Privacy Protected Anti Identity Theft and Payment Network

• US 20100250364A1
• Filed: 12/15/2009
• Published: 09/30/2010
• Est. Priority Date: 03/30/2009
• Status: Active Grant

• Current Assignee: Apex Techlink Incorporated
• Original Assignee: Alexander Song, Catherine Lew, Victoria Song, Yuh-Shen Song
• Inventors: Song, Victoria, Song, Alexander, Lew, Catherine, Song, Yuh-shen
• Granted Patent: US 9,886,693 B2
• Time in Patent Office: Days
• US Class Current: 705/14.470
• CPC Class Codes: G06F 21/33 using certificates
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• 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 20/32 using wireless devices
• CPC Class Codes: G06Q 20/38 Payment protocols; Details thereof
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• 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 20/401 Transaction verification
• CPC Class Codes: G06Q 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/40145 Biometric identity checks
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/0248 Avoiding fraud
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 50/265 Personal security, identity or safety
• CPC Class Codes: H04L 63/101 Access control lists [ACL]
• CPC Class Codes: H04L 63/102 : Entity profiles

Abstract

A computerized and networked system protects individuals against identity theft without the need to disclose the detailed personal information of the individuals. Furthermore, the system helps prevent loss and damage to consumers, financial institutions and merchants caused by financial crimes related to identity theft. In addition, users can conduct payments in a secure manner without the need to use any traditional financial instrument. A pass code can be generated for each transaction and sent to a user'"'"'s personal communications device. When the correct pass code is received from the user, the transaction is then authorized.

Claims

1. A computer system to prevent identity theft, comprising:

a computer processor and a memory device coupled to a network;

a database stored on the memory device adapted to store at least a first set of data derived from a consumer'"'"'s personal information in a manner in which the consumer'"'"'s personal information cannot be recovered from the first set of data, the database further being adapted to store, associated with the first set of data, at least one of a photo of a consumer and a challenge question and corresponding answer created by the consumer; and

a communications device transmitting in response to instructions from the processor at least one of the photo and the challenge question to a user via the network when the processor receives from the user a second set of data from the network, the second set of data corresponding to the first set of data and being associated with a subject.

2. The computer system of claim 1, in which the communications device transmits the photo and receives over the network from the user a response indicating whether the photo of the consumer matches an appearance of the subject, the communication device sending an alert to the consumer when the response indicates possible fraud.

3. The computer system of claim 1, in which the communications device transmits the photo and receives over the network from the user a response indicating whether the photo of the consumer matches an appearance of the subject, the communication device sending an alert to a financial institution of the consumer when the response indicates possible fraud.

4. The computer system of claim 1, in which the communications device transmits the challenge question and receives over the network from the user a reply, the communication device sending an alert to the consumer when the reply indicates possible fraud.

5. The computer system of claim 1, in which the communications device transmits the challenge question and receives over the network from the user a reply, the communication device sending an alert to a financial institution of the consumer when the reply indicates possible fraud.

6. The computer system of claim 1, wherein the personal information includes data obtained from at least one of a financial instrument and an identification document.

7. The computer system of claim 6 wherein the financial instrument is at least one of a credit card, debit card, ATM card, gift card, pre-paid card, stored-value card, check, monetary instrument, financial account instrument, brokerage account instrument, insurance account instrument, benefits account instrument, mobile account instrument, and instrument issued by the computer system.

8. The computer system of claim 6 wherein the identification document comprises at least one of a driver'"'"'s license, passport, government-issued identification document, alien identification card, student identification card, social security card, tax identification card, national identification card, voter identification card, benefits card, official identification document, and an identification document issued by the computer system.

9. The computer system of claim 3 in which a computer system of the financial institution protects the consumer against fraud and other potential crimes.

10. The computer system of claim 5 in which a computer system of the financial institution protects the consumer against fraud and other potential crimes.

11. A computer system to prevent identity theft, comprising:

a computer processor and a memory device coupled to a network;

a pass code generator operable on the computer processor to create a new single use, expiring pass code in response to each log in attempt from a user at a source application;

a first communications device, responsive to generation of the pass code, that transmits the pass code to the user at a destination other than the source application, in substantially real-time, and

a second communications device transmitting a login authorization for the source application when the pass code is received from the user at the source application before the pass code expires.

12. The computer system of claim 11, in which the first communications device and the second communication device are integrated as single device.

13. The computer system of claim 11, in which the destination comprises a personal communications device.

14. The computer system of claim 11 in which the processor generates instructions to block the user from further activities when a user activity pattern corresponds to a pre-defined condition.

15. The computer system of claim 11 in which the processor generates instructions to block the user from further activities when a pre-defined number of incorrect pass codes have been received.

16. The computer system of claim 11 in which the processor generates instructions to send an alert of possible fraud to the user when an incorrect pass code is received.

17. A computer system to prevent identity theft during a financial transaction between a payer and a payee, comprising:

a computer processor and a memory device coupled to a network;

a pass code generator operable on the computer processor to create a pass code, in response to initiation of the financial transaction; and

a communications device, responsive to initiation of the financial transaction, transmitting the pass code to a personal communications device of the payer in substantially real-time, the computer processor generating instructions to transfer a transaction amount from a payer account to a payee account when the pass code is received back from the payee.

18. A computer system to prevent identity fraud during a financial transaction between a payer and a payee, comprising:

a computer processor and a memory device coupled to a network;

a pass code generator operable on the computer processor to create a new single use, expiring pass code, in response to initiation of the financial transaction and in response to receiving a transaction amount and an indication of whether an available amount of funds in a user account is sufficient for the transaction amount, the computer processor generating instructions to freeze the transaction amount in the user account; and

a communications device, responsive to the freezing of the transaction amount, transmitting the pass code to the user in substantially real-time, the computer processor generating instructions to transfer the frozen transaction amount from the user account to an account associated with a payee when the pass code is received back from the payee before the pass code expires.

19. The computer system of claim 18 in which the processor generates instructions to block the user from further activities when a user activity pattern corresponds to a pre-defined condition.

20. The computer system of claim 18 in which the processor generates instructions to block the user from further activities when a pre-defined number of incorrect pass codes have been received.

21. The computer system of claim 18 in which the processor generates instructions to send an alert of possible fraud to the user when an incorrect pass code is received.

22. A computerized method to prevent identity theft during a financial transaction between a payer and a payee, comprising:

receiving a transaction amount and a payer'"'"'s identification information from a payee;

generating a new pass code in response to receipt of the transaction amount when an available amount of funds in a payer'"'"'s account is sufficient for the transaction amount;

freezing the transaction amount in the payer'"'"'s account,

transmitting the new pass code to the payer in substantially real time in response to freezing of the transaction amount in the payer'"'"'s account; and

transferring the frozen transaction amount to a payee'"'"'s account when the new pass code is received from the payee.

23. A computerized method to prevent identity theft during an account login process, comprising:

receiving a user ID and a password from a user attempting to login to an account;

generating a new single use, expiring pass code, when the user ID and the password correspond to the account;

transmitting, in substantially real time, the new pass code to a personal communications device associated with a registered holder of the account; and

permitting the user to login to the account when the new pass code is received from the user before the pass code expires.

24. A computer system to prevent consumer identity theft, comprising:

a computer processor and a memory device coupled to a network;

the computer processor receiving over the network from a consumer contact information, an expiration date of a fraud alert, and a desired early warning period to renew the fraud alert;

the computer processor transmitting to the consumer on occurrence of the desired early warning period a reminder to post a new fraud alert with at least one credit report company; and

the computer processor receiving from the consumer a new expiration date for the new fraud alert.

25. A computer system to prevent consumer identity theft, comprising:

a computer processor and a memory device coupled to a network;

the computer processor receiving over the network from a consumer identification information recognized by at least one credit report company and a request to post a fraud alert;

the computer processor requesting the credit report company to post the fraud alert on behalf of the consumer based on the identification information; and

the computer processor requesting the credit report company to repeat the fraud alert post when the fraud alert is about to expire.

26. A computer system to prevent consumer identity theft, comprising:

a computer processor and a memory device coupled to a network;

the computer processor receiving over the network from a consumer personal information and a request to post a fraud alert;

the computer processor logging in to at least one credit report company on behalf of the consumer and submitting a request to post the fraud alert on behalf of the consumer; and

the processor repeating the request to post the fraud alert when the fraud alert is about to expire.

27. A computer system to determine reliability of personal identification data, provided by a presumed consumer, based on analyses from a plurality of third parties comprising:

a computer processor and a memory device coupled to a network;

a database stored on the memory device adapted to store at least the presumed consumer'"'"'s identification data and corresponding data to be verified; and

a communications device transmitting the data to be verified to a third party when the processor receives the presumed consumer'"'"'s identification data from the third party, the communications device receiving a reply from the third party indicating whether the data to be verified is accurate;

wherein the computer processor determines a degree of reliability of the presumed consumer'"'"'s personal identification information based on activities, patterns, and/or characteristics of the presumed consumer, which are based upon a plurality of replies received from the plurality of third parties and based upon activities, patterns, and/or characteristics of the plurality of third parties.

28. A computerized method to prevent identity theft, comprising:

receiving identification information from a presumed consumer;

storing the identification information in a database;

receiving a personal phone number from the presumed consumer;

storing the personal phone number associated with the identification information of the presumed consumer in the database;

searching the database to determine whether previously stored identification information has already been associated with the personal phone number received from the presumed consumer; and

when previously stored identification information has already been associated with the personal phone number received from the presumed consumer, indicating a potential identity theft by the presumed consumer when the identification information received from the presumed consumer does not correspond to the previously stored identification information.

29. The computerized method of claim 28, further comprising:

comparing the identification information received from the presumed consumer with identification information received from a third party and associated with a phone account corresponding to the personal phone number received from the presumed consumer; and

indicating a potential identity theft by the presumed consumer when the identification information received from the presumed consumer does not correspond to the identification information received from the third party.

30. A privacy-protected computerized method to conduct a marketing campaign for merchants which may not have contact information of consumers, comprising:

opening an account for a merchant;

opening an account for a consumer and storing consumer contact information and consumer identification information in a database;

receiving identification information of a presumed consumer from the merchant;

conducting identity verification on the presumed consumer for the merchant based on the presumed consumer identification information;

storing a link between the consumer account and the merchant account in a database when the presumed consumer identification information corresponds to consumer identification information; and

sending marketing information to the consumer on behalf of the merchant based on the link associated with the merchant and the stored contact information of the consumer.