System and method for private secure financial transactions

• US 7,379,916 B1
• Filed: 11/03/2000
• Issued: 05/27/2008
• Est. Priority Date: 11/03/2000
• Status: Active Grant

• Current Assignee: Authernative
• Original Assignee: Authernative
• Inventors: Mizrah, Len L.
• Primary Examiner(s): Colbert; Ella
• Application Number:
  US09/706,370
• Time in Patent Office: 2,762 Days
• Field of Search: 705/44, 705/50, 705/75, 705/79, 705/38, 705/39, 705/13, 705/1, 705/35, 707/100, 902/22, 902/1, 902/2, 902/7, 902/11, 713/201, 380 23- 25, 380/4, 380/9, 379/145, 235/379, 235/380, 235/382
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/3823 combining multiple encryption tools for a 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 20/425 using two different networks, one for transaction and one for security confirmation
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A clocked authentication, authorization and accounting (CAAA) system and method offers private and secure credit/debit card online and offline financial transactions (FT) including an embedded privacy and security layer (EPSL) architecture. EPSL includes an authentication stage prior to the authorization stage that is automated and enabled through a back office, and enhanced by associating the authentication stage with projected timing, security and accounting parameters. It enables legal financial account holders to perform buy/sell or withdraw/deposit transactions without disclosing private personal information to the transaction counterparts, while preserving highly elevated and enhanced security and fraud protection as compared with conventional methods. The CAAA method enables efficient mass user EPSL implementation at back offices utilizing high frequency synchronized global clocking of EPSL logic blocks.

Claims

1. A computer implemented method for server-side execution in support of financial transactions, comprising:

establishing an authentication record in memory accessible by server-side computer resources, in response to communications at a first time from a particular account holder, for a predicted transaction by the particular account holder, the authentication record for the predicted transaction includes a predicted transaction amount, a transaction time parameter, and an authenticated transaction signature for presentation upon execution of the predicted transaction, and sending a message including the authenticated transaction signature from the server-side computer resources to the particular account holder;

establishing an authorization record in memory accessible by server-side computer resources, in response to communications at a second time from a party to a particular transaction, for the particular transaction indicating an actual transaction amount, an actual transaction time and a presented transaction signature, wherein said establishing an authorization record does not require identification of the particular account holder;

reading and processing the authorization record and the authentication record in the server-side computer resources, and if the presented transaction signature in the authorization record matches the authenticated transaction signature in the authentication record for the predicted transaction, the actual transaction amount in the authorization record matches the predicted transaction amount in the authentication record and the actual transaction time in the authorization record matches the transaction time parameter in the authentication record, then sending an authorization message to the party of the particular transaction; and

performing an accounting process, including reconciling the predicted transaction amount and the actual transaction amount in the server-side computer resources, for the particular account holder.

2. The method of claim 1, including:

storing the authentication record in a database including a plurality of authentication records for other predicted transactions.

3. The method of claim 1, wherein the time parameter comprises a time value indicating the first time, when the authorization record was created.

4. The method of claim 1, wherein said matching includes determining whether the actual transaction time falls within a time interval indicated by the transaction time parameter.

5. The method of claim 1, wherein establishing an authentication record includes:

establishing a communication session with the particular account holder;

accepting an account number and an identification number for the particular account holder via the communication session;

accepting the predicted transaction amount via the communication session; and

producing the transaction signature.

6. The method of claim 5, including prompting the particular account holder to supply a combination of digits from a personal identification code, wherein the combination does not include all of the personal identification code.

7. The method of claim 1, wherein establishing an authorization record includes:

establishing a communication session with the party to the particular transaction; and

accepting the presented transaction signature and the actual transaction amount via the communication session.

8. The method of claim 7, including accepting identification of the party via the communication session.

9. The method of claim 8, including maintaining a list of authorized parties, and including determining whether the identification of the party accepted via the communication session indicates a party in the list of authorized parties.

10. The method of claim 1, wherein establishing an authentication record includes:

establishing a communication session with the particular account holder;

accepting an account number via the communication session;

prompting the particular account holder via the communication session to supply a static identification number and a dynamically identified combination of digits from a personal identification code, wherein the combination does not include all of the personal identification code;

accepting the predicted transaction amount via the communication session; and

producing the transaction signature and sending the transaction signature to the particular account holder.