Direct authentication and authorization system and method for trusted network of financial institutions

• US 7,444,676 B1
• Filed: 09/30/2005
• Issued: 10/28/2008
• Est. Priority Date: 08/29/2001
• Status: Expired due to Fees

• Current Assignee: Kamran Asghari-Kamrani, Nader Asghari-Kamrani
• Original Assignee: Kamran Asghari-Kamrani, Nader Asghari-Kamrani
• Inventors: Asghari-Kamrani, Nader, Asghari-Kamrani, Kamran
• Primary Examiner(s): Lanier, Benjamin E.
• Assistant Examiner(s): Nobahar, Abdulhakim
• Application Number:
  US11/239,046
• Time in Patent Office: 1,124 Days
• Field of Search: 726/4, 726/21, 713/168, 713/170, 705/64, 705/67, 705/44
• US Class Current: 726/21
• CPC Class Codes: G06F 21/31 User authentication
• CPC Class Codes: G06F 21/40 by quorum, i.e. whereby two or more security principals are required
• CPC Class Codes: G06F 21/6245 Protecting personal data, e.g. for financial or medical purposes
• CPC Class Codes: G06F 2221/2115 Third party
• CPC Class Codes: G06Q 20/04 Payment circuits
• 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 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• 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 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 30/0225 Avoiding frauds
• 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: H04L 63/0421 Anonymous communication, i.e. the party's identifiers are hidden from the other party or parties, e.g. using an anonymizer
• CPC Class Codes: H04L 63/08 for authentication of entities cryptographic mechanisms or cryptographic arrangements for entity authentication H04L9/32
• CPC Class Codes: H04L 63/0838 using one-time-passwords

Abstract

A system and method for direct authentication and/or authorization of transactions. The system includes a trusted Digital Identity (DID) Network connecting an Originating Participating Financial Institution (OPFI) and a Receiving Participating Financial Institution (RPFI) through a DID Operator. The DID Operator may further be coupled to a DID System that calculates digital identities for Originators. According to the method, direct authentication of the Originator and/or authorization of the transaction is initiated upon the Originator communicating its digital identity to the Receiver. The Receiver subsequently provides the digital identity to the RPFI. The RPFI is then able to communicate with the OPFI for authentication of the Originator and/or authorization of the transaction through the DID Operator based on Originator'"'"'s digital identity. The transaction between the Originator and Receiver can be financial or non-financial and may include, for example, account-to-account transfers, identity authentication or express agreements. In another embodiment, authentication and/or authorization may be performed in real time.

Claims

1. A method for performing a secure transaction between an Originating Participating Financial Institution and a Receiving Participating Financial Institution on behalf of an Originator initiating the transaction, the method comprising the steps of:

a) providing a Digital Identity Operator connecting the Originating Participating Financial Institution to the Receiving Participating Financial Institution via a trusted Digital Identity Network;

b) an Originator authenticating himself to the Originating Participating Financial Institution to initiate the transaction;

c) upon successful authentication, the Originating Participating Financial Institution submitting a request for a new digital identity for the Originator to the Digital Identity Operator;

d) the Digital Identity Operator processing the request, dynamically generating a new digital identity that is non-predictable, time dependent and unique to the Originator only, and returning said digital identity to the Originating Participating Financial Institution;

e) the Originating Participating Financial Institution receiving said dynamically generated digital identity and providing said digital identity to the Originator;

f) the Originator providing said digital identity to the Receiving Participating Financial Institution either directly, or indirectly through a Receiver;

g) the Receiving Participating Financial Institution validating said digital identity by forwarding said digital identity to the Digital Identity Operator; and

h) upon receiving a Digital Identity Message, the Originating Participating Financial Institution and Receiving Participating Financial Institution performing the transaction.

2. The method of claim 1, wherein the Digital Identity Operator validates said digital identity based at least in part upon whether said digital identity is from the Originator.

3. The method of claim 1, wherein said digital identity submitted to the Receiving Participating Financial Institution provides at least the same level of assurance as a physical signature, thereby manifesting the Originator'"'"'s assent to the transaction.

4. The method of claim 1, wherein the transaction corresponds to a non-financial transaction comprising an identity authentication and/or express agreement.

5. The method of claim 1, wherein said digital identity submitted to the Receiving Participating Financial Institution enables the Receiving Participating Financial Institution to authenticate the Originator.

6. The method of claim 1, wherein the transaction corresponds to an account to account funds transfer, an inter-bank funds transfer, a credit push, and/or a debit pull.

7. A system for performing a secure transaction between an Originating Participating Financial Institution and a Receiving Participating Financial Institution on behalf of an Originator initiating the transaction, the system comprising:

a Digital Identity Operator connecting the Originating Participating Financial Institution to the Receiving Participating Financial Institution via a trusted Digital Identity Network;

an Originator that initiates the transaction by authenticating himself to the Originating Participating Financial Institution over a communication network;

the Digital Identity Operator adapted to receive a request for a new digital identity from the Originating Participating Financial Institution and dynamically generate a digital identity that is non-predictable, time dependent and unique to the Originator only, and to return said digital identity to the Originating Participating Financial Institution;

the Originating Participating Financial Institution further adapted to receive said generated digital identity and provide said digital identity to the Originator;

whereby the Originator provides said digital identity to the Receiving Participating Financial Institution either directly, or indirectly through a Receiver;

the Receiving Participating Financial Institution adapted to validate said digital identity by forwarding said digital identity to the Digital Identity Operator;

the Digital Identity Operator further adapted to validate said digital identity and, if valid, to send a Digital identity Message to the Originating Participating Financial Institution and/or Receiving Participating Financial Institution;

whereby upon receipt of the Digital Identity Message, the Originating Participating Financial Institution and the Receiving Participating Financial Institution perform the transaction.

8. The system of claim 7, wherein the Digital Identity Operator validates said digital identity based at least in part upon whether the digital identity is from the Originator.

9. The system of claim 7, wherein the digital identity submitted to the Receiver provides at least the same level of assurance as a physical signature, thereby manifesting the Originator'"'"'s assent to the transaction.

10. The system of claim 7, wherein the transaction corresponds to a non-financial transaction.

11. The system of claim 10, wherein the non-financial transaction corresponds to an identity authentication and/or express agreement.

12. The system of claim 7, wherein the transaction corresponds to an account to account funds transfer, an inter-bank funds transfer, a credit push, and/or a debit pull.

13. A system for authenticating an Originator and receiving the Originator'"'"'s authorization for a secure transaction in e-commerce based on digital identity, the system comprising:

an Originator in communication with a Receiver over a public communication network and needing to perform a secure transaction with the Receiver;

the Receiver adapted to require the Originator to authenticate himself and authorize the transaction by providing a valid digital identity before performing the transaction;

the Originator further in communication with an Originating Participating Financial Institution;

the Originating Participating Financial Institution adapted to request and receive a dynamically-generated non-predictable and time-dependent digital identity from a Digital Identity Operator, wherein said dynamically-generated digital identity is unique to the Originator only;

the Originating Participating Financial Institution adapted to forward said digital identity to the Originator;

whereby the Originator submits said digital identity to the Receiver and the Receiver forwards said digital identity to the Digital Identity Operator for verification and validation; and

whereby upon successful validation by the Digital Identity Operator, the Receiver positively authenticates the Originator and receives proof of the Originator'"'"'s authorization for the transaction.

14. The system of claim 13, wherein the Receiver is in communication with the Digital Identity Operator via a Receiving Participating Financial Institution.

15. The system of claim 14, wherein the Receiver and Originator perform the transaction via the Receiving Participating Financial Institution and the Originating Participating Financial Institution, respectively.

16. The system of claim 13, wherein the Digital Identity Operator validates said digital identity based at least in part upon whether the digital identity is from the Originator.

17. The system of claim 13, wherein the digital identity submitted to the Receiving Participating Financial Institution provides at least the same level of assurance as a physical signature, thereby manifesting the Originator'"'"'s assent to the transaction.

18. The system of claim 13, wherein the transaction corresponds to a non-financial transaction.

19. The system of claim 18, wherein the non-financial transaction corresponds to an identity authentication and/or express agreement.

20. The system of claim 13, wherein the transaction corresponds to an account to account finds transfer, an inter-bank funds transfer, a credit push, and/or a debit pull.