METHOD OF PREVENTING FRAUD

• US 20080027858A1
• Filed: 11/09/2006
• Published: 01/31/2008
• Est. Priority Date: 07/26/2006
• Status: Abandoned Application

• Current Assignee: Tracey M. Benson
• Original Assignee: Tracey M. Benson
• Inventors: Benson, Tracey M.
• Application Number:
  US11/558,325
• Publication Number:
  US 20080027858A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

An identification verification system designed to prevent identity theft and financial fraud. Individuals are given or select identification codes which replace the commonly used social security numbers (SSNs). In order to access an individual'"'"'s credit report or other financial records or open a credit account, the individual'"'"'s identification code must be provided. Individuals, therefore, no longer have to provide their SSN in order to verify their identity. An individual'"'"'s identity is verified only if the identification code submitted by the individual matches their identification code as found in a database. Individuals may choose to have their identification codes automatically changed periodically, or may choose to change their identification codes themselves as often as they wish. Identification codes are preferably changed upon each access to the individual'"'"'s credit report or credit account opening.

Claims

1. A method whereby the identity of an individual or entity is verified, comprising:

receiving identification information for an individual or entity, excluding a social security number;

checking the identification information against a database containing archived identification information;

indicating whether the identification information received is valid; and

changing the identification information after each said checking the identification information against the database containing archived identification information.

2. The method of claim 1, wherein said checking is performed in order to permit or deny access to a credit report or other financial record, or to open a credit account.

3. The method of claim 1, wherein the identification information is an alphabetical, numerical, or alphanumerical code of at least six characters.

4. The method of claim 1, wherein the database contains all currently valid, and all expired, identification information.

5. The method of claim 1, wherein the identification information is compared to the archived identification information, and an identity of the individual or entity is verified only if the identification information matches the archived identification information.

6. The method of claim 1, further comprising associating and recording the identification information with a party that sent and thus caused the receiving identification information for an individual or entity.

7. The method of claim 4, wherein an alert may be generated when the expired identification information is attempted to be used.

8. The method of claim 5, wherein the identification information is compared to the archived identification information in the database by electronic means.

9. A secure method of accessing an individual'"'"'s credit report, opening a credit account, or accessing other financial records comprising:

assigning a one time use identification code to the individual, excluding a social security number;

requesting the individual'"'"'s identification code;

comparing the identification code submitted by the individual against a database of identification codes; and

determining whether to verify the individual'"'"'s identity based on whether the identification code they submitted matches an identification code in said database.

10. The method of claim 9, wherein said individual'"'"'s identification code may be alphabetical, numerical, or alphanumerical, and must contain at least six characters.

11. The method of claim 9, wherein said individual'"'"'s identification code may be changed automatically periodically, may be changed upon the request of the individual, or may be changed upon the happening of an event.

12. The method of claim 9, wherein said comparing the identification code submitted by the individual against a database of identification codes is performed by electronic means.

13. The method of claim 9, wherein said database contains viable identification codes as well as expired identification codes.

14. The method of claim 13, wherein the usage of expired identification codes may lead to an alert being generated.

15. An operating method for a new credit bureau, or similar institution, comprising:

compiling or gaining access to the financial information of United States citizens, excluding a social security number;

providing summaries, reports, detailed copies, or assessment scores of said citizens'"'"' financial information; and

utilizing a secure method of accessing an individual'"'"'s credit report to provide identity verification services to its customers.