Method for securing information relevant to a transaction

• US 5,793,302 A
• Filed: 11/12/1996
• Issued: 08/11/1998
• Est. Priority Date: 11/17/1992
• Status: Expired due to Term

• Current Assignee: Leon Stambler
• Original Assignee: Leon Stambler
• Inventors: Stambler, Leon
• Primary Examiner(s): ZIMMERMAN, BRIAN A
• Application Number:
  US08/747,174
• Time in Patent Office: 637 Days
• Field of Search: 340/825.31, 340/825.34, 380/43, 380/44, 380/45
• US Class Current: 340/5.86
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/347 Passive cards
• 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 20/401 Transaction verification
• 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 7/10 together with a coded signal , e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
• CPC Class Codes: G07F 7/1016 Devices or methods for securing the PIN and other transaction-data, e.g. by encryption arrangements for secret communication, see H04L9/00
• CPC Class Codes: G07F 7/1066 PIN data being compared to data on card
• CPC Class Codes: G07F 7/12 Card verification
• CPC Class Codes: G07F 7/125 Offline card verification
• CPC Class Codes: G16H 20/10 relating to drugs or medications, e.g. for ensuring correct administration to patients
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 9/3226 using a predetermined code, e.g. password, passphrase or PIN network architectures or network communication protocols for supporting authentication of entities using passwords in a packet data network H04L63/083

Abstract

A transaction system wherein, when a transaction, document or thing needs to be authenticated, information associated with one or more of the parties involved is coded together to produce a joint code. This joint code is then utilized to code information relevant to the transaction, document or record, in order to produce a variable authentication number (VAN) at the initiation of the transaction. This VAN is thereafter associated with the transaction and is recorded on the document or thing, along with the original information that was coded. During subsequent stages of the transaction, only parties capable of reconstructing the joint code will be able to uncode the VAN properly in order to re-derive the information. The joint code serves to authenticate the parties, and the comparison of the re-derived information against the information recorded on the document serves to authenticate the accuracy of that information.

Claims

1. A method for coding and storing information, comprising information associated with a party and other sensitive information, said information associated with a party being subsequently used to authenticate the party and authorize access, the method comprising:

previously receiving a first personal identification number (PIN1) from the party;

previously deriving or accessing first coded authentication information by using the first PIN1;

previously generating at least two numbers using the first coded authentication information, wherein at least one of the at least two numbers is an arbitrary number;

previously storing each of the at least two numbers in one or more storage means;

retrieving each of the at least two numbers previously stored in the one or more storage means;

receiving a second personal identification number (PIN2) from a party to be authenticated;

deriving or accessing second coded authentication information by using the second PIN2;

combining each of the at least two numbers retrieved from the one or more storage means to derive third coded authentication information;

comparing the second coded authentication information with the third coded authentication information; and

authenticating the party and authorizing access if the second coded authentication information and third coded authentication information correspond to each other.

2. The method of claim 1 further comprising:

coding said other sensitive information with said first or second or third coded authentication information to derive coded sensitive information.

3. The method of claim 1 further comprising:

uncoding said coded sensitive information with said second or third coded authentication information to recover the other sensitive information.

4. The method of claim 1 further comprising:

revising each of the at least two numbers at an arbitrary time; and

replacing each of the previous at least two numbers in the one or more storage means with each of the revised at least two numbers.

5. The method of claim 1 wherein at least a first of the one or more storage means is located at a first site, and a second of the one or more storage means is located at a second site.

6. The method of claim 1 wherein at least one of each of the at least two numbers is secret, and at least another of each of the at least two numbers is non-secret.

7. A method for coding first information, the method comprising:

coding the first information using second information and then coding the result using third information, at least one of the second and third information being associated with at least one entity, the entity comprising a person or a computer program, wherein a credential having non-secret information stored therein is previously issued to at least one entity by a trusted entity, the non-secret information including the second or third information.

8. In a multi-party transaction system, a method for securing information relevant to a transaction, the method comprising:

coding the information relevant to the transaction using first information associated with a party to generate first coded transaction information;

coding the first coded transaction information using second information associated with more than one party to generate second coded transaction information, wherein a credential having non-secret information stored therein is previously issued to at least one of the parties by a trusted party, the non-secret information including the first or second information.

9. The method of claim 8 further comprising recovering information relevant to the transaction by:

uncoding the second coded transaction information using the second information associated with the more than one party to recover the first coded transaction information; and

uncoding the first coded transaction information using third information associated with the party to recover the information relevant to the transaction.

10. A method for securing in escrow and in trust, a joint key associated with a first party and a second party and stored in a storage means associated with the second party, wherein escrowed or entrusted information was previously used for generating a variable authentication number (VAN), the joint key being derivable from information associated with the first party and information associated with the second party, the VAN being subsequently used in authenticating the first party, the first party being enrolled by the second party and being issued a credential, the VAN being stored in the credential, the method comprising:

previously receiving information associated with the first party and information associated with the second party;

previously generating a joint key using the information associated with the first party, and the information associated with the second party; and

retaining in the storage means, in trust, at least the joint key.

11. The method of claim 10 wherein the second party is an agent, or an agency, or an official of an agency, or an authority, or an administrator, or an entity entrusted with issuing the credential.

12. A method for enrolling and issuing a credential to a first party by a second party, and subsequently granting the first party access to a first storage means, wherein the first party has a first personal identification number (PIN1), and the second party is previously granted authority to issue a credential to the first party, the first storage means, being accessible only to a party with knowledge of the first PIN1, the method of enrollment and issuing a credential comprising:

receiving information associated with the first party;

receiving information associated with the second party;

storing in escrow and in trust the information associated with the first party and the information associated with the second party in a second storage means, wherein at least a portion of the information retrieved from the second storage means is used in enrolling the first party and issuing the credential; and

subsequently granting the first party access to the first storage means by using the PIN1 or the credential.

13. The method of claim 12 wherein the second storage means is accessible for storing information therein only by a party with knowledge of a second PIN (PIN2) known to at least the second party, such that if no party exists with knowledge of the second (PIN2), then information cannot be stored in the second storage means.

14. A method for enrolling a first party by a second party, and subsequently granting the first party access to a first storage means, wherein the first party has a first personal identification number (PIN1), and the second party has a second personal identification number (PIN2), the first storage means, being accessible only to a party with knowledge of the first PIN1 or with knowledge of the second PIN2, the method of enrollment comprising:

receiving information associated with the first party;

receiving information associated with the second party;

coding the information associated with the first party and the information associated with the second party to generate a joint code;

storing the joint code and the information associated with the second party in a second storage means; and

subsequently receiving and using PIN1 or PIN2, and retrieving and using the joint code and the information associated with the second party in granting the first party access to the first storage means.

15. The method of claim 14 wherein the second storage means is accessible for storing information therein only by a party with knowledge of the second PIN (PIN2), such that if no party exists with knowledge of the second (PIN2) then information cannot be stored in the second storage means.

16. A method for granting a first party access to a first storage means, subsequent to being enrolled by a second party, wherein the first party has a personal identification number (PIN), and wherein information associated with the second party was previously stored during enrollment in a second storage means, and a first joint code was previously generated and stored during enrollment in the second storage means, wherein the joint code was previously generated by using first coded authentication information derived or accessed from the personal identification number (PIN) of the first party and information associated with the second party, the method comprising:

receiving a personal identification number (PIN) from the first party and generating or accessing second coded authentication information using the PIN;

retrieving from the second storage means the information associated with the second party, and the first joint code;

coding the second coded authentication information and the information associated with the second party to generate a second joint code;

comparing the first joint code and the second joint code; and

granting the first party access to the first storage means, if the first joint code corresponds to the second joint code.

17. A method for authenticating a first party at first site by a second party at a second site and granting the first party access to a first storage means at a second site, the second party being a person or a computer program, wherein the first party has a personal identification number (PIN), and wherein first information associated with the second party is generated and stored in a second storage means associated with the second party at the second site, and wherein first coded information previously derived or accessed by using the PIN of the first party was previously stored in the second storage means, the method comprising:

generating the first information, and storing the first information in the second storage means;

receiving the PIN from the first party and deriving or accessing second coded information by using the PIN;

retrieving from the second storage means the first information, the first information being previously derived or accessed by using the PIN;

coding the first coded information previously derived or accessed by using the PIN and the first information associated with the second party to generate a first joint code;

coding the second coded information derived or accessed by using the PIN and the first information associated with the second party to generate a second joint code;

comparing the first joint code and the second joint code; and

authenticating the first party by the second party, and granting the first party access to the first storage means, if the first joint code corresponds to the second joint code.

18. The method of claim 17 wherein the second party is authenticated by the first party, wherein third information associated with the first party is generated and stored in a third storage means at the first site, and fourth information associated with the second party was previously stored in the third storage means, and fifth information associated with the second party was previously stored in a fourth storage means at a second site, the method further comprising:

generating the third information associated with the first party;

storing the third information in the third storage means;

retrieving the third information associated with the first party, and the fifth information associated with the second party;

coding the fifth information and the third information to generate a third joint code;

retrieving the fourth information associated with the second party;

uncoding the third joint code using the fourth information to recover the third information;

comparing the generated third information and the recovered third information; and

authenticating the second party if the generated third information corresponds to the recovered third information.

19. The method of claim 18 wherein a credential previously issued to the second party by a trusted party is used by the first party to verify that the fourth information is secured to the second party.

20. The method of claim 18 wherein the first information associated with the second party, and the third information associated with the first party each comprise a random number.

21. The method of claim 18 wherein the third information associated with the second party, and the fourth information associated with the first party, each comprise a random number.

22. In a computer system comprising a memory containing computer information or a first computer program stored in a controlled memory area to which access is granted only upon proper authentication of an authorized user of the computer system, the user including a person or a second computer program, the memory further including a stored control program for interacting with the user and for making a determination as to whether the user is an authorized user, the memory further including a first area not readily accessible to a user, the first area containing a first revisable code, and a second area containing a second revisable code, a method of authentication of a user comprising:

receiving in the computer system identification information associated with the user;

generating or accessing first coded authentication information using the received identification information associated with the user;

retrieving the first revisable code from the first memory area and the second revisable code from the second memory area and deriving therefrom second coded authentication information;

comparing the first coded authentication information with the second coded authentication information;

authenticating the user, and granting access to the computer information or a first computer program stored in the controlled memory area to the user only if the first and second coded authentication information compare favorably.

23. The method as recited in claim 22 further comprising revising and storing the first and second revisable codes in the original respective memory areas only if the first and second coded authentication information compare favorably.

24. The method as recited in claim 23 wherein computer information stored in the memory of the computer system may be reproduced, the method further comprising:

previously recording the second revisable code with the computer information to be reproduced;

permitting the computer information to be reproduced only if the access has been granted to the user; and

thereafter retrieving the second revisable code retrieved from the reproduced information and using the second revisable code to authenticate the user if the reproduced information is used or accessed.

25. In a computer system comprising a memory containing computer information or a first computer program stored in a controlled memory area to which access is granted only upon proper authentication of an authorized user of the computer system, the user including a person or a second computer program, the memory further including a stored control program for interacting with a user and for making a determination as to whether the user is an authorized user, the memory further including a first area not readily accessible to a user, the first area containing a first revisable codes and a second area containing a second revisable code, a method of authentication of a user comprising:

receiving in the computer system identification information associated with the user;

generating or accessing first coded authentication information using the received identification information associated with the user;

retrieving the first revisable code from the first memory area and the second revisable code from the second memory area;

deriving a third revisable code using the retrieved first revisable code and the first coded authentication information;

comparing the retrieved second revisable code with the derived third revisable code;

authenticating the user and granting access to the computer information or first computer program stored in the controlled memory area to the user only if the second and third revisable codes compare favorably.

26. The method as recited in claim 25 further comprising revising and storing the first and second revisable codes in the original respective memory areas only if the second and third revisable codes compare favorably.

27. The method as recited in claim 25 wherein computer information stored in the memory of the computer system may be reproduced, the method further comprising:

previously recording the second revisable code with the computer information to be reproduced;

permitting the computer information to be reproduced only if the access has been granted to the user; and

thereafter retrieving the second revisable code retrieved from the reproduced information and using the second revisable code to authenticate the user if the reproduced information is used or accessed.

28. A method for authenticating a first party by using information stored in a credential, the credential being previously issued to the first party by a second party, wherein information previously stored in the credential comprises at least a non-secret variable authentication number (VAN) and other non-secret credential information, the method comprising:

previously irreversibly coding at least a portion of the other non-secret credential information to derive an irreversibly coded number, and further coding the irreversibly coded number with first information associated with the second party to derive a variable authentication number (VAN);

previously storing the VAN and the other non-secret credential information in the credential;

retrieving the VAN and the other non-secret credential information stored in the credential;

retrieving second information associated with the second party previously stored in a storage means associated with at least one of the parties;

uncoding the VAN using the second information associated with the second party to derive the irreversibly coded number; and

authenticating the first party if the irreversibly coded number derived from at least a portion of the other non-secret credential information retrieved from the credential corresponds to the irreversibly coded number uncoded from the VAN.

29. The method of claim 28 wherein the first information associated with the second party comprises a secret key, and the second information associated with the second party comprises a non-secret key.

30. The method of claim 28 wherein the at least a portion of the other non-secret credential information comprises a non-secret key associated with the first party.

31. A method for issuing a credential to a first party by a second party, the method comprising:

the second party receiving non-secret information associated with the first party;

the second party authenticating at least a portion of the received non-secret information associated with the first party;

denying issuance of the credential if at least a portion of the received non-secret information associated with the first party is determined not to be authentic;

coding at least a portion of the received non-secret information associated with the first party with first information associated with the second party to derive a variable authentication number (VAN);

storing in the credential the VAN and at least a portion of the received non-secret information associated with the first party, and other information associated with the second party; and

issuing the credential to the first party.

32. The method of claim 31 wherein at least a portion of the non-secret information associated with the first party comprises a non-secret key associated with the first party.

33. A method for authenticating a first party by using information stored in a credential, the credential being previously issued to the first party by a second party, wherein information previously stored in the credential comprises at least a non-secret variable authentication number (VAN) and other non-secret credential information, the method comprising:

previously generating a first error detection code (EDC1) by using at least a portion the other non-secret credential information;

previously coding the first error detection code (EDC1) with first information associated with the second party to derive a variable authentication number (VAN);

previously storing the VAN and the other non-secret credential information in the credential;

retrieving the VAN and the other non-secret credential information stored in the credential;

deriving a second error detection code (EDC2) by using at least a portion of the retrieved other non-secret credential information;

retrieving second information associated with the second party previously stored in a storage means associated with at least one of the parties;

uncoding the VAN using the second information associated with the second party to derive a third error detection code (EDC3); and

authenticating the first party and at least a portion of the non-secret information stored in the credential if the second error detection code (EDC2) corresponds to the third error detection code (EDC3).

34. The method of claim 33 wherein the first information associated with the second party comprises a secret key, and the second information associated with the second party comprises a non-secret key.

35. The method of claim 33 wherein the at least a portion of the other non-secret credential information comprises a non-secret key associated with the first party.

36. A method for issuing a credential to a first party by a second party, the method comprising:

the second party receiving non-secret information associated with the first party;

the second party authenticating at least a portion of the received non-secret information associated with the first party;

denying issuance of the credential if at least a portion of the received non-secret information associated with the first party is determined not to be authentic;

generating an error detection code (EDC) by using at least a portion the received non-secret information associated with the first party;

storing in the credential the EDC and at least a portion the received non-secret information associated with the first party, and other information associated with the second party; and

issuing the credential to the first party.

37. The method of claim 36 wherein at least a portion of the non-secret information associated with the first party comprises a non-secret key associated with the first party.

38. The method of claim 36 further comprising:

coding the error detection code (EDC) by using first information associated with the second party to derive a variable authentication number (VAN), and

storing the VAN in the credential.

39. A method for authenticating a first party at a first site by a second party at a second site, the second party being a person or a computer program, by using a personal identification number (PIN) supplied by the first party at the first site, and further using a first random number (RN1) generated by the second party at the second site, the PIN being previously used to derive or access first coded authentication information, the first coded authentication information being previously stored in a storage means associated with the second party at the second site, the method comprising:

receiving a PIN at the first site from a first party to be authenticated;

generating or accessing second coded authentication information using the received PIN;

generating a first random number (RN1) at a second site by the second party;

storing the first random number (RN1) in the second storage means at the second site;

transmitting the first random number (RN1) from the second site to the first site;

receiving the first random number (RN1) at the first site by the first party;

coding the received first random number (RN1) and the second coded authentication information to derive a first anti-duplication variable authentication number (ADVAN1);

transmitting the first anti-duplication variable authentication number (ADVAN1) from the first site to the second site;

receiving the first anti-duplication variable authentication number (ADVAN1) at the second site by the second party;

retrieving the first coded authentication information from the storage means at the second site;

coding the first random number (RN1) and the first coded authentication information to generate a second anti-duplication variable authentication number (ADVAN2);

comparing the first anti-duplication variable authentication number (ADVAN1) and the second anti-duplication variable authentication number (ADVAN2); and

authenticating the first party by the second party if the first anti-duplication variable authentication number (ADVAN1) and the second anti-duplication variable authentication number (ADVAN2) correspond.

40. The method of claim 39 wherein after authentication occurs, the first party is authorized access to information or programs stored at the second site.

41. A method for authenticating the transfer of funds from a first account associated with a first party to a second account associated with a second party, the first account information being stored in a first storage means, and the second account information being stored in a second storage means, the method comprising:

receiving funds transfer information from the first party, including at least information for identifying the first account of the first party, and information for identifying the second account of the second party, and a transfer amount;

generating a variable authentication number (VAN) using at least a portion of the received funds transfer information;

a third party for determining whether the at least a portion of the received funds transfer information is authentic by using the VAN; and

transferring funds from the first account of the first party to the second account of the second party if the at least a portion of the received funds transfer information and the VAN are determined to be authentic.

42. The method of claim 41 further comprising:

receiving from the first party information for identifying the first party;

determining whether the first party is authentic by using the information for identifying the first party;

determining whether the at least a portion of the received funds transfer information is authentic by using the VAN; and

debiting the first account of the first party and crediting the second account of the second party with the funds transfer amount if the at least a portion of the received funds transfer information is determined to be authentic.

43. The method of claim 41 wherein the funds transfer comprises a payment made by the first party to the second party.

44. The method of claim 43 wherein prior to payment being made to the second party, the first party is presented with the second party'"'"'s invoice, and after the payment is made to second party, the accounts receivable associated with the second party, and the accounts payable associated with the first party are updated.

45. The method of claim 41 wherein the VAN is used to confirm, substantiate, acknowledge, authorize, reference, validate or verify the transfer of funds.

46. The method of claim 41 wherein the VAN is generated by using an error detection code derived by using at least a portion of the funds transfer information.

47. The method of claim 41 for further securing the transfer of funds, at least one party being previously issued a credential by a trusted party, the credential information including information associated with the at least one party, and a second variable authentication number (VAN1), the VAN1 being used to secure at least a portion of the credential information to the at least one party, authentication and the transfer of funds being denied to the at least one party if the at least a portion of the credential information cannot be secured to the at least one party by using the VAN1.

48. The method of claim 41 wherein the first party and the second party are the same party.

49. The method of claim 48 wherein the second storage means comprises a credential.

50. The method of claim 41 wherein the first storage means comprises a credential, and the second storage means comprises a credential.

51. A method for authenticating the transfer of funds from an account associated with a first party to an account associated with a second party, a credential being previously issued to at least one of the parties by a trusted party, the information stored in the credential being non-secret, the method comprising:

receiving funds transfer information, including at least information for identifying the account of the first party, and information for identifying the account of the second party, and a transfer amount;

generating a variable authentication number (VAN) using at least a portion of the received funds transfer information;

determining whether the at least a portion of the received funds transfer information is authentic by using the VAN and the credential information; and

transferring funds from the account of the first party to the account of the second party if the at least a portion of the received funds transfer information and the VAN are determined to be authentic.

52. The method of claim 51 further comprising:

receiving from the first party information for identifying the first party;

determining whether the first party is authentic by using the information for identifying the first party;

determining whether the at least a portion of the received funds transfer information is authentic by using the VAN; and

debiting the account of the first party, and crediting the account of the second party with the funds transfer amount if the at least a portion of the received funds transfer information is determined to be authentic.

53. The method of claim 51 wherein the funds transfer comprises a payment made by the first party to the second party.

54. The method of claim 51 wherein the VAN is used to confirm, substantiate, acknowledge, authorize, reference, validate or verify the transfer of funds.

55. The method of claim 51 wherein the VAN is generated by using an error detection code derived by using at least a portion of the funds transfer information.

56. The method of claim 51 for further securing the transfer of funds, at least one party being previously issued a credential by a trusted party, the credential information including information associated with the at least one party, and a second variable authentication number (VAN1), the VAN1 being used to secure at least a portion of the credential information to the at least one party, authentication and the transfer of funds being denied to the at least one party if the at least a portion of the credential information cannot be secured to the at least one party by using the VAN1.

57. A method for authenticating the transfer of funds from an account associated with a first party to an account associated with a second party, at least a part of the transfer being carried out by a third party, comprising:

receiving funds transfer information, including at least information for identifying the account of the first party, and information for identifying the account of the second party, and information for identifying the account of the third party, and a transfer amount;

generating a first variable authentication number (VAN1) using at least a portion of the received funds transfer information, the VAN1 being associated with the transfer of funds from the account of the third party to the account of the second party;

determining whether the at least a portion of the received funds transfer information is authentic by using VAN1;

transferring the funds from the account of the third party to the account of the second party if the at least a portion of the received funds transfer information and the VAN1 are determined to be authentic;

generating a second variable authentication number (VAN2) using at least a portion of the received funds transfer information, the VAN2 being associated with the transfer of funds from the account of the first party to the account of the third party;

determining whether the at least a portion of the received funds transfer information is authentic by using VAN2; and

transferring the funds from the account of the first party to the account of the third party if the at least a portion of the received funds transfer information and the VAN2 are determined to be authentic.

58. The method of claim 57 further comprising:

receiving from the first party information for identifying the first party;

determining whether the first party is authentic by using the information for identifying the first party;

determining whether the at least a portion of the received funds transfer information is authentic by using the VAN2; and

debiting the account of the first party and crediting the account of the third party with the funds transfer amount if the at least a portion of the received funds transfer information and the VAN2 are determined to be authentic.

59. The method of claim 57 wherein the funds transfer comprises a payment made by the first party or the third party to the second party.

60. The method of claim 57 wherein the VAN1 or the VAN2 are used to confirm, substantiate, acknowledge, authorize, reference, validate or verify the transfer of funds.

61. The method of claim 57 wherein the VAN1 or the VAN2 are each generated by using an error detection code derived by using at least a portion of the funds transfer information.

62. The method of claim 57 for further securing the transfer of funds, at least one party being previously issued a credential by a trusted party, the credential information including information associated with the at least one party, and a variable authentication number (VAN3), the VAN3 being used to secure at least a portion of the credential information to the at least one party, authentication and the transfer of funds being denied to the at least one party if the at least a portion of the credential information cannot be secured to the at least one party by using the VAN3.

63. A method for authenticating and securing the integrity of relevant information transmitted from a first party at a first site to a second party at a second site by using first information associated with the first party, the first information comprising a secret first key, a non-secret second key, and first credential information, the first information being previously stored in a first storage means at the first site, and the first credential information comprising non-secret information for securing the second key to the first party, the first credential information including a third error detection code (EDC3) being previously stored in the first credential by a third party during prior issuance of the first credential to the first party, and the second key associated with the first party being previously stored in a second storage means at the second site, and the first key being used by the first party to generate a first variable authentication number (VAN1), the VAN1 and the second key being used by the second party to authenticate the first party and the integrity of the relevant information received from the first party, the method comprising:

receiving relevant information from the first party;

deriving a first error detection code (EDC1) by using the relevant information;

retrieving the first information previously stored in the first storage means;

coding the EDC1 with the retrieved first key to generate the first variable authentication number (VAN1);

forming a first message including at least the VAN1, the first credential information, and the relevant information;

transmitting the first message from the first party at the first site to the second party at the second site, and receiving the first message at the second site;

extracting the VAN1, the first credential information, and the relevant information from the first message at the second site;

retrieving the second key from the second storage means at the second site;

determining if the first party is secured to the second key by using the first credential information and the third error detection code (EDC3);

rejecting the first message if the first party is determined not to be secured to the second key;

uncoding the VAN1 using the second key to recover the first error detection code (EDC1);

deriving a second error detection code (EDC2) by using the relevant information;

comparing the first error detection code (EDC1) with the second error detection code (EDC2); and

authenticating the first party and the integrity of the relevant information if the first error detection code (EDC1) and the second error detection code (EDC2) correspond.

64. The method of claim 63 wherein second information associated with the second party is previously stored in the second storage means, the second information comprising a secret third key and a non-secret fourth key and second credential information, the second credential information including a fourth error detection code (EDC4) being previously stored in the second credential by a third party during prior issuance of the second credential to the second party, and the non-secret fourth key being previously stored in the first storage means at the first site, the method further comprising:

the second party retrieving the second credential information from the second storage means;

the second party transmitting a second message comprising at least the second credential information from the second site to the first site, and the second message being received at the first site;

the first party extracting the second credential information from the received second message;

retrieving the fourth key from the first storage means at the first site;

determining if the second party is secured to the fourth key by using the second credential information and the fourth error detection code (EDC4);

rejecting the second message if the second party is determined not to be secured to the fourth key;

receiving or generating sensitive information;

coding the sensitive information with the fourth key to generate secure coded sensitive information;

transmitting the secure coded sensitive information from the first site to the second site, and receiving the secure coded sensitive information at the second site;

the second party retrieving the third key from the second storage means; and

uncoding the secure coded sensitive information using the third key to recover the sensitive information.

65. The method of claim 63 wherein the first party is granted access to the first key in the first storage means only if the identity of the first party is authenticated by using a personal identification number (PIN) belonging to the first party.

66. The method of claim 63 wherein a second variable authentication number (VAN2) is stored in the first credential during prior issuance of the first credential, the VAN2 being generated by coding the EDC3 with a third secret key associated with the third party, and wherein a fourth non-secret key associated with the third party is previously stored in the second storage means at the second site, the fourth key being used by the second party to authenticate the first credential information, and following the step of retrieving the second key from the second storage means at the second site, the method further comprising:

retrieving the fourth key from the second storage means at the second site;

extracting the EDC3 and the VAN2 from the first credential information in the received first message;

uncoding the VAN2 using the fourth key to recover the third error detection code (EDC3);

determining if the extracted EDC3 and the recovered EDC3 correspond;

rejecting the first message if the extracted EDC3 and the recovered EDC3 do not correspond.

67. The method of claim 64 wherein the sensitive information comprises a session key being subsequently used by the first and second parties to code and uncode information transferred between the first and second sites.

68. The method of claim 64 wherein the first party is granted access to the first key in the first storage means only if the identity of the first party is authenticated by using a personal identification number (PIN) belonging to the first party, and the second party is granted access to the third key in the second storage means only if the identity of the second party is authenticated.

69. The method of claim 64 wherein a third variable authentication number (VAN3) is stored in the second credential during prior issuance of the second credential, the VAN3 being generated by coding the EDC4 with a third secret key associated with the third party, and a fourth non-secret key associated with the third party being previously stored in the first storage means at the first site, the fourth key being used by the first party to authenticate the second credential information, and following the step of retrieving the fourth key from the first storage means at the first site, the method further comprising:

retrieving the fourth key from the first storage means at the first site;

extracting the EDC4 and the VAN3 from the second credential information in the received second message;

uncoding the VAN3 using the fourth key to recover the fourth error detection code (EDC4);

determining if the extracted EDC4 and the recovered EDC4 correspond;

rejecting the second message if the extracted EDC4 and the recovered EDC4 do not correspond.

70. A method of issuing a credential to a first party at a first site, by a second party at a second site, wherein the first party is authenticated during at least one stage of a subsequent transaction by using the credential, wherein the information stored in the credential comprises at least a first variable authentication number VAN1, information for identifying the first party, a non-secret key associated with the first party, and information for identifying the second party, and first and second storage means at the first site, the first storage means being used to store a secret key associated with the first party, the secret key being accessible to a party with knowledge of a pre-determined personal identification number (PIN), the second storage means being used to store the non-secret key associated with the first party, and third and fourth storage means at the second site, the third storage means being used to store a secret key associated with the second party, the secret key being accessible to an authorized party, the fourth storage means being used to store a non-secret key associated with the second party, the method comprising:

receiving information for identifying the first party, and a pre-determined personal identification number (PIN) from the first party;

retrieving the secret key associated with the first party from the first storage means, only if the personal identification number (PIN) is determined to be authentic;

coding at least a portion of the information for identifying the first party to derive a first error detection code (EDC1);

generating a second variable authentication number VAN2 by coding the EDC1 with the secret key associated with the first party;

retrieving the non-secret key associated with the first party from the second storage means;

forming a message including at least the VAN2, the non-secret key associated with the first party, the EDC1, and the information for identifying the first party;

transmitting the message from the first party at the first site to the second party at the second site, and receiving the message at the second site;

extracting the VAN2, the non-secret key associated with the first party, the EDC1, and the information for identifying the first party from the message at the second site;

using at least a portion of the information for identifying the first party to authenticate the identity of the first party;

denying issuance of the credential if at least a portion of the information for identifying the first party is determined not to be authentic;

retrieving the secret key associated with the second party from the third storage means at the second site;

generating a first variable authentication number VAN1 by coding the second variable authentication number VAN2 with the secret key associated with the second party;

storing in the credential at least the VAN1, the EDC1, the non-secret key associated with the first party, and information for identifying the second party;

issuing the credential to the first party;

wherein the method for authenticating the first party and the credential during at least one stage of a subsequent transaction, comprises;

retrieving the information previously stored in the credential;

receiving or retrieving the non-secret key associated with the first party and the non-secret key associated with the second party;

uncoding the first variable authentication number VAN1 using the non-secret key associated with the second party to recover the second variable authentication number VAN2;

uncoding the second variable authentication number VAN2 using the non-secret key associated with the first party to recover the EDC1;

authenticating the credential, and the first party who was issued the credential, if the EDC1 retrieved from the credential corresponds to the EDC1 recovered from the second variable authentication number VAN2.

71. The method of claim 70 wherein the non-secret key associated with the second party is retrieved from fourth storage means and stored in the credential, prior to issuing the credential.

72. The method of claim 70 wherein prior to denying issuance of the credential if at least a portion of the information for identifying the first party is determined not to be authentic, the method further comprising:

uncoding the second variable authentication number VAN2 by using the non-secret key associated with the first party to recover the EDC1;

comparing the recovered EDC1 with the EDC1 extracted from the received message; and

denying issuance of the credential if the extracted EDC1 and the recovered EDC1 do not match.

73. A method for determining if an unauthorized duplication or alteration occurred in first transaction information (FXI) and in second transaction information (SXI), the FXI being originated by a second entity at a second site, and being transmitted to a first entity at a first site, the first entity and the second entity being a person, or a computer program, and the SXI being originated at the first site and being combined with the FXI to form first combined transaction information (FCX) at the first site, an anti-duplication variable authentication number (ADVAN1) being derived from the FCX and first information (FK1) associated with the first entity, the FK1 being previously stored in a first storage means at the first site and being solely accessible to the first entity, the ADVAN1, and the SXI being transmitted from the first site to the second the FXI and the SXI being authenticated at the second site, by using the ADVAN1, FXI, SXI, and second information (FK2) associated with the first entity, the FK2 being previously stored in a second storage means at the second site, a first transaction record storage means (FXR) being used at the first site, and a second transaction record storage means (SXR) being used at the second site, the FXR and SXR being used to store at least the FXI and the SXI, the method comprising:

generating or receiving first transaction information (FXI) at the second site, and storing the FXI in the second transaction record (SXR) storage means at the second site;

transmitting the FXI from the second site to the first site, and receiving the FXI at the first site;

storing the FXI in the first transaction record (FXR) storage means at the first site;

generating or receiving second transaction information (SXI) at the first site;

storing the SXI in the FXR storage means at the first site;

combining the FXI and the SXI to form first combined transaction information (FCX);

retrieving the first information (FK1) associated with the first entity from the first storage means, the FK1 being accessible only to the first entity;

coding the FCX with the retrieved FK1 to derive a first anti-duplication variable authentication number (ADVAN1);

transmitting the first anti-duplication variable authentication number (ADVAN1) and the SXI, from the first site to the second site, and receiving the ADVAN1 and the SXI at the second site;

storing the received ADVAN1 and the SXI in the SXR storage means at the second site; and

the second entity subsequently using the ADVAN1, the FXI, the SXI, and second information (FK2) associated with the first entity to determine if an unauthorized duplication or alteration occurred in the first transaction information (FXI) or in the second transaction information (SXI).

74. The method of claim 73 wherein coding the FCX to derive the ADVAN1 further comprises:

irreversibly coding the FCX to derive a first error detection code (EDC1);

storing the EDC1 in the FXR storage means; and

coding the EDC1 with the first information (FK1) associated with the first entity to derive the first anti-duplication authentication number (ADVAN1).

75. The method of claim 74 for further authenticating the integrity of the FXI, and for further authenticating the first entity by the second entity, the method further comprising:

retrieving the FXI, the SXI, and the ADVAN1 from the SXR storage means at the second site;

retrieving the second information (FK2) associated with the first entity from the second storage means;

uncoding the ADVAN1 by using the FK2 to recover the first error detection code (EDC1);

combining the retrieved FXI and the retrieved SXI to form a second combined transaction information (SCX);

irreversibly coding the second combined transaction information (SCX) to derive a second error detection code (EDC2);

storing the second error detection code (EDC2) in the SXR storage means at the second site;

comparing the recovered first error detection code (EDC1) and the derived second error detection code (EDC2); and

the second entity (1) authenticating the first entity and determining that no unauthorized duplication or alteration occurred in first transaction information (FXI) if the recovered EDC1 and the derived EDC2 correspond;

or (2) denying authentication to the first entity or determining that an unauthorized duplication or alteration occurred in first transaction information (FXI) if the recovered EDC1 and the derived EDC2 do not correspond.

76. The method of claim 73 wherein the first entity is authenticated by the second entity, and wherein the FXI comprises a first random number (RN1), and the SXI comprises a second random number (RN2).

77. The method of claim 73 wherein FXI and SXI are both present.

78. The method of claim 73 for further determining if an unauthorized duplication or alteration occurred in the SXI, and for further authenticating the second entity by the first entity, by using a second anti-duplication variable identification number (ADVAN2) derived by the second entity, the ADVAN2 being derived at the second site from the EDC2 and third information (SK3) associated with the second entity, the SK3 being previously stored in a third storage means at the second site, the SXI and the second entity being authenticated by the first entity by using the ADVAN2, the SXI, the FXI, and fourth information (SK4) associated with the second entity, the SK4 being previously stored in a fourth storage means at the first site, the method further comprising:

retrieving the second error detection code (EDC2) from the SXR storage means;

retrieving the third information (SK3) associated with the second entity from the third storage means at the second site;

coding the EDC2 with the SK3 to derive a second anti-duplication variable authentication number (ADVAN2);

transmitting the ADVAN2 from the second site to the first site, and receiving the ADVAN2 at the first site;

storing the ADVAN2 in the FXR storage means;

retrieving fourth information (SK4) associated with the second entity from the fourth storage means at the first site;

retrieving the ADVAN2 from the FXR storage means;

uncoding the ADVAN2 by using the SK4 to recover the second error detection code (EDC2);

retrieving the FXI, and the SXI from the FXR storage means;

combining the retrieved FXI and the retrieved SXI to form a third combined transaction information (TCX);

irreversibly coding the TCX to derive a third error detection code (EDC3);

storing the third error detection code (EDC3) in FXR storage means;

comparing the derived third error detection code (EDC3) and the recovered second error detection code (EDC2); and

the first entity (1) authenticating the second entity and determining that no unauthorized duplication, or alteration, occurred in the second transaction information (SXI) if the derived EDC3 and the recovered EDC2 correspond, or (2) denying authentication to the second entity or determining that an unauthorized duplication, or alteration, occurred in the second transaction information (SXI) if the derived EDC3 and the recovered EDC2 do not correspond.

79. The method of claim 73 for further securing the first and second information associated with the first entity to the first entity by using a credential previously issued to the first entity by a trusted entity, the information stored in the credential including at least the first or second information associated with the first entity, and a first variable authentication number (VAN1), the VAN1 being used to secure the first or second information to the first entity, authentication being denied if the first or second information associated with the first entity cannot be secured to the first entity by using VAN1.

80. The method of claim 73 for further securing the third and fourth information associated with the second entity to the second entity by using a credential previously issued to the second entity by a trusted entity, the information stored in the credential including at least the third or fourth information associated with the second entity, and a second variable authentication number (VAN2), the VAN2 being used to secure the third or fourth information to the second entity, authentication being denied if the third or fourth information associated with the second entity cannot be secured to the second entity by using VAN2.

81. The method of claim 73 wherein the first entity has a personal identification number (PIN), the PIN being used to access the FK1 information stored in the first storage means, the method further comprising:

receiving a personal identification number (PIN) supplied by the first entity at the first site; and

retrieving the first information associated with the first entity from the first storage means only if the PIN of the first entity is determined to be authentic.

82. The method of claim 73 wherein a transaction number (XN) is used in conjunction with the FXI or the SXI to identify and retrieve transaction information from a storage means associated with an entity participant in a transaction, the method further comprising:

generating an XN at one of the first or second sites, and transmitting the XN to the other of the first or second sites;

storing the XN in the FXR storage means and SXR storage means associated with the transaction;

using the XN to identify the transaction, and as an index in retrieving relevant transaction information.

83. The method of claim 73 wherein one of the first and second information associated with the first entity is secret, and the other of the first and second information associated with the first entity is non-secret.

84. The method of claim 73 wherein one of the third and fourth information associated with the second entity is secret, and the other of the third and fourth information associated with the second entity is non-secret.

85. The method of claim 73 wherein the same key, or either one of RN1 or RN2, is used subsequent to authentication, by each of the first and second entities to code and uncode information transmitted between the sites.

86. The method of claim 73 for further authenticating the participation of the first entity in a transaction by a third entity at a third site, wherein the FXI comprises the XN and fifth information associated with the first entity, the fifth information being previously stored in a fifth storage means at the first site and also in a seventh storage means at the third site, and second information associated with the third entity being previously stored in sixth storage means at the first site, and first information associated with the third entity being previously stored in an eighth storage means at the third site, the method further comprising:

retrieving the fifth information associated with the first entity from the fifth storage means at the first site;

retrieving the XN from the FXR storage means;

combining the XN and the fifth information to form a first information group (IG1);

irreversibly coding IG1 to derive a fourth error detection code (EDC4);

retrieving the second information associated with the third entity from the sixth storage means at the first site;

coding the EDC4 with the second information associated with the third entity to derive a third anti-duplication authentication number (ADVAN3);

transmitting the ADVAN3 and the XN from the first site to the third site, and receiving the ADVAN3 and the XN at the third site;

retrieving the first information associated with the third entity from the eighth storage means at the third site;

uncoding the ADVAN3 by using the first information associated with the third entity to recover the EDC4;

retrieving the fifth information from the seventh storage means at the third site;

combining the received XN and the fifth information to form a second information group (IG2);

irreversibly coding the IG2 to derive a fifth error detection code (EDC5);

comparing EDC4 and EDC5; and

authenticating the participation of the first entity in the transaction if the EDC4 and EDC5 match, or determining that the entity did not participate in the transaction if the EDC4 and EDC5 do not match.

87. The method of claim 73 wherein the FXI is made secure in transmitting the FXI from the second site to the first site by coding the FXI with third information associated with the first entity to derive coded FXI, the third information associated with the first entity being previously stored in a ninth storage means at the second site, and by uncoding the coded FXI by using fourth information associated with the first entity, the fourth information associated with the first entity being previously stored in a tenth storage means at the first site, the method further comprising:

retrieving the third information associated with the first entity from the ninth storage means at the second site;

coding the FXI with the third information associated with the first entity to derive a coded FXI at the second site;

transmitting the coded FXI from the second site to the first site, and receiving the coded FXI at the first site;

retrieving the fourth information associated with the first entity from the tenth storage means at the first site; and

uncoding the coded FXI by using fourth information associated with the first entity to recover the FXI at the first site.

88. A method for authenticating a first party at a first site by a second party at a second site, the second party being a person or a computer program, by using a personal identification number (PIN) supplied by the first party at the first site, and further using a first random number (RN1) generated by the second party at the second site, the PIN being previously used to derive or access first coded authentication information, the first coded authentication information being previously stored in a storage means associated with the second party at the second site, the method comprising:

receiving a PIN at the first site from a first party to be authenticated;

generating or accessing second coded authentication information using the received PIN;

generating a first random number (RN1) at a second site by the second party;

storing the first random number (RN1) in the second storage means at the second site;

transmitting the first random number (RN1) from the second site to the first site;

receiving the first random number (RN1) at the first site by the first party;

coding the received first random number (RN1) and the second coded authentication information to derive a first anti-duplication variable authentication number (ADVAN1), the first anti-duplication variable authentication number (ADVAN1) further being derived by irreversibly coding the received first random number (RN1) to derive a first error detection code (EDC1), and coding the first error detection code (EDC1) with the second coded authentication information to thereby derive the first anti-duplication variable authentication number (ADVAN1);

transmitting the first anti-duplication variable authentication number (ADVAN1) from the first site to the second site;

receiving the first anti-duplication variable authentication number (ADVAN1) at the second site by the second party;

retrieving the first coded authentication information from the storage means at the second site;

uncoding the received first anti-duplication variable authentication number (ADVAN1) by using the first coded authentication information to recover the first error detection code (EDC1);

retrieving the first random number (RN1) from the storage means at the second site;

irreversibly coding the retrieved first random number (RN1) to derive a second error detection code (EDC2);

comparing the first error detection code (EDC1) and the second error detection code (EDC2); and

authenticating the first party by the second party if the first error detection code (EDC1) and the second error detection code (EDC2) correspond.

89. In a check or payment instrument transaction system, a method for issuing a check or payment instrument by an originator to a recipient, information associated with the check or payment instrument comprising (1) information associated with the originator, (2) information associated with the recipient, and (3) other information which includes at least an amount of the check or payment instrument, the method comprising:

receiving the information associated with the originator and the recipient, and the other information including at least the amount;

deriving a variable authentication number (VAN) using at least a portion of the received information;

associating the received information and the VAN with the check or payment instrument; and

issuing the check or payment instrument.

90. The method of claim 89 wherein the check or payment instrument is authenticated by using at least a portion of the information associated with the check or payment instrument and the VAN.

91. A method for securing in escrow and in trust, a portion of information used to derive a joint key, the joint key being associated with a first party and a second party and being stored in a storage means associated with the second party, wherein escrowed or entrusted information was previously used for generating a variable authentication number (VAN), the joint key being derivable from information associated with the first party and information associated with the second party, the VAN being subsequently used in authenticating the first party, the first party being enrolled by the second party and being issued a credential, the VAN being stored in the credential, the method comprising:

previously receiving information associated with the first party and information associated with the second party;

previously generating a joint key using the information associated with the first party, and the information associated with the second party; and

retaining in the storage means, in trust, at least a portion of information used to derive the joint key.