Method for detecting misuse of identity in electronic transactions

• US 9,727,867 B2
• Filed: 04/21/2016
• Issued: 08/08/2017
• Est. Priority Date: 04/26/2005
• Status: Active Grant

• Current Assignee: Spriv LLC
• Original Assignee: Guy Hefetz
• Inventors: Hefetz, Guy, Wood, Christopher Donald, Heffez, Jacob
• Primary Examiner(s): St Cyr, Daniel
• Application Number:
  US15/134,545
• Publication Number:
  US 20160232531A1
• Time in Patent Office: 474 Days
• Field of Search: 235380, 235382, 235385, 23546245, 23547202
• CPC Class Codes: G06F 21/44 Program or device authentication
• CPC Class Codes: G06F 21/73 by creating or determining hardware identification, e.g. serial numbers
• CPC Class Codes: G06F 2221/2111 Location-sensitive, e.g. geographical location, GPS
• CPC Class Codes: G06Q 20/3224 Transactions dependent on location of M-devices
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 50/265 Personal security, identity or safety
• CPC Class Codes: H04L 63/0853 using an additional device, e.g. smartcard, SIM or a different communication terminal cryptographic mechanisms or cryptographic arrangements for entity authentication involving additional secure or trusted devices H04L9/3234
• CPC Class Codes: H04L 63/107 wherein the security policies are location-dependent, e.g. entities privileges depend on current location or allowing specific operations only from locally connected terminals
• CPC Class Codes: H04M 15/8033 location-dependent, e.g. business or home
• CPC Class Codes: H04W 12/06 Authentication
• CPC Class Codes: H04W 12/12 Detection or prevention of fraud
• CPC Class Codes: H04W 12/63 Location-dependent; Proximity-dependent
• CPC Class Codes: H04W 4/02 Services making use of location information
• CPC Class Codes: H04W 4/029 Location-based management or tracking services
• CPC Class Codes: H04W 4/80 Services using short range communication, e.g. near-field communication [NFC], radio-frequency identification [RFID] or low energy communication

Abstract

The invention provides methods for determining whether a transaction has taken place in geographic proximity to a wireless device. Upon receiving a notification to authenticate the use of an identity at a transaction location, where the identity is associated with a wireless terminal, the method determines an approximate location of the wireless terminal based on cached position information, GPS location, cellular geo-location, and/or Wi-Fi geolocation, and determines whether one or more of these is in geographic proximity to the location of the transaction.

Claims

1. A method of detecting possible fraudulent use of an identity associated with a user in a transaction, comprising:

(a) associating a user identity with a wireless terminal;

(b) caching on the wireless terminal a pre-transaction second location of the wireless terminal;

(c) receiving a notification to authenticate the use of the identity at a first location;

(d) obtaining from the wireless terminal the cached pre-transaction second location of the wireless terminal;

(e) obtaining a first time stamp for the first location and a second time stamp for the second location, and calculating a speed required to move from the first location to the second location in the time elapsed between the first time stamp and the second time stamp;

(f) generating an alert if the speed is above a predetermined value; and

(g) communicating the alert to a predetermined device.

2. The method of claim 1, wherein the second location in step (b) is identified via detection of a Wi-Fi unique ID corresponding with a known location, said Wi-Fi unique ID comprising a MAC Address.

3. The method of claim 1, further comprising the step of determining whether the second location cached at step (b) is stale.

4. The method of claim 3, further comprising the step of requesting a fresh second location of the wireless terminal if the second location cached at step (b) is determined to be stale.

5. The method of claim 3 wherein the cached second location is determined to be stale if the cached second location has not been updated within a predetermined time period.

6. The method of claim 1 wherein the first location is the user'"'"'s home address.

7. The method of claim 1 wherein the first location is the user'"'"'s work address.

8. The method of claim 1 wherein the notification to authenticate is received in connection with an online transaction, and the first location and second location are obtained vii the Internet.

9. The method of claim 1 wherein the first location is the user'"'"'s work address.

10. The method of claim 1 wherein the notification to authenticate is received in connection with an online transaction, and the first location and second location are obtained via the Internet.

11. A method of detecting possible fraudulent use of an identity associated with a user in a transaction, comprising:

(a) associating the user identity with a wireless terminal;

(b) receiving a notification to authenticate the use of the identity at a first location;

(c) obtaining a pre-transaction second location of the wireless terminal based on cached position information stored on the wireless terminal, if the cached position information is stored on the wireless terminal;

otherwise

(d) obtaining from the wireless terminal a post-transaction second location of the wireless terminal;

(e) obtaining a first time stamp for the first location and a second time stamp for the second location, and calculating a speed required to move from the first location to the second location in the time elapsed between the first time stamp and the second time stamp;

(f) generating an alert if the speed is above a predetermined value; and

(g) communicating the alert to a predetermined device.

12. The method of claim 11, wherein the second location in step (c) is identified via detection of a Wi-Fi unique ID corresponding with a known location, said Wi-Fi unique ID comprising a MAC Address.

13. The method of claim 11 wherein the first location is the user'"'"'s work address.

14. A method of detecting possible fraudulent use of an identity associated with a user in a transaction, comprising:

(a) associating a user identity with a wireless terminal;

(b) caching on a remote database a pre-transaction second location of the wireless terminal;

(c) receiving a notification to authenticate the use of the identity at a first location;

(d) obtaining from the remote database the cached pre-transaction second location of the wireless terminal;

(e) obtaining a first time stamp for the first location and a second time stamp for the second location, and calculating a speed required to move from the first location to the second location in the time elapsed between the first time stamp and the second time stamp;

(f) generating an alert if the speed is above a predetermined value; and

(g) communicating the alert to a predetermined device.

15. The method of claim 14, wherein the second location in step (b) is identified via detection of a Wi-Fi unique ID corresponding with a known location, said Wi-Fi unique ID comprising a MAC Address.

16. The method of claim 14, further comprising the step of determining whether the second location cached at step (b) is stale.

17. The method of claim 16, further comprising the step of requesting a fresh second location of the wireless terminal if the second location cached at step (b) is determined to be stale.

18. The method of claim 16 wherein the cached location is determined to be stale if the cached second location has not been updated within a predetermined time period.

19. The method of claim 14 wherein the first location is the user'"'"'s work address.

20. The method of claim 14 wherein the notification to authenticate is received in connection with an online transaction, and the first location and second location are obtained via the Internet.