Validating negotiable documents using public document validation profiles

• US 7,584,128 B2
• Filed: 08/18/2005
• Issued: 09/01/2009
• Est. Priority Date: 08/18/2004
• Status: Active Grant

• Current Assignee: Kappa Image LLC
• Original Assignee: Kappa Image LLC
• Inventors: Houle, Gilles F., Mason, James G.
• Primary Examiner(s): CHEUNG, MARY DA ZHI WANG
• Application Number:
  US11/207,464
• Publication Number:
  US 20060041506A1
• Time in Patent Office: 1,475 Days
• Field of Search: 382/135, 382/232, 382137-140, 705/35, 705 39- 45, 705 75- 77, 713/168, 713175-180, 380 28- 30
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• 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 20/4015 using location information
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07D 7/004 using digital security elements, e.g. information coded on a magnetic thread or strip
• CPC Class Codes: G07F 7/04 by paper currency
• 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 7/12 Card verification

Abstract

A system and method that allows a business or financial institution accepting negotiable documents such as checks as payments or receiving such documents in deposits to determine whether those documents are valid by comparing a set of document and maker characteristics extracted from an image of the document to the document and maker characteristics for valid documents stored in a profile. These characteristics are contained in a public document validation profile. The public document validation profile does not require the distribution of information subject to privacy laws and regulations and does not expose information of potential use to fraud perpetrators.

Claims

1. A computer-implemented method of validating a first negotiable document drawn on an account, comprising:

extracting a set of characteristics from a plurality of negotiable documents that are known to be valid for the account;

storing a representation of a first subset of the set of characteristics from the plurality of negotiable documents in a public document validation profile associated with the account, wherein the public document validation profile is shared by the financial institution holding the account and at least one other financial institution;

generating an image of the first negotiable document using an imaging device;

extracting a plurality of characteristics from the image;

comparing, using a check validation computer system, the characteristics extracted from the image with at least the representation of the first subset of the set of characteristics to produce a comparison result;

if said comparison result is negative, comparing the plurality of characteristics extracted from the image with a private document validation profile associated with the account; and

affirming or negating the first negotiable document'"'"'s validity based on the comparison result.

2. The computer-implemented method of claim 1, further comprising validating whether the first negotiable document is filly negotiable.

3. The computer-implemented method of claim 1, further comprising:

storing a representation of a second subset of the set of characteristics associated with the plurality of other negotiable documents in the private document validation profile associated with the account, wherein the private document validation profile is available only to the financial institution holding the account.

4. The computer-implemented method of claim 1, wherein comparing the characteristics further comprises:

determining a numeric value indicating a level of match between the characteristics extracted from the image and corresponding characteristics extracted from the plurality of other negotiable documents.

5. The computer-implemented method of claim 1, wherein the set of characteristics include one or more characteristics associated with one or more foreground information fields on the negotiable documents;

wherein the one or more characteristics include;

a size of the information field, a

shape of the information field, an absolute location of the information field, a location of the information field relative to other information fields, and content of the information; and

wherein the foreground information fields include;

one or more fields identifying a payer, one or more fields identifying a financial institution holding the account, a magnetic ink character recognition field, a document number field, one or more fields identifying a payee, a legal amount field, a courtesy amount field, a date field, a signature field and a memo field.

6. A computer-implemented method of validating a first negotiable document drawn on an account, comprising:

generating an image of the first negotiable document using an imaging device;

extracting a plurality of characteristics from the image;

comparing, using a check validation computer system, the plurality of characteristics extracted from the image with characteristics extracted from a plurality of negotiable documents that are known to be valid for the account; and

affirming or negating the first negotiable document'"'"'s validity based on the comparison,

wherein the extracted characteristics include one or more characteristics associated with one or more foreground information fields on the first negotiable document,

wherein the characteristics include;

a size of the information field, a shape of the information field, an absolute location of the information field, and a location of the information field relative to other information fields, and

wherein the foreground information fields include;

one or more fields identifying a payer, one or more fields identifying a financial institution holding the account, a magnetic ink character recognition field, a document number field, one or more fields identifying a payee, a legal amount field, a courtesy amount field, a date field, a signature field and a memo field.

7. The computer-implemented method of claim 6, further comprising validating whether the first negotiable document is fully negotiable.

8. The computer-implemented method of claim 6, wherein a representation of a first subset of characteristics extracted from the plurality of other negotiable documents is stored in a public document validation profile associated with the account, wherein the public document validation profile is shared by the financial institution holding the account and at least one other financial institution, further comprising:

comparing the characteristics extracted from the image with the first subset of characteristics extracted from the plurality of other negotiable documents to produce a comparison result.

9. The computer-implemented method of claim 8, wherein a representation of a second subset of characteristics extracted from the plurality of other negotiable documents is stored in a private document validation profile associated with the account, wherein the private document validation profile is available only to the financial institution holding the account.

10. The computer-implemented method of claim 8, further comprising:

if said comparison result is negative, comparing the plurality of characteristics extracted from the image with the private document validation profile associated with the account; and

affirming or negating the first negotiable document'"'"'s validity in accordance with said comparison result.

11. The computer-implemented method of claim 6, wherein comparing further comprises:

determining a numeric value indicating a level of match between the characteristics extracted from the image and characteristics extracted from the plurality of other negotiable documents.

12. A system for detecting fraudulent negotiable documents drawn on an account, comprising:

an imaging device for capturing an image of a first negotiable document; and

a negotiable document validation module coupled to the imaging device, the negotiable document validation module further including;

an extraction module configured to extract a plurality of characteristics from the captured image of the first negotiable document,

a comparison module configured to compare the characteristics extracted from the image with characteristics extracted from plurality of negotiable documents that are known to be valid for the account, and

a validation module configured to affirm or negate the first negotiable document'"'"'s validity in accordance with said comparison result,

wherein the extracted characteristics include one or more characteristics associated with one or more foreground information fields on the first negotiable document,

wherein the characteristics include;

a size of the information field, a shape of the information field, an absolute location of the information field, and a location of the information field relative to other information fields, and

wherein the foreground information fields include;

one or more fields identifying a payer, one or more fields identifying a financial institution holding the account, a magnetic ink character recognition field, a document number field, one or more fields identifying a payee, a legal amount field, a courtesy amount field, a date field, a signature field and a memo field.

13. The system of claim 12, wherein a representation of a first subset of characteristics extracted from the plurality of other negotiable documents is stored in a public document validation profile associated with the account, wherein the public document validation profile is shared by the financial institution holding the account and at least one other financial institution, and wherein the comparison module is configured to compare the characteristics extracted from the image with characteristics in the first subset of characteristics extracted from the plurality of other negotiable documents to produce a comparison result.

14. The system of claim 13, wherein a representation of a second subset of characteristics extracted from the plurality of other negotiable documents is stored in a private document validation profile associated with the account, wherein the private document validation profile is available only to the financial institution holding the account.

15. The system of claim 14, wherein if said comparison result is negative, the comparison module is configured to compare the plurality of characteristics extracted from the image with characteristics in the private document validation profile associated with the account.

16. A computer-implemented method of creating one or more validation profiles for a financial account, comprising:

identifying a plurality of negotiable documents that are known to be valid for the financial account;

generating one or more respective images for one or more of the plurality of negotiable documents using an imaging device;

extracting a set of characteristics from the plurality of document images; and

storing a representation of a first subset of the set of characteristics in a public document validation profile associated with the financial account, wherein the public document validation profile is shared by the financial institution holding the account and at least one other financial institution,

wherein the set of characteristics include one or more characteristics associated with one or more foreground information fields on a negotiable document,

wherein the characteristics include;

a size of the information field, a shape of the information field, an absolute location of the information field, a location of the information field relative to other information fields, and content of the information, and

wherein the foreground information fields include;

one or more fields identifying a payer, one or more fields identifying a financial institution holding the account, a magnetic ink character recognition field, a document number field, one or more fields identifying a payee a legal amount field, a courtesy amount field, a date field, a signature field and a memo field.

17. The computer-implemented method of claim 16, further comprising:

storing a representation of a second subset of the set of characteristics in a private document validation profile with the account, wherein the private document validation profile is available only to the financial institution holding the account.

18. A computer-implemented method of validating a first negotiable document requesting or ordering transfer of value from an account, comprising:

accessing a public document validation profile,

wherein the public document validation profile includes a mathematical representation of a set characteristics extracted from a plurality of negotiable documents that are known to be valid for the account,

wherein the set of characteristics include one or more characteristics associated with one or more foreground information fields on the first negotiable document,

wherein the foreground characteristics include;

a size of the information field, a shape of the information field, an absolute location of the information field, and a location of the information field relative to other information fields, and

wherein the foreground information fields include;

one or more fields identifying a payer, one or more fields identifying a financial institution holding the account, a magnetic ink character recognition field, a document number field, one or more fields identifying a payee, a legal amount field, a courtesy amount field, a date field, a signature field and a memo field;

obtaining an image of the first negotiable document using an imaging device;

extracting a plurality of characteristics from the image;

comparing, using a check validation computer system, the plurality of characteristics with the public document validation profile associated with the account; and

affirming or negating the first negotiable document'"'"'s first validity in accordance with said comparison result.