction with the financial services card based on comparing the card ID with the tag ID, said tag being separate from the financial services card, said tag comprising:

a transceiver to receive a security stamp from a tag reader and to return a tag ID to the tag reader;

logic to combine the security stamp with a partial tag ID previously stored in the tag and to encrypt the resulting combination using an encryption key previously stored in the tag, to provide the tag ID returned to the tag reader by the transceiver; and

a battery and a high control impedance switch that applies the battery to power the transceiver and the logic, responsive to an electrical signal derived by passive components of the transceiver from a field emitted by the tag reader.